South Dakota is the latest state to tackle the question of rising property taxes, with a new conflict arising between its governor and legislators on how to achieve that goal.
Property tax payments across the state increased by nearly 40% during the past four years. According to the South Dakota Searchlight, Gov. Larry Rhoden is unimpressed with 19 property tax relief recommendations submitted by a legislative task force. These ideas include an online system for property tax relief applications from elderly and disabled people, instead of requiring paper forms, cutting state spending and shifting the savings into property tax relief, and taking money from the state’s reserve accounts and a housing infrastructure fund and using the money as property tax credits for homeowners.
“I’ve realized that there’s not much I’ve seen that I could support,” said Rhoden, whose proposal of enabling counties to create an optional half-percent sales tax to generate revenue that would reduce the county portion of property taxes on owner-occupied homes. Under Rhoden’s plan, revenue that is left over would reduce commercial and agricultural property taxes.
The 19 legislative proposals plus Rhoden’s plan will be debated when the legislature reconvenes on Jan. 13. One proposal that could receive a surplus amount of attention comes from Rep. Jon Hansen, the speaker of the state House of Representatives and the vice chairman of the Legislature’s Comprehensive Property Tax Task Force, who is seeking a 5% cut in spending from the state’s general fund.
“Real tax relief begins with right-sizing government,” said Hansen, who is challenging Rhoden in next year’s Republican gubernatorial primary. Rhoden was previously the lieutenant governor who inherited the governor’s job earlier this year when Kristi Noem stepped down to become President Trump’s Secretary of Homeland Security.
Rhoden has opposed Hansen’s plan as being extreme, declaring, “I share the desire to cut property taxes. But slashing health care, education and public safety is not the way to do it.”
