Gov. Rhoden: $1.50 transaction tax a 'non-starter' in pitch for property tax fix

Governor says low-income South Dakotans would be hit hardest by proposed tax overhaul

South Dakota Gov. Larry Rhoden

Gov. Larry Rhoden says a proposal to replace property taxes with a $1.50 fee on all transactions would do more harm than good — especially for South Dakotans living paycheck to paycheck.

During a telephone town hall hosted by Americans for Prosperity on Tuesday, the Republican governor panned a plan to overhaul the state’s tax system by imposing a flat fee on purchases, calling it regressive and out of step with South Dakota values. He also used the public forum to pitch his own property tax relief plan, which would give counties the option to levy a local sales tax to ease the burden on homeowners.

“You think about the limited income folks and those living in poverty, every time they go in the grocery store to buy a loaf of bread, because that's all they can afford,” Rhoden said. “Think of what that's going to do to them on a big scale.”

Backers push $1.50 flat tax to replace SD's local property taxes