Counties Can Use New Sales Tax Option to Reduce Property Taxes

With the passage Senate Bill 96, South Dakota counties can now reduce property taxes on owner-occupied homes by adopting an optional half-cent sales tax. Revenue from the tax must be used dollar-for-dollar to provide property tax relief, shown as a credit on homeowners’ tax bills.

The law, designed to address higher property tax burdens in areas that saw the largest post-pandemic home value increases, including the Black Hills and the Sioux Falls region has already been adopted in Meade County, while Pennington and Codington counties have begun considering it