A South Dakota legislative task force is exploring ways to reduce homeowners’ property taxes by at least 50%. At a meeting in Sioux Falls, lawmakers discussed cutting budgets, reallocating funds, and introducing new taxes to reach that goal.
Governor Larry Rhoden’s new law, capping growth in home assessments at 3% annually for five years, takes effect next week. He’s also proposed an optional county-level sales tax to offset property taxes. Another idea suggests shifting school funding to a new 1% state sales tax on previously exempt goods and services.
The task force, formed during this year’s legislative session, will continue evaluating options through the summer. Meanwhile, local officials warn against drastic moves that could harm essential services. Property taxes on homes have risen nearly 39% since 2020.
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