MITCHELL, SD (Mitchell Now) — Six South Dakota counties will begin implementing a local-option property tax relief program Jan. 1, 2027, using revenue from a new 0.5% county gross receipts tax to reduce homeowners’ property tax bills.
According to an announcement from Gov. Larry Rhoden’s office, the participating counties are Custer, Fall River, Lawrence, Lincoln, Meade and Pennington. Davison County is not among the six counties listed.
The program was authorized under Senate Bill 96. Revenue will go into each participating county’s property tax reduction fund to provide credits against property taxes on owner-occupied homes.
The South Dakota Department of Revenue explains that counties may adopt a tax of up to 0.5%, with all revenue dedicated to property tax relief for owner-occupied properties. The relief appears as a credit against the county portion of the property tax bill.
Rhoden said the Department of Revenue is assisting counties with implementation. He described the legislation as the largest property tax cut in state history.
The governor’s office also directs residents to a county savings map showing estimated relief under SB 96 and a separate measure, Senate Bill 245.
According to the announcement, updated tax guides will be available after Jan. 1, 2027. Businesses and residents can find tax schedules through the Department of Revenue or call 800-829-9188.