UPDATE: South Dakota lawmakers have just introduced an urgent wave of 28 property tax bills this legislative session, with more proposals expected as pressure mounts to tackle rising property tax rates. This session, which commenced earlier this month, is set to continue until March 2024, and lawmakers are racing against time to find solutions.
The state has witnessed a staggering nearly 70% increase in property taxes over the past decade, intensifying calls for immediate legislative action. Governor Larry Rhoden is backing a critical bill that would empower counties to implement a 0.5% sales tax specifically aimed at providing property tax relief. This proposal is part of a broader strategy to combat the financial strain on homeowners across the state.
Democratic leaders in the legislature have also announced plans to unveil their own property tax relief proposals soon, indicating a potential for bipartisan collaboration in addressing this pressing issue. Senate Assistant Majority Leader Carl Perry likened previous attempts at reform to a “game of Whack-A-Mole,” highlighting the challenges lawmakers face in achieving consensus.
“It’s going to be tough to get things exactly right, but we’re going to work at it,” Perry stated, underscoring the urgency of the situation.
The state government primarily funds itself through sales taxes, leaving counties and schools heavily reliant on property taxes. The proposed legislation aims to address the growing financial burdens faced by residents, who have increasingly voiced concerns over skyrocketing tax rates.
In addition, U.S. Rep. Dusty Johnson, a Republican gubernatorial candidate, has proposed using funds from an expected increase in the state sales tax rate to ease property tax pressures. In 2023, the sales tax rate was reduced from 4.5% to 4.2%, but this reduction is set to expire in 2027.
The stakes are high, as local communities face significant revenue losses. For instance, the city of Harrisburg could lose nearly $3 million in revenue between 2027 and 2031 due to current caps on tax growth, according to Deputy City Administrator Heath VonEye. “The costs for infrastructure and services get pushed onto existing homeowners,” he warned.
Lawmakers are considering a host of bills aimed at property tax reform. Notable proposals include:
– **Senate Bill 85**: Requires elections for schools to exceed property tax limits.
– **House Bill 1168**: Offers a property tax credit for private school or homeschool expenses.
– **Senate Bill 12**: Provides missed property tax refunds for veterans and surviving spouses.
Additionally, Senate Bill 118 aims to allocate at least $100 million annually from state sales tax revenue for a homeowner tax rebate program.
However, not all proposed measures have succeeded. Senate Bill 99, which aimed to shift public education funding from property taxes to sales taxes, was defeated in committee amid concerns over its implications.
As legislators push through these proposals, the urgency to stabilize property taxes continues to grow. Residents and local governments alike are watching closely, as decisions made in the coming weeks could have lasting impacts on the financial landscape of South Dakota.
Stay tuned for further updates as this developing story unfolds.
