Rapid City, SD – Beginning Jan. 1, 2027, six South Dakota counties will roll out a local‑option property‑tax reduction that promises direct relief to qualifying homeowners. The program, authorized by Senate Bill 96, was championed by Governor Larry Rhoden and passed by the state legislature earlier this year.
How the program works
Each participating county – Custer, Lawrence, Lincoln, Meade, Pennington and Fall River – will collect a 0.5% gross receipts tax on business revenue. The revenue generated will be deposited into a dedicated property‑tax reduction fund. County officials will then use those funds to issue tax credits that lower the amount owed on owner‑occupied property tax bills for eligible residents.
Governor Rhoden’s perspective
Governor Rhoden called the measure “the largest property‑tax cut in state history.” He emphasized that the relief aligns with his administration’s commitment to keep families’ hard‑earned money in their pockets and to support the economic vitality of South Dakota’s communities.
Implementation timeline
County boards will have the authority to set or adjust their gross receipts tax rates on either Jan. 1 or July 1, 2027. The South Dakota Department of Revenue will publish updated tax guides after Jan. 1, 2027, and will make information about local tax rates available through its online resources and a dedicated contact line.
Projected savings
State officials released a map illustrating projected savings for homeowners in each of the six counties. While exact dollar amounts vary by county and property value, the map shows that many residents can expect a noticeable reduction in their annual property‑tax bills.
Broader tax legislation
The property‑tax relief program is part of a larger package of tax legislation enacted by the legislature this session. The package includes additional measures aimed at simplifying tax administration and providing further relief to South Dakota taxpayers.
What residents should do
Homeowners who believe they qualify for the credit should watch for the Department of Revenue’s updated guides and may contact the agency directly for assistance. County tax offices will also provide information on how to apply for the credit once the program launches.
Community impact
Local leaders anticipate that the tax relief will bolster family finances, encourage homeownership, and stimulate economic activity in the participating counties. By reducing the tax burden on homeowners, the program supports the traditional family values that are the foundation of strong, thriving neighborhoods.
For more details, residents can visit the South Dakota Department of Revenue website or contact their county tax office.
Original reporting: KOTA (Gray) – local — read the source article.
