(PIERRE, SD) — The South Dakota House has approved a plan aimed at cutting property taxes.
Lawmakers passed Senate Bill 96 Thursday on a 48 to 19 vote. The measure would let counties adopt a local gross receipts tax of up to half a percent. The money would be used to reduce property taxes on owner-occupied homes. Supporters say the plan gives counties local control and could shift part of the tax burden to visitors.
Representative Mike Derby of Rapid City says that’s especially true in tourism areas like Pennington County. Derby says he likes the idea of people visiting from out of state helping pay local property taxes.
But critics say the plan amounts to a new sales tax that affects everyone. Representative Will Mortenson of Fort Pierre called it a “reverse Robin Hood” that could shift money toward wealthier counties. And Sioux Falls Democrat Erik Muckey says renters may see little benefit.
If a county adopts the tax, voters could still force a public vote on the ordinance. The bill now heads to Governor Larry Rhoden, who praised the proposal and says it could help deliver the largest property tax cut in state history.