A bill creating a homeowner tax reduction fund unanimously passes through the Senate Taxation Committee.

Senate Bill 125 creates a fund designated toward property tax relief. It specifies dollars in the fund can’t be transferred to the state’s general fund.

Sen. Randy Deibert is the bill’s prime sponsor. He said it’s the “first step” towards meaningful relief for South Dakota homeowners.

“This is the first step in the process to develop the fund. The second step would be to find fund dollars to put in here," Deibert said. "And the third step would be to determine how to distribute it. So, one step at a time; this is the base step."

It requires the Department of Revenue distribute property tax relief. The department opposes that idea, calling it “impractical” during public testimony.

The idea for the fund originated in a legislative summer study that looked into the property tax issue. Legislators on the study unanimously supported the idea.

SB 125 heads to the Senate floor.