The day-long property tax committee hearing reflects the challenges of navigating the subject. As South Dakotans want relief, the state is already a low-tax haven.
The meeting included some ninth-inning surprises entering the afternoon. That included a late proposal from Senate Pro Tempore Republican Chris Karr.
He won support for an item in the annual budget that would deliver ongoing property tax relief yearly, based on growth estimates in the general fund.
“It’s proportionated to the economic strength of South Dakota. If the economy is doing well, we’re collecting and growing in our revenues, we’re giving more relief back to the people of South Dakota," Karr said. "The concept here is the age-old adage of planting a tree twenty years ago and now.”
Meanwhile, another late recommendation came from Republican Speaker of the House and gubernatorial candidate Jon Hansen. A 5 percent cut to the general fund. That’s about $120 million.
“The fundamental reason for this request is if we want real tax relief, it must come from cuts to government spending,” Hansen said.
That proposal also passed, albeit narrowly. These are both recommendations that would require the full legislative body and the governor’s signature for approval.
Senate Republican leader Jim Mehlhaff voiced skepticism on the Hansen plan.
“A lot of the rhetoric you hear, you’d think we’re the state of New York or California," Mehlhaff said. "That’s going to come with a lot of pain, which frankly, I think the folks that are calling for this should bring their proposals forward. I’d like to see them.”
At the same time, Fort Pierre Republican Will Mortenson offered his own solution.
In a press statement, he proposed cutting owner-occupied taxes by 35 percent while increasing the sales tax rate by less than one percent. That would place South Dakota at the 18th lowest sales tax in the nation.
This proposal was rejected in the last legislative session, and Mortenson is not a member of the 2025 comprehensive property tax task force.