Codington County voters to decide 0.5 percent sales tax for property tax relief

By Steve Jurrens | Northeast Radio SD News

WATERTOWN, S.D. - Codington County voters will decide Nov. 3 whether to approve a 0.5 percent county sales and use tax intended to provide property tax relief after a citizen-led referendum petition put Ordinance 83 on the general election ballot.

The Codington County Commission adopted the ordinance July 21. It would establish a 0.5 percent county gross receipts tax and a corresponding use tax. Senate Bill 96, passed during the 2026 legislative session and codified as SDCL 10-52B, gave counties authority to levy the taxes for property tax relief.

How the tax and relief would work

If approved, the 0.5 percent tax would apply to gross receipts of businesses in Codington County already subject to the state’s retail occupational sales and service tax. A corresponding use tax would apply to the use, storage and consumption of qualifying items purchased after Jan. 1, 2027.

Commission Chair Troy VanDusen read the state’s attorney’s explanation that will appear on the ballot.

By law, all revenue from the new tax must be deposited in a dedicated county property tax reduction fund. The money first would provide a credit against property taxes on owner-occupied property, applied at an equal percentage to all qualifying properties.

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If the fund raises more than needed to offset 100 percent of county taxes on owner-occupied property, the remaining money would be used to provide an equal-percentage property tax credit on agricultural and nonagricultural property.

The county could use up to 2 percent of the money deposited in the fund during the first year and up to $20,000 in each subsequent year for administrative costs. The fund could not be used for another purpose.

What voters will decide

A yes vote would approve Ordinance 83 and allow the 0.5 percent sales and use tax to take effect on the date permitted by state law.

A no vote would reject the ordinance. The tax would not take effect, and the proposed property tax reduction fund would not be created. A no vote would not repeal any existing county ordinances.

After reading the ballot language, VanDusen thanked the citizens who organized the referendum effort.

“I would like to just take a moment to thank the people that took the initiative to seek signatures on that and get it on the ballot,” VanDusen stated. “That’s fine. That’s great. That’s our process. That’s how we do things. And so we appreciate them doing that.”