In the leadup to the June 7, 2022, primary election, the South Dakota Retailers Association commissioned a poll to gauge public perceptions of property taxes, income taxes and the state’s 4.5% sales tax rate.
According to Retailers Association Executive Director Nathan Sanderson, voters overwhelmingly say that the current 4.5% sales tax rate is “about right,” but are split on property taxes. He says opposition to implementing a personal income tax is high.
Sanderson says South Dakota is often cited as one of the best-run states in the nation and the current tax system reflects that. He says policymakers sometimes talk about dramatic changes, but from the perspective of state residents, our tax policy seems about right.
When asked, “Do you think the South Dakota sales tax of 4.5% is too high, too low or about right?,” 14% say too high, 5% too low and 79% about right, with 2% unsure.
Large majorities of voters across partisan lines believe the 4.5% sales tax is about right. Base Republicans (83%), Soft Republicans (79%), Independents (77%), Soft Democrats (73%) and Base Democrats (76%) all say the current sales tax rate is about right.
Sanderson says property taxes poll somewhat differently. When asked, “Do you think real estate property taxes in South Dakota are too high, too low or about right?,” 49% say too high, 3% too low, 41% about right, with 7% unsure. Black Hills voters (60%) and older voters (55%) are most likely to think property taxes are too high.
The survey results also show there’s little support for implementing a personal income tax in the state. When asked, “Would you favor or oppose South Dakota having a personal income tax?,” 6% strongly favor, 10% somewhat favor, 13% somewhat oppose, 67% strongly oppose and 4% are unsure. Overall, 80% of South Dakotans polled oppose an income tax, while only 16% favor one.
Sanderson says South Dakotans enjoy one of the country’s lowest overall tax burdens. He says it’s pretty clear that South Dakota voters appreciate the state’s responsible approach to tax policy.
The poll, conducted by Public Opinion Strategies May 12-15, 2022, surveyed 300 likely primary voters, including 180 cell phone respondents. It has a margin of error of plus/minus 5.66%.
