A legislative task force focused on property taxes is organizing itself into three working groups.
The group wants to lower property taxes. But some on the task force worry its biting off more than it can chew.
The three working groups will look at the education funding formula, local government spending and state government spending, respectively.
Each will have an emphasis on reform or spending cuts to reduce property taxes.
“I think how we structure this is going to help determine the potential success for this," said Sen. Chris Karr, R-Sioux Falls, the chair of the group. "Again, I’m not looking for a silver bullet—I never expect to find one of those—but I do think we can make vast improvements.”
The group’s work is part of a larger legislative initiative to lower property taxes—lawmakers were able to pass one bill this past session to tamp down the rise in assessed values.
Other members want the group to look at alternative revenue sources, like advertising sales tax exemptions, increasing video lottery and bank franchise taxes, as well as looking closer at dynasty trusts. The state recently reported $815 billion in assets held in trusts registered in South Dakota.
Gov. Larry Rhoden has proposed a bill to allow counties the option to implement sales tax collection to offset property taxes that go to county governments.
The Comprehensive Property Tax task force is the third property tax focused legislative work group in four years.
Republican Sen. Jim Mehlhaff said he’s concerned the task force could get involved in too many directions to do something tangible.
“I have concerns that we’re going to get down a bunch of bunny holes that don’t yield any meaningful results as far as legislation and doing something that’s going to help property taxpayers," Mehlhaff said.
Mehlhaff said he would like the group to focus on the education funding formula.
The group’s next meeting is scheduled for June 25. The Comprehensive Property Tax task force will meet once a month until October.
