Property tax ban floated for South Dakota draws revenue, constitutionality warnings

First formal assessment of proposed constitutional amendment released by Legislative Research Council

A push to eliminate property taxes in South Dakota and instead apply a flat sales tax would force lawmakers to overhaul the way the state divvies out dollars to schools, cities and counties.

That’s according to the Legislative Research Council, which has released an analysis of a proposed constitutional amendment that would prohibit most property taxation and instead levy a $1.50 fee on transactions of $15 or more, and a 10 percent fee on purchases under $15.