South Dakota has two new laws aimed at reducing homeowner property taxes, but one of them depends on whether counties choose to opt in. Beginning in July, counties will be allowed to adopt up to a half‑percent local sales tax and use the revenue to lower the county portion of homeowner property taxes. It’s the first time counties in the state have been permitted to levy a sales tax.
The Governor’s Office estimates 39 counties could collect enough to eliminate the entire county share of homeowner property taxes, with average savings of about $660 per homeowner. But reaction from county commissions ranges from strong support to hesitation. Some leaders in fast‑growing counties like Lincoln, Custer, and Pennington say they want to move quickly, while others in rural areas worry the change simply shifts the tax burden.
A second new law will use revenue from next year’s scheduled increase in the state sales tax rate to reduce school‑imposed property taxes statewide.
County commissions are expected to debate the sales‑tax option in the coming months, with some considering board action and others leaning toward a public vote.
