(Pierre, SD) — A new South Dakota law capping property tax increases is squeezing city budgets and putting major projects on hold. Senate Bill 216 limits residential tax hikes to three percent from 2027 to 2031, and fast-growing cities like Sioux Falls, Harrisburg, and Tea say they’ll lose millions. Sioux Falls could see an eight-to-ten-million-dollar shortfall, while Harrisburg and Tea may each lose over four million. City leaders say that could mean delayed infrastructure, fewer amenities, and stalled quality-of-life projects like splash pads and dog parks. Local officials are urging lawmakers to revisit the plan and work together on more flexible solutions.
