PIERRE, S.D. (MITCHELLNOW) A legislative study committee began work on examining the methodology of calculating property taxes in South Dakota. But that doesn’t mean you should expect to see a property tax rate cut.
Committee Co-Chair Senator Randy Diebert of Spearfish opened the hearing with some caution on that subject. Senator Diebert emphasized that the purpose of the study is to look at how property taxes are calculated and not whether or not the actual level of property taxes are too high.
Property tax rates have also increased rapidly in some areas, like Sioux Falls, because of a high demand for housing. That has created problems for homeowners living on a fixed income. Property taxes are a perennial issue for those in the ag community and a significant input cost for producers annually.
County officials are responsible for assessing property valuations for tax purposes which means there could be differences across the state. The goal of the summer study committee is to make sure that the assessment and calculation of property taxes is fair and uniform across all counties across the state.
Property taxes have been on the rise as property values increase. Even with that, State Revenue Secretary Mike Houdyshell says the tax burden in the Rushmore State is comparatively low. Houdyshell says that South Dakota has the fourth lowest tax burden in the nation, if all taxes and fees are taken into consideration and not just property taxes standing alone.
The Committee will meet several times before wrapping up the study in October.