The Pennington County Commission has unanimously approved a new half-percent county sales tax aimed at reducing property taxes for owner-occupied homeowners.
Commissioners approved Ordinance 796 during Tuesday’s regular meeting. The measure creates a 0.5 percent county gross receipts sales and use tax under Senate Bill 96, a state law passed by the South Dakota Legislature earlier this year.
Under the plan, revenue collected from the new sales tax will be administered through the South Dakota Department of Revenue and returned to Pennington County. Those funds will be placed into a dedicated property tax reduction fund to help offset taxes on owner-occupied homes.
County officials say the amount of tax relief homeowners receive will depend on the total sales tax revenue generated.
Pennington County joins Meade County in adopting the local tax option authorized by the new state law.
The sales tax is scheduled to take effect January 1st, 2027, with property owners expected to see the first tax reductions reflected on their 2028 property tax statements.
