MITCHELL, S.D. (Mitchell Now) — Davison County residents will have an opportunity to learn more about a new state law that could allow the county to collect an additional sales tax and use the money to reduce a portion of property tax bills.
The Davison County Commission will hold a special meeting to discuss Senate Bill 96, which was approved by the South Dakota Legislature during the 2026 legislative session.
The meeting will be held Tuesday, Sept. 22, at 6:30 p.m. at the Davison County Fairgrounds, 3200 W. Havens Ave. in Mitchell.
SB 96 gives county commissioners authority to enact a gross receipts tax of up to one-half of 1%, commonly referred to as a half-cent sales tax.
Money collected through the tax would be placed in a property tax reduction fund. Davison County says the revenue would be used to offset owner-occupied property tax bills for the county portion only.
That distinction means the program would not reduce every portion of a homeowner’s property tax bill. Property taxes can include levies from several local taxing entities, while the relief generated through SB 96 would initially apply to the county levy on qualifying owner-occupied property.
Representatives from the South Dakota Department of Revenue will be present at the special meeting and will be available to answer residents’ questions about SB 96 and how the law works.
The new state law does not automatically impose a half-cent sales tax in Davison County. Instead, it gives county commissioners the authority to establish a tax of up to one-half percent by ordinance. State law also includes provisions allowing such an ordinance to be referred to voters.
Under SB 96, the South Dakota Department of Revenue would administer and collect the tax if Davison County adopts one. Revenue would then be returned to the county for property tax reduction as prescribed by state law.
Residents interested in how an additional county sales tax could affect purchases, how much property tax relief homeowners could receive, or how the tax would be implemented can attend the Sept. 22 meeting.
The full text and legislative history of SB 96 are available from the South Dakota Legislature — Senate Bill 96