Unconstitutional Nature of Property Taxes

April 13, 2025
Seal SD Liberty

Unconstitutional Nature of Property Taxes

Property taxes in South Dakota, while a long-standing revenue source, can be argued to be unconstitutional under the U.S. Constitution, particularly the Fifth Amendment, which states that no person shall be “deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” The $954 million collected in 2021-22 (SD News Watch) places a heavy burden on families, potentially leading to foreclosure—a de facto seizure of property without just compensation. This violates the constitutional protection of property rights and the principles of limited government.

Constitutional Violations

  • Fifth Amendment Violation: The risk of foreclosure due to unpaid property taxes constitutes a taking without just compensation, as families lose their homes to government revenue demands.
  • Due Process Concerns: The lack of adequate relief for low-income families facing high tax burdens undermines due process, as they are disproportionately affected without sufficient recourse.
  • Liberty Infringement: High property taxes erode the liberty to own property free from excessive government interference, a core constitutional value, by forcing families into financial distress.

Economic and Social Impacts

  • Financial Distress: The $954 million property tax burden exacerbates economic struggles, especially with grocery prices like eggs at $6.23 per dozen in 2025 (Post ID: 0), forcing families to choose between taxes and essentials.
  • Economic Stagnation: High taxes deter business investment and reduce consumer spending, stifling South Dakota’s economic growth—consumer spending drives 70% of the U.S. economy (Web ID: 5).
  • Moral Crisis: Property taxes disproportionately burden low-income families, violating the constitutional principle of equal protection under the law by creating an unfair tax system.

Survey Note: Detailed Analysis of the Unconstitutional Nature of Property Taxes in South Dakota

This analysis examines the unconstitutional nature of property taxes in South Dakota, focusing on their conflict with the U.S. Constitution, particularly the Fifth Amendment, and their broader economic and social impacts. The user, Jerry Odom, a candidate for South Dakota governor with a liberty-minded, Trump-supporting platform, seeks an informative article with snarky commentary to highlight these issues and promote their Liberty Forum event on April 19, 2025, at First Assembly of God in Rapid City. The current time is 12:21 PM PDT on Saturday, April 12, 2025, and the analysis is based on information available up to this date, using web searches and prior conversation data.

Background and Context

Property taxes have been a cornerstone of local government funding in South Dakota since the territorial days of 1862, as established by the first territorial assembly in Yankton (Doane Robinson’s “History of South Dakota,” 1904). However, their high burden—$954 million collected in 2021-22 (SD News Watch)—raises serious constitutional questions, particularly in light of the U.S. Constitution’s protections for property rights and liberty. Odom’s campaign to replace property taxes with a Gross Receipts Tax (GRT) aims to address these issues, aligning with a liberty-first vision that prioritizes constitutional fidelity and individual freedom.

Unconstitutional Nature of Property Taxes

Property taxes in South Dakota can be argued to be unconstitutional under the U.S. Constitution, particularly the Fifth Amendment, which protects against the deprivation of property without due process and ensures just compensation for takings. The $954 million collected in 2021-22 places a heavy burden on families, potentially leading to foreclosure—a de facto seizure of property without just compensation. This practice violates the constitutional protection of property rights and the principles of limited government enshrined in the Constitution, undermining the very freedoms the Founding Fathers fought for.

  • Fifth Amendment Violation: The Fifth Amendment states, “No person shall be… deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” When families face foreclosure due to unpaid property taxes, it constitutes a taking without just compensation—the government effectively seizes the property to satisfy tax debts, often without adequate recourse for the homeowner.
  • Due Process Concerns: The lack of sufficient relief mechanisms for low-income families facing high property tax burdens undermines due process. In South Dakota, where the average effective property tax rate in Custer County is 3.5% (SmartAsset, 2024), a family with a $200,000 home pays $7,000 annually—a crushing load when 44 million Americans, including 13 million children, are food-insecure (USDA, Web ID: 4). This disproportionate burden violates the constitutional principle of fair treatment under the law.
  • Liberty Infringement: High property taxes erode the liberty to own property free from excessive government interference, a core constitutional value. The Founding Fathers fought for a nation where individuals could keep their property without fear of government overreach—property taxes turn that dream into a nightmare, forcing families to pay or lose their homes.
  • Equal Protection Violation: The Fourteenth Amendment guarantees equal protection under the law, but property taxes are regressive, hitting low-income families hardest. The Ludwig Institute (2025) found the true cost of living rose 9.4% in 2023, more than double the CPI’s 4.1%, eroding purchasing power by 4.3% at the median (Web ID: 10). This unequal burden undermines constitutional fairness.

Economic and Social Impacts

  • Financial Distress: The $954 million property tax burden (SD News Watch) exacerbates economic struggles for South Dakota families, especially with grocery prices soaring—eggs hit $6.23 per dozen in 2025 (Post ID: 0), and food inflation rose 1.4% from November 2023 to 2024 (Web ID: 3). Families are forced to choose between paying taxes and affording essentials, a choice that violates the moral and constitutional duty to protect their well-being.
  • Economic Stagnation: High property taxes deter business investment and reduce consumer spending, stifling South Dakota’s economic growth. Consumer spending drives 70% of the U.S. economy (Web ID: 5), but with $954 million extracted in taxes, families have less to spend at local businesses, slowing economic activity.
  • Threat to Homeownership: The risk of foreclosure due to unpaid property taxes threatens South Dakota families’ stability—progressive policies that ignore this reality are a constitutional betrayal, prioritizing government revenue over the right to property.
  • Social Inequality: Property taxes disproportionately burden low-income families, creating a regressive tax system that violates the constitutional principle of equal protection. In South Dakota, where small businesses are the backbone (99.9% of firms, SBA, 2024, Web ID: 5), this burden also stifles job creation and community growth.

Snarky Commentary: Progressive Socialists Posing as Americans

  • Tax Tyranny Unmasked: $954 million in property taxes (SD News Watch)—progressives call it “revenue,” I call it theft! The Fifth Amendment says no taking without just compensation, but try telling that to these fake patriots who’d rather see you homeless than cut their budget!
  • Due Process? What’s That?: Progressives let low-income families drown in taxes—3.5% rates in Custer County (SmartAsset, 2024)—while eggs hit $6.23/dozen (Post ID: 0). Where’s the due process when families can’t afford to eat? Liberty’s just a buzzword to these posers!
  • Economic Sabotage: High taxes kill growth—South Dakota’s economy stalls while progressives pat themselves on the back for “fairness.” Liberty means businesses thrive, not survive—progressive socialists wouldn’t know that if it hit them in the face!
  • Constitutional Con Artists: These progressive socialists pose as Americans, but they’re shredding the Constitution with every tax bill—Fifth Amendment, Fourteenth Amendment, who cares? They’ll tax you out of your home and call it “progress”!

Conclusion

High property taxes in South Dakota, totaling $954 million in 2021-22, are unconstitutional, violating the Fifth Amendment’s protection against property seizure without due process and just compensation, as well as the Fourteenth Amendment’s guarantee of equal protection. They force families into financial distress, threaten homeownership, and stifle economic growth by deterring business investment and reducing consumer spending. This unconstitutional burden undermines the liberty to own property free from government overreach—a core American value. It’s time to end this violation with a liberty-first solution: my Gross Receipts Tax (GRT) plan will eliminate property taxes, save homes, and spur growth. Join me at the Liberty Forum, April 19th, 2:00 PM, First Assembly of God, Rapid City, to fight for a constitutional, freer South Dakota! Share if you’re with me! #OdomForLiberty #SouthDakotaStrong #TaxReformSD #FreedomFirst