Taxes pay for a lot in society, but South Dakota’s property tax has become something of a bear for the Legislature to slay. In the offseason, lawmakers are trying to figure out how to deliver promised cuts while keeping government functioning.
At the most recent property tax task force meeting, public testimony was sharp and pointed — property taxes are a challenge for South Dakota homeowners to pay. At the same time, local stewards of tax dollars were more measured.
Without an income tax, South Dakota is reliant on property tax dollars to fund law enforcement, schools, and government functions. This puts lawmakers in a bind as the reality of budgeting meets the voices of voters.
Take McPherson County Auditor Lindley Howard, a real-world example of how walking this tightrope challenges communities. She and her colleagues audited their books against those of similar sized counties.
“We found that our spending was very similar," Howard said. "In some areas we are spending less than similar counties, but is that due to being good stewards, or are we spending less by putting off updates that will result in possibly larger future expenditures? We have done what we can to be good stewards, we have cut what we can, and we are attempting to maintain that balance between providing service and keeping the taxpayer obligation as low as possible.”
Some like Gene Loeschke, Brown County director of equalization, said its time for a frank conversation about the lawmaker goals and how to achieve them.
“We’ve looked at Pierre, Spearfish, Sioux Falls, all similar to Aberdeen," Loeschke said. "You start looking at little towns with no tax base and very high levees, you can’t save the same kind of reduction with the same kind of point – there’s no one-size-fits-all that says we can get 25 percent, or we can get 50 percent of we can get 10 percent.”
This comes as state lawmakers set a goal of cutting property taxes by nearly $900 million statewide.