Yay! We’re robbing Peter to pay Paul!
At least, that seems to be the cheer coming from the South Dakota House of Representatives as they voted yesterday to take an increase in the state sales tax – because the sunset on the sales tax reduction was never removed, despite many efforts – and to dump it all into property taxes, via Senate Bill 245.
According to an article on the Dakota Scout website:
“This is our shot,” House Speaker Jon Hansen said of Senate Bill 245, of which he sponsored. “This is our shot to answer the call of the people on property taxes.”
and..
The bill returns to the Senate, where it will be debated there.
SB 245 is a companion bill to SB 96, which passed Thursday and went to Gov. Larry Rhoden’s desk. SB 96, which Rhoden proposed last year, would enable the counties to enact a new sales tax of up to a half a percent. The revenues would be required to offset property taxes.
Jon Hansen declares This is our shot? This was not a shot. This was more of a rimshot.
Yes, there are some people unhappy about property taxes, but they weren’t out there demanding “Create a new sales tax! And while you’re at it, raise the regular sales tax, and do nothing to pay for the functions of government!” as the solution. When you start congratulating yourselves because you decided to tax your way out of problems, that’s not a solution. That’s just a re-arrangement of deck chairs.
The same basic problems still exist. You need an expansion of the tax base, and the Republican way to accomplish that used to be growth and a healthy economy. Things that legislators should be paying more attention to. Instead of congratulatory backslapping over moving money around.
“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill.
I support lower property taxes. Our elderly should be able to stay in their own homes and not be forced to sell. Perhaps a bill to lower taxes on homes owned by retired people and raise them for the working class who can better afford an increase.
And still one of the lowest sales taxes in the nation, even after the increase.
With the lowest wages, too.
Raise them on the working class? The same working class being crushed by cost of living increases, a languid pace of pay raises, and skyrocketing childcare costs? That’ll go over like a lead balloon.
How about instead we raise property taxes on any land that is owned by LLCs with out of state beneficial owners, Private Equity firms, LPs, REITs, and other monied interests that are price gouging the working class out of farmland and home?
Please share an example of someone being forced to sell. If this was actually happening, these stories would be all over the place. That is a farce.
^This. It’s just a straw-man argument used to justify blatant hnwi-welfare, just like abolishing estate taxes (that already exempt the first $15 million). Until individuals show up with receipts, the arguments sound like complete hogwash.
Any property tax reduction will be due to a new revenue stream. A new revenue stream is most likely a new tax.
We can’t reduce budgets to ZERO, nor even enough to really put a dent in property tax.
If we don’t want a new revenue stream, then maybe we are satisfied with the status quo?
We’ve talked about income tax? No go on that. We’ve talked about a $1.50 receipt fee? That’s even worse than the proposed sales tax.
Or you could encourage economic development that brings in new revenue! New business revenue = new taxes generated for everyone! But then you’d have to have stuff built. Can’t have that, right?
#BANANAS #NIMBY
Yes, I agree. Economic development is needed and would help….over time.
This is a reduction that owner-occupied owners will see beginning with their 2027 tax bill, and then SB96 would be an additional reduction for the 2028 tax bill.
As a young South Dakotan this is BS. None of this does anything to help us, in fact we will be subsidizing taxes for the richest South Dakotans. They have the money to pay these taxes. I would support this concept if it was more targeted but it goes to show both Governor Rhoden and Speaker Hansen have no long term vision and are only focused on short term political gains. For those reasons, I’m supporting Rep. Dusty Johnson for Governor.
Sounds like a staffer.
I don’t think so. but I agree with w what they’re saying
Why are the elderly our focus? They created this mess. They accumulated the debt. They kicked the can down the road. They destroyed the American dream of home ownership for our youngest generations. Why reward those responsible for generational theft?
Cuz they vote at a higher rate than the non-elderly.
Until they find out they need a passport.
This idea of pitting young vs old is somebody playing politics. Absolutely sounds like a campaign staffer –
Someone with inexperience chirping away and making bad arguments. Blaming our tax situation on older people? Suggesting just young people should get help? Bad ideas. Listen, Dusty can still win – just not on this issue. His plan was a little light on relief anyway.
Not a staffer. I am just sick and tired of entitled boomers complaining because they crapped in their bed. Young people are losing the American dream because boomers bought into trick down your d— economics which led to suppressed wages and subsidizing costs to make people think they were getting ahead. They kicked the can down the road and we are all paying for it. End social security and put it towards the debt and get them back to work.
Would you support it if it was Dusty’s idea?…
The richest people will get the biggest tax reduction and the poorest folks will get to pay for it.
South Dakota needs a state income tax. Nobody is talking about that.
It’s sadly comical to watch the decision makers add another twist to the property tax system pretzel, while ignoring the fact that we don’t tax an entire sector of our economy: financial assets, e.g. stocks, bonds, CD’s, trusts.
Please elaborate Anonymous (March 10, 2026 at 6:13 pm)
Are you talking about income tax, personal property tax, investment tax, bank franchise tax?
Yes the poorest folks who rent their homes are already paying more in property taxes because the rates are higher, often double, for non-owner occupied dwellings. They just don’t know they pay property taxes, they think their landlords do. This is like the homeowners who think they don’t pay property taxes, the bank does.
