South Dakota lawmakers have rejected a property tax relief plan that would have eliminated homeowner property taxes while raising the state sales tax.
The House voted 27-42 Monday against Senate Bill 169, far short of the two-thirds majority needed.
According to supporters, raising the sales tax from 4.2 to 5 percent would have saved homeowners about $417 per $100,000 of property value.
Rep. Leslie Heinemann called it “potentially the largest tax increase in South Dakota history” at $240 million.
Critics worried the plan would hurt agriculture and burden low-income renters.
Only four legislative days remain in the regular session.
Story courtesy of the South Dakota Broadcasters Association.
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