South Dakota Schools Brace as Property Tax Reform Proposals Threaten Funding

School officials in South Dakota are raising alarms over proposed property tax reforms that could cut crucial school funding. Of 19 recommendations under consideration, six directly threaten resources for local schools, leaving districts like Sioux Falls preparing for potential budget shortfalls.

By Riley Harrington November 12, 2025 12:04 pm

South Dakota property tax school funding property tax reform Sioux Falls schools education budget cuts legislative study committee property tax relief school district finances education funding South Dakota property tax proposals — Metro Services

Tension is mounting in South Dakota as school officials brace for the potential impact of proposed changes to the state’s property tax system.

A legislative study committee has put forward 19 options for lawmakers to consider in next year’s session, all aimed at providing property tax relief. But not all of these proposals are sitting well with educators.

Sioux Falls School District business manager Todd Vik warns that several of the recommendations could hit schools hard.

“Out of the 19 recommendations forwarded to the executive board, six would have a negative impact on schools,” Vik explained.

That’s a serious concern, as property taxes remain the primary source of funding for schools across the state.

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