RAPID CITY, S.D. (KOTA) – Is relief on the way for South Dakota homeowners?
If the recommendations by the South Dakota property tax task force turn into reality, homeowners could see more than $348 million in relief, as well as a 25-percent cut in their taxes.
The recommendations were released Wednesday, following the task force’s last meeting.
To provide that relief, the South Dakota Legislature will debate the following recommendations when the 2027 session begins in January:
An immediate $120 million tax rebate to homeowners by using collected but unspent tax dollars.
A 5 percent cut in state government spending, estimated to be $123 million in savings; applied to property tax reduction.
Allowing the sales and use tax rate reduction to expire in July 2027, using the additional $105 million to reduce homeowner property tax.
Adding 25 percent of future state revenue growth to replace property tax revenue.
“This plan provides critical, long-term reforms that finally reduce the burden of property taxes on families while still funding local services and honoring our commitments to seniors and veterans. It’s time to make tax cuts a priority for property owners,” state Senator Chris Karr, task force member, said.
Other recommendations include expanding tax relief programs for seniors and disabled veterans; mandating elections for opt-outs and bond issues; pushing video lottery revenue to education and limiting public school capital project spending.
