The South Dakota Senate rejected a bill that would have expanded the property tax exemption for permanently and totally disabled veterans and their surviving spouses.
KOTA reports Senate Bill 126, which would have increased the exemption level from $200,000 to $300,000, was defeated in a 14-20 vote.
Sen. Joy Hohn (R-Hartford), who introduced the bill, observed that 22 other states already offer a full property tax exemption for 100% disabled veterans. She added South Dakota’s housing costs have been rising in recent years, with average home value ranging from $300,000 to $350,000.
Opponents of the bill argued it unfairly shifted the property tax burden onto other homeowners without addressing the problems in the state’s property tax system. In defending her bill, Hohn cited data from the South Dakota Veterans Council that found roughly 4,000 veterans, or 0.47% of the state population, now use the exemption statewide and no more than 7,000 could qualify.
“These are permanent and totally disabled veterans,” Hohn said. “Once again, that is a rating that is something that one can never recover from.”
