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South Dakota House Rejects Bill to Ease Forcing School Tax Votes
Proposal would have lowered signature threshold to challenge school district tax increases
Feb. 27, 2026 at 6:05am
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The South Dakota state House rejected a proposal that would have made it easier for residents to force a public vote on school district decisions to raise property taxes above state limits. The bill would have reduced the number of signatures required to trigger an election, but opponents argued it would undermine school board authority.
Why it matters
The vote highlights an ongoing debate in South Dakota over the balance of power between local school boards and taxpayers when it comes to raising property taxes to fund education. Supporters saw the bill as a way to provide more direct taxpayer control, while opponents argued it would politicize school funding decisions.
The details
Under current state law, school districts can 'opt out' of property tax limits and raise additional revenue, but local residents can petition to force a public vote on that decision. The rejected bill would have lowered the signature threshold for those petitions from 5% of registered voters to 5% of the last school board election turnout or 50 voters, whichever is greater. Supporters said this would give taxpayers more say, while opponents argued it would undermine school board authority.
- The state House rejected the bill in a 32-34 vote on February 27, 2026.
- The state Senate had previously approved the bill 20-14.
The players
Rep. John Hughes
A Republican state representative from Sioux Falls who supported the bill, arguing it would provide property tax relief.
Rep. John Shubeck
A Republican state representative from Beresford who opposed the bill, arguing taxpayers already have opportunities to influence school board decisions.
Sen. Sue Peterson
The Republican state senator from Sioux Falls who sponsored the bill, motivated by a recent Sioux Falls school district tax increase.
Legislative Research Council
The nonpartisan research agency that reported there are 79 school district tax 'opt-outs' across South Dakota.
What they’re saying
“What is the harm of letting our voters have a say? We're trying to deliver property tax relief to the citizens of South Dakota, and it's because our schools are predominantly the overwhelming share of our constituents' property taxes.”
— Rep. John Hughes
“If they have a problem with the opt-out, they need to get involved. They can't lower the bar.”
— Rep. John Shubeck
What’s next
The close 32-34 vote in the state House means the bill could be reconsidered later.
The takeaway
This vote reflects the ongoing tension in South Dakota between giving taxpayers more direct control over school funding decisions versus trusting locally elected school boards to make those choices. The debate is likely to continue as districts seek to raise taxes to meet education needs.
