Taxes

In the offseason, lawmakers are trying to figure out how to deliver promised property tax cuts while keeping government functioning.

The plans would utilize taxpayer dollars to develop areas that would surround or directly benefit new fast-food locations as a draw to expand into Rapid City.

While the state improved its national ranking for teacher pay during the 23-24 school year, it’s still in the bottom five. However, advocates say future solutions aren’t going to come easy as the Legislature looks to cut a major education funding source.

When it comes to discussion over how to address rising property taxes, a philosophical discussion at the heart of state politics came into play. Skepticism around economic development is creeping into South Dakota.

A legislative task force is looking to cut property taxes by almost $900 million. A tax shift might be on the table, but some lawmakers say it might not be a one-size-fits-all approach.

Sioux Falls Mayor Paul TenHaken said the city is planning to reduce $8-10 million of funding in the city’s budget. He said the root cause is a property tax relief bill the state Legislature passed this year.

One of the biggest battles in state finances in recent memory has been what to do with the state property tax. At the most recent interim meeting though, cuts up to 50 percent were sought.

South Dakota US Senator Mike Rounds said the Republican effort to make federal tax cuts from 2017 permanent will help the average South Dakota family. Rounds said the effort will save the average South Dakota family $2,400 annually.

The group wants to lower property taxes. But some on the task force worry its biting off more than it can chew.

Membership of a legislative task force to take a comprehensive look at property taxes in the state is now set. The executive board approved the 18-members of the task force Wednesday.