22 Oct 2026
Codington County Ordinance 83 Debate: Supporters, Opponents Clash Over Half-Cent Sales Tax for Property Tax Relief
Northeast Radio SD News – Watertown, SD - The second half of Wednesday night's ballot forum at Lake Area Technical College turned local, as panelists and audience members debated Codington County Ordinance 83—a referred measure that would impose a half-cent countywide gross receipts and use tax to fund owner-occupied property tax credits.
Moderated by District 5 State Sen. Glen Vilhauer of Watertown, the discussion featured proponent Nathan "Nate" Graf and opponent Watertown Ward D Councilman Doug Allen; however, he said at the beginning he is present as a citizen, not a Councilman.
(Voters can review the full text of the referred measure on the Codington County Official Website and find statewide voter resources through the South Dakota Secretary of State Election Portal. Prior local coverage of the commission's 4-1 vote and the citizen referendum petition is available on Northeast Radio SD.)
How Ordinance 83 Originated Under Senate Bill 96
Vilhauer opened the panel by explaining that Ordinance 83 stems from Senate Bill 96, legislation passed during the 2026 legislative session and signed by Gov. Larry Rhoden in response to statewide frustration over rising property taxes. Under the law, counties could enact a 0.5 percent county sales and use tax, with proceeds going into a dedicated fund to pay down the county share of owner-occupied property taxes.
Counties could adopt the tax by commission vote or refer it directly to voters; the Codington County Commission voted 4-1 to pass Ordinance 83, after which local citizens gathered enough petition signatures to put the ordinance on the general election ballot.
According to Graf, eight South Dakota counties passed the tax this year, and six of those—including Codington and Brown counties—are appearing on the ballot for a public vote, while Brookings County declined to adopt the measure.
The Case for Ordinance 83: Offsetting $5.4 Million in Property Taxes
Speaking in favor of Ordinance 83, Graf cited statistics provided by the South Dakota Department of Revenue showing that the county portion of owner-occupied property taxes in Codington County totals $5,429,963.
Graf noted that the state projects adding a half-cent sales tax—equating to 50 cents on a $100 purchase—would generate roughly $6.1 million annually in Codington County, filling 113 percent of the owner-occupied property tax reduction pot. Under the terms of Senate Bill 96, once 100 percent of the county's owner-occupied property tax share is offset, the remaining 13 percent of collections must spill over to reduce agricultural and commercial property taxes.
"So in my yes vote, yes on 83 is if you're a homeowner in Codington County, if you're an ag owner, if you own farmland, or if you're a commercial business owner, yes on 83 saves you a lot of money," Graf said.
When asked by Vilhauer what the measure would mean for a typical household, Graf stated that based on the state's average Codington County home valuation of $325,000, the credit was initially estimated at $821 per year under the 2025 mill levy of 2.525, and around $1,000 per year under the updated mill levy of 3.081. Graf also emphasized that Codington County serves a regional trade area of roughly 100,000 people despite having a county population of about 28,000.
"Sixty percent of our sales tax is paid by out-of-county shoppers," Graf said. "Those people will help pay for that reduction."
Graf added that lowering monthly escrow payments by $60 to $80 could help more renters qualify to become homeowners, offset the property tax impact of the Codington County jail bond passed two years ago, and provide critical relief to seniors living on fixed incomes.
"In my family budget, if I spend $2,000 a month and I pay an extra $120 a year, and I save $1,000, that's $900 more dollars in my pocket," Graf said. "So that's why I vote yes on 83."
The Case Against Ordinance 83: A Regressive Tax Shift
Allen urged voters to reject Ordinance 83, arguing that the meas
