STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

July 26, 1971

The Honorable Richard F. Kneip
Governor, State of South Dakota
Pierre, South Dakota 57501

OFFICIAL OPINION NO. 71-28

Legislative authority to exempt property from taxation

Dear Honorable Kneip:

You have requested my official opinion on the following question:

... What is the effect of the constitutional language concerning personal property taxes with respect to legislative authority to abolish or otherwise alter the application of this tax in South Dakota?

The question of constitutional and statutory exempt property is not a new question and has been passed on by several court decisions and by this office from time to time. The most recent opinion was in August of 1969 to The Honorable Lloyd Schrag. The concluding part of that opinion, I believe, answers your question:

... The legislature under Article XI, section 2, has complete authority to classify property for the purpose of taxation and to determine the taxability or exemption of the same.

I am not unmindful of the provisions of Article XIII, Section 5 of the Constitution relating to the irrepealability of laws or ordinances providing for the payment of interest or principal of any debt. This restriction, however, is imposed against cities, counties, towns and school districts or other subdivisions of government and is not a restriction on the Legislature which would prevent it from repealing all or a portion of the tax base.

Respectfully submitted,

Gordon Mydland
Attorney General