How New Legislation Could Lower Property Taxes In South Dakota

For years, South Dakotans have enjoyed some extra money in our wallets thanks to not having to pay state income tax. We continue to be one of just nine states that enjoy that status.

But, to make up for that lack of tax revenue, residents of the Mount Rushmore State have to pay property taxes at a rate above the national average. The most recent figures show that property tax rates in South Dakota (1.06%) are the 18th highest in America. That translates to $2,724 in taxes annually for a $257,400 home, which is the state's median value.

Governor Larry Rhoden is hoping to do something to bring those rates down.

Thursday (February 26), the governor unveiled a county map that shows how much South Dakotans could save in property taxes under SB 96, which is sponsored by the governor's Committee on Taxation, and is currently making its way through the legislature in Pierre.

According to the map, residents in South Dakota's five largest counties would see their property tax rates reduced by 11%-23%.

Minnehaha County: 20% reduction ($927 estimated savings on $325,000 home)
Pennington County: 22% reduction ($886 estimated savings on $325,000 home)
Lincoln County: 12% reduction ($579 estimated savings on $325,000 home)
Brookings County: 23% reduction ($1,108 estimated savings on $325,000 home)
Brown County: 18% reduction ($956 estimated savings on $325,000 home)

SB 96 gives counties the option to replace their share of property taxes with a half-cent sales tax. County commissions could implement this tax cut, or it could be referable to a public vote.