PIERRE — The House of Representatives defeated a bill Wednesday that would have allowed local governments to raise property taxes with voter consent.

Under current law, property tax increases are capped at 3 percent or the rate of inflation, whichever is less. If passed, HB 1099 would have given local governments a two-year window to set a new tax baseline, which would then be subject to the limit.

After an amendment approved by the Legislature Wednesday, such an increase would have to be approved in a popular referendum by 60 percent of those voting.

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The bill’s sponsor, Rep. Thomas Deadrick, R-Platte, said the bill is necessary for some local districts whose property tax levels are too low for their necessary services.

“Some taxing districts were never where they should have been in the beginning,” Deadrick said. “In my particular districts, we have townships that couldn’t put gravel on the roads anymore because they started out too low, and prices have increased.”

Opponents argued the bill was the start of a slippery slope to higher taxes.

“I don’t think it’s going to do a lot of damage, but I don’t think it’s going to do a lot of good,” said Rep. Bernie Hunhoff, D-Yankton, the minority leader. “It takes constant vigilance to make sure we don’t overdo it on property taxes. It is a hated tax among the public.”

“My concern is that over time, we’re going to pave the way for yet another property tax revolt,” said Rep. Brock Greenfield, R-Clark.

The House rejected HB1099 36-32. House Democrats voted against the bill 17-7, while House Republicans voted for it 25-19.

Deadrick did not file a motion to reconsider the bill and said it is dead for this session.