South Dakota Governor Larry Rhoden recently announced a new plan called the Homeowner Tax Relief Program to help homeowners in the state pay lower property taxes. This proposal would allow counties to impose a small sales tax of up to 0.5 percent, with all revenue going directly towards reducing property taxes for homeowners.
Under this plan, county commissioners would have the choice to add the sales tax, and voters could request a public vote on the plan. The funds generated from the tax would be deposited into a Property Tax Reduction Fund and used to reduce taxes for owner-occupied homes first. If all homeowner taxes are paid off, leftover funds would then help other property types.
Governor Rhoden emphasized that this plan offers targeted relief to homeowners in specific counties, rather than a blanket statewide solution. The plan aims to capture tourism dollars to benefit local homeowners and provide meaningful, long-term property tax relief.
Rhoden will present this proposal to the legislature’s Property Tax Relief Task Force, which was recently formed to study tax relief options. The plan comes after lawmakers passed a temporary measure earlier this year, and Rhoden believes this new proposal will offer a more sustainable solution.
The task force will continue working on this proposal throughout the summer and fall, with the goal of implementing the tax relief plan in the next legislative session. Governor Rhoden’s initiative has been well-received by many lawmakers who are eager to provide property tax relief for South Dakota residents.
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