South Dakota Governor Larry Rhoden has launched a new webpage illustrating how much homeowners could save on property taxes if counties adopt his proposed optional half‑percent sales tax. The tool shows estimated reductions across the state, including average savings of $927 in Minnehaha County and $886 in Pennington County. The governor says the plan is designed to help areas where property valuations have surged without overhauling the entire tax system.
But the administration acknowledges the trade-offs. Bureau of Finance and Management Commissioner Jim Terwilliger says his own four-person household would pay about $160 more in sales taxes each year, while saving roughly $660 on property taxes — a net benefit of about $500, assuming his county opts in.
Some lawmakers question whether the approach fits all regions. Representative Erik Muckey says some counties may need relief for commercial or agricultural property instead. House Majority Leader Scott Odenbach is advancing a separate bill to moderate valuation spikes by using an eight-year market average.
With the legislative session entering its final two weeks, lawmakers say additional tax‑relief ideas could still surface as amendments. South Dakota’s state sales tax is currently 4.2%, returning to 4.5% next year.