The only people who actually know they pay property taxes are the ones who write checks at the county treasurer’s office twice a year. What’s great is that the first half of property taxes is due April 30th, and early voting in the primary starts April 17th, and the second half is due October 30th, and early voting in the general election starts in September. This means you can stop in at the courthouse, pay your property taxes and go vote in the same trip. It’s an awesome arrangement for increasing the voter turnout of the people who know they pay property taxes.
Hasn’t Dusty also proposed using this sales tax revenue for property tax relief?
Yes, Hansen stole that idea and ran with it. The original idea came from Tony V last session.
Jon Hansen, just another tax and spend Republican.
I learned long ago that may things can be true. I believe the following are all true:
1. Property taxes are really high and those increases accelerated since Covid and the inflation caused by the fed printing so much money.
2. The two bills advancing will, indeed, help lower property taxes.
3. The county tax is definitely a new tax. Good that tourist outsiders will be paying it. Bad that all of us who spend money in SF and RC won’t get the advantages those counties do.
4. Over time, the counties with the help of the Legislature will lift valuation caps, and we will once again have an acceleration of property taxes on top on the new sales taxes we now have.
5. Anytime we elect and appoint people to spend other people’s money on public projects, there is little incentive to stop them from spending. Kristi Noem is a fine example of that. Too easy to drop $200 million of others people on an ad buy. In this case basically for her own self promotion.
So congrats on the property tax cuts, temporary as they may be.
One trick pony culture war legislator which expectedly shows very little productivity in helping South Dakotans with everyday challenges such as affordability.
Jon Hansen earns a legislative career award of seeking solutions to problems that do not exist.
Mr. Hansen looks like some kind of supercharged bible thumping overgodder in that picture, but it is a swell picture of him with a book. He should wear that on a spandex tee shirt and sell it in the streets.
grudznick thinks some of you fellows are not giving young Mr. Hansen credit for being a tax cutter, as he did not raise any taxes like some want to do. Now, the tax he is cutting is a meaningless slice of dried watercress, but it is a cut.
It is not the right fruit and doesn’t address where some groups and those other groups need to get their monies, because without the monies things will stop. Monies are the juice, and this is but a dried apricot at best.
Hansen stealing? Taking credit for other’s work? Not a first.
*Maude land
*USD Professor firing
Two more at minimum. Not original.
Increasing cost while slowing growth is the exact definition of stagflation. Hansen and his Freedumb caucus sheep just built it directly into state law.
This state government is a bunch of criminals. Thanks to Kristi Noem and her political machine who ran every decent Republican out of Pierre.
Looking forward to the state turning blue by 2030.
Right because we admire Minnesota, Oregon, Illinois, California, etc, etc, etc! NOT!
At least those blue states pay their own way, including ours. Wages are much higher which is why many people move there to get rich and come back home to live like kings.
Me. Those states annually subsidize South Dakota’s state budget. That needs to end!
Exponential increased taxes on Casino establishments, winnings and all cannabis establishments and sales should have been in the discussion! Why not?
Sales tax revenue is plummeting. Economy is likely heading towards recession. Are we winning yet?
Cool! We were planning on making another massive shopping trip to a Minnesota Costco and load up after staying with friends and family. Clothing and groceries are not taxed there.
We can haul quality lumber and building supplies back to South Dakota on the trailer.
Dusty had the same plan that you are complaining about: Per Searchlight: Johnson would pay for his proposal with $110 million in estimated annual revenue that will be available when the state sales tax rate goes back to 4.5%. Lawmakers reduced it to 4.2% in 2023 but scheduled the reduction to sunset after June 30, 2027.
So when Dusty does it, it’s ok, but when Hansen does it, it’s wrong?
Who are these elderly people who are being driven from their homes because their property taxes are too high? Do they not have family who could have helped them use the programs which were and are already in place?
https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/#sale
“To Qualify for a Property Tax Refund:
Be 65 years old on or before January 1, 2024, or disabled at any time during 2024;
Live alone and have a yearly income of $16,566 or less OR live in a household
whose members’ combined income is $22,484 or less; and
Owned the house you are now living in for at least three years , OR you have been
a resident of South Dakota for five years or more.”
Or…was the property tax one of many increased costs that caused their expenditures to exceed their income.
So now they live in a apartment and will pay more via sales tax for all their necessities. Next they argument will be that they can’t afford any “wants” because their “needs” are too high.
My parents sold their home because they couldn’t manage it any more. No because of property taxes.
I know a lot of old people because I am one and not one of them left their home over property taxes. About half of them left because moving to an apartment or twin home was an upgrade for them. WHERE ARE THESE PEOPLE? Has anyone seen and spoken to them? Did that person tell them of current programs to freeze their assessments?
If you are one of these one of these people…come forward and provide the details (keep the names…we’ll check your honestly later). F’n clown show!
Doby Toeden wants to go even further. What is his excuse? Can’t afford to retire? Mismanage his COVID investments?
Let the chaos begin. Let the bastardization of sales taxes out of the cage because…you know the property tax relief being offered will never be enough. Is it the RINOs or the RIBOs who will sink our ship and making democratic beliefs more appealing. RIBO (Republicans In Belief Only)
I think all the elderly people being driven out of their homes must all be the women who haven’t been able to work, drive, travel out of the country or borrow library books since the day they got married, because they couldn’t get social security cards, drivers licenses, passports, or library cards when their names changed..
Or is that just in California?