The South Dakota House on Tuesday narrowly revived and passed a bill allowing municipalities to seek voter approval for up to an additional 1% local sales tax. The tax could run for no more than five years, must be tied to a specific project, and would require 60% voter approval. A special appointed board would determine whether a proposal could advance to a local election.
The measure initially failed 35–30, but after reconsideration, Rep. Will Mortenson switched his vote, giving the bill the 36 votes needed for passage. House Bill 1045 now heads to the Senate.
Supporters, including prime sponsor Rep. Greg Jamison, said the option would save taxpayers money by avoiding interest costs on large projects. Opponents raised concerns about low-turnout special elections, shifting project ownership to other government entities, and granting final decision‑making power to an unelected board. Some lawmakers also warned the added tax authority could lead to perceptions of over‑taxation, especially in smaller communities.
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