Some property tax proposals won’t work

Like many of you, I’ve felt the sting of rising property taxes—especially as a homeowner. The burden keeps growing, and for many families, it’s becoming unmanageable. I hear your frustration, and I share it.

South Dakota relies heavily on property taxes to fund our K-12 schools and local government services. In fact, our state constitution requires it. But that doesn’t mean we can’t demand a better, fairer system—one that doesn’t crush single-family homeowners in the process.

Let’s be clear: some of the proposals being floated right now are dangerous. I’ve looked at them closely—and they’d do more harm than good. You’ve probably heard the phrase “do no harm.” Well, a few of these ideas could seriously harm the essential services we all depend on—like schools, snow removal, road repairs, volunteer fire departments and law enforcement

Here’s why:

There are two main tax “buckets” in South Dakota.

• Property taxes (agricultural, commercial and residential), stay local. They fund your city, your county, schools and your emergency services. Local property taxes are a key component of school funding, especially for teacher salaries, school facilities, and classroom resources. Without them, districts would be heavily dependent on state funding, which could limit local control over schools.

• Sales taxes go to the state. Sales tax in South Dakota pays for state-level services like education, Medicaid, corrections, public safety, and state government operations. If we eliminate property taxes and replace them with higher sales taxes or state-level fees, we risk losing local control. Why? Because that money would go to the state—and it would be the state, not your local county or city, deciding what gets funded. That means critical services like road repairs, snow removal and emergency response could be subject to approval in Pierre instead of by your local leaders.

Think about this: South Dakota has 66 counties, each with an average of three to five commissioners and dedicated staff who know their communities best. That’s nearly 200 local commissioners working every day to ensure services meet your community’s needs. If property tax revenue disappears, there’s no guarantee those communities will get the funding they need to keep your families safe and your roads clear. 

We have made progress, but we’re not there yet! Over the past five years, I’ve worked hard to bring this issue to the forefront. Last session, over 20 tax reform bills were introduced. Sadly, all but one were killed—many in committee, some on the chamber floor.

What frustrated me most? I believe some lawmakers purposely delayed real tax reform so they could use the issue in their campaigning and ads. They chose politics over people. That’s not why you elected us to serve and I’m not okay with putting politics above the people!

Let’s talk about real, commonsense options. Here are just a few ideas I think deserve consideration and continued thought:

• Property tax caps: The governor’s bill limits property valuation increases to a 3 percent countywide average. But averages aren’t equitable. To be fair, we must treat taxpayers equally. That’s why I proposed capping increases on each individual single-family home at 3 percent. Averages don’t offer much relief when your own tax bill jumps by 20 percent or more.

• Fixing the assessment process: Nobody would see wild, unexplained spikes in their home value year after year with a fixed assessment process in place.

• Circuit breakers: Offer relief to taxpayers whose property taxes exceed a certain percentage of income.

• Homestead relief: I passed legislation in 2021 to expand eligibility for seniors and disabled residents. And thanks to new changes this year, to once again increase property values and income levels, even more people will qualify starting July 1, 2025. If that’s you or someone you know, please check out d.dor.gov to see if you qualify.

• Fairer tax structure: Right now, single-family homeowners carry the biggest share of the property tax burden. That’s not sustainable. We need to look at expanding the base so everyone pays their fair share across all classes of properties.

I know eliminating property taxes sounds good—who wouldn’t want that? But here’s the hard truth: without a guaranteed and stable revenue replacement, we’d either have to cut critical services or give up local control to the state. I can’t support that—and I don’t think most South Dakotans would either.

What I can support is true tax reform that brings relief to homeowners, respects local control and keeps our communities strong. This isn’t just policy—it’s personal. And I won’t stop fighting for a solution that works for all of us.

It is a privilege to be your commonsense voice in Pierre!