Pennington County commissioners have approved a new county sales tax aimed at providing property tax relief for owner-occupied homeowners under a recently enacted state law.
During their regular meeting Tuesday, commissioners unanimously approved Ordinance 796, which imposes a 0.5% county gross receipts tax and use tax in Pennington County.
Commission Chair and District 2 Commissioner Ron Weifenbach emphasized that the ordinance is not intended to increase county revenue.
The measure was adopted under the provisions of Senate Bill 96, passed by the South Dakota Legislature in 2026. The law gives counties an option to generate revenue through local sales taxes while reducing property taxes on owner-occupied homes.
Revenue generated by the tax will be collected through the South Dakota Department of Revenue, which will redistribute the funds back to the county to be placed in a property tax reduction fund. The amount of property tax relief homeowners receive will depend on sales tax collections.
The new tax is scheduled to take effect Jan. 1, 2027. Property owners are expected to see the resulting tax reduction reflected on their 2028 property tax notices.
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