Document Type

Article

Publication Date

11-1-1979

Keywords

South Dakota State Constitution, property tax, Dakota Proposition

Abstract

The Dakota Proposition, an initiated proposal to amend the South Dakota State Constitution, will appear on the 1980 ballot. The Proposition would seem to have far reaching implications. Yet, what are these implications? Will the Proposition be a boon to taxpayers, a calamity for government, or both? Three major provisions are included in the Proposition. These are: I. A reduction or rollback of taxes on real property to one percent of Full and True value, determined by assessments performed in 1977; 2. A ceiling of two percent annual growth in the Full and True value of real property for any year during which inflation exceeds two percent. Inflation would be measured by the Consumer Price Index (CPI), an official calculation of general consumer price changes in the U.S. economy; 3. A two-thirds vote requirement for both houses of the state legislature on any tax increases, and specific prohibition of legislative changes in real property taxes or of a tax on the sale of real property. This paper involves an examination of the likely economic impacts and implications of the first two major provisions, the rollback and the ceiling on growth of the bases, and additional analyses to assist readers in making informed decisions about the Dakota Proposition.

Publisher

Department of Economics, South Dakota State University

Series Number

79-1

Number of Pages

14

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