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South Dakota Sends County Sales Tax Bill to Governor as Property‑Tax Relief Package Advances

The vote marks a key step in a coordinated push to cut homeowner property taxes using new sales‑tax revenue.

Overview

  • The House approved SB 96 on a 48–19 vote to let counties levy up to a 0.5% sales tax for credits on owner‑occupied property taxes, sending the bill to the governor.
  • Lawmakers also sent a separate bill to the governor allowing cities to add a temporary sales tax of up to 1% for voter‑approved projects, which could push combined local rates near 9% where all options are used.
  • SB 245, which would capture the scheduled state sales tax increase from 4.2% to 4.5% and seed a homeowner relief fund with about $56 million, passed House State Affairs 11–2 and heads to the House floor.
  • HB 1253, amended to cap annual assessment increases at 5% with a market‑value reset every five years, passed committee 5–2 and moves to the Senate floor amid warnings about shifts to agricultural taxpayers and administrative costs.
  • State budget officials project SB 245 could deliver up to a 15% average reduction in household property taxes statewide, with larger savings in some counties, while business groups and commenters question distributional effects and lost budget flexibility.