South Dakota
Here’s how much South Dakotans could save on property taxes after accounting for higher sales taxes
(SOUTH DAKOTA SEARCHLIGHT) – Estimates of homeowner savings abounded recently as South Dakota lawmakers and Gov. Larry Rhoden approved property tax reduction legislation.
It’s been difficult, however, to find two other estimates: 1) the extra money consumers will spend to fund reduced property taxes with higher sales taxes, and 2) the net savings for homeowners after their extra sales tax spending is subtracted from their property tax savings.
South Dakota Searchlight’s effort to answer those questions led to these estimates: The average South Dakota homeowner’s total savings if they receive both forms of property tax relief could be $1,080 annually. Meanwhile, the average South Dakota household could spend $360 more per year if subjected to both sales tax increases. When it’s all said and done, that’s a net yearly savings of about $720 for homeowners.
To learn how Searchlight arrived at those rough estimates, keep reading. But first, a bit about the new laws.
The new laws
One of the new laws allows the statewide sales tax rate to return to 4.5% next year, after a temporary reduction to 4.2% since 2023. The revenue from the increase will be allocated to the school funding formula to reduce the amount of property taxes schools need from local homeowners.
The other new law allows counties to impose their first-ever sales tax at a rate of up to 0.5%. That revenue will go toward credits to reduce the county’s portion of homeowner property taxes.
Estimating property tax savings
To estimate average property tax savings for homeowners, Searchlight asked the state Department of Revenue for the average assessed value of owner-occupied homes in the state. The department did not provide that figure.
But it did provide the total taxable value of all owner-occupied properties for taxes payable this year: $62,211,360,002.
The department also provided the total number of owner-occupied properties in the state: 253,263.
Dividing the total taxable value by the number of owner-occupied properties yields an average value of $245,639.
“However,” the department said, “this number may include both houses and additional structures such as unattached garages.” The department added that the impact of those additional structures on the average valuation is minimal.
The owner-occupied classification, which lowers the levy applied to an owner’s primary residence, can be applied to a single-family dwelling, an attached or unattached garage, and the parcel of land where a home stands. The new property tax reduction law applies specifically to single-family dwellings.
To account for the minimal impact from additional structures, Searchlight rounded up to $250,000 as the average taxable value of homes in the state.
Revenue from the increase in the statewide sales tax rate is expected to reduce property taxes by $1.683 for each $1,000 of a home’s taxable value, according to the state Bureau of Finance and Management. For the average home with a taxable value of $250,000, that’s about $420 of savings.
Homeowners’ savings if their county enacts a 0.5% sales tax to fund property tax credits will vary across the state, because counties have different property tax rates and varying levels of potential sales tax revenue. But the Governor’s Office has estimated that the average savings will be $660. The office arrived at that number by taking the total, estimated new revenue generated if every county implemented the plan, and dividing it by the number of owner-occupied properties, which should approximate the average savings per homeowner.
Thus, the total annual property tax savings for the average homeowner receiving both forms of relief would be $420 plus $660, which adds up to $1,080.
Estimating extra sales tax spending
To arrive at an estimated extra amount of spending for the average South Dakota household (meaning a house or apartment) on higher sales taxes, Searchlight first needed an estimate of the average household’s annual sales-taxable spending.
Searchlight spoke with the Dakota Institute, a nonprofit economic research and analysis organization in Sioux Falls. The institute suggested dividing the total of certain categories of taxable sales (excluding categories that are likely purchases by businesses) by the state’s 382,302 occupied housing units (including apartments), resulting in an estimate of about $82,000 in annual taxable spending per household. However, institute CEO Jared McEntaffer noted many of those purchases were still probably made by businesses and tourists, so the true average is lower.
Gov. Larry Rhoden’s finance commissioner pointed Searchlight to a U.S. Bureau of Labor Statistics report stating that the average U.S. household spent $77,280 in 2023. Sales tax does not apply to some expenses, such as prescription drugs or mortgage payments. After subtracting such categories of spending that are unlikely to be taxed and adjusting for inflation since 2023, Searchlight settled on $45,000 as the estimated average annual sales-taxable spending per South Dakota household.
If that average household is subjected to both of the new sales tax increases, it would be the equivalent of an additional 0.8% tax. On $45,000 of spending, that would be $360 of extra sales taxes annually.
In a household subjected to only the 0.3-percentage-point statewide sales tax increase (without a county sales tax), that would be $135 of extra sales taxes annually.
Estimating net savings, and complications
If the average homeowner saves $1,080 annually on property taxes from both forms of relief and spends $360 annually in extra sales taxes, that homeowner’s annual net savings would be $720.
Homeowners in counties that do not enact a sales tax for property tax relief would receive, on average, the $420 in property tax relief from the statewide sales increase and spend $135 on higher sales taxes, for a net savings of $285.
Those are rough estimates. Actual situations will vary widely across the state. Household spending varies by income. Homes in rural areas are typically valued lower than in urban areas. Counties have different property tax rates, called levies. Some counties may choose to enact a sales tax for property tax relief, and others may not. In counties that do adopt a sales tax, the amount of revenue available for property tax relief will vary. And people who live in counties that do not adopt a sales tax will likely travel and spend money in counties that do.
And, for households that rent rather than own their home, it’s all just a sales tax increase.
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BURKE, S.D. – A Nebraska man who died in a single vehicle crash Tuesday evening, 10 miles east of Burke has been identified.
Preliminary crash information from the South Dakota Department of Public Safety indicates Roy Robert Cadwallader, 71, of Stuart, Nebraska, the driver of a 1939 Chevrolet JB Coupe, was traveling eastbound on Highway 18 when the vehicle left the roadway and entered the ditch. The vehicle struck an approach, went airborne, then rolled.
Cadwallander died at the scene.
The crash occurred at approximately 7:24 p.m. Tuesday, June 9 near mile marker 296, about 10 miles east of Burke in Gregory County. Seat belt use remains under investigation, according to the SDDPS.
The South Dakota Highway Patrol is investigating the crash. All information released so far is only preliminary. The Highway Patrol is an agency of the South Dakota Department of Public Safety.
Our newsroom occasionally reports stories under a byline of “Mitchell Republic.” Often, the “Mitchell Republic” byline is used when rewriting basic news briefs that originate from official sources, such as a city press release about a road closure, and which require little or no reporting. At times, this byline is used when a news story includes numerous authors or when the story is formed by aggregating previously reported news from various sources. If outside sources are used, it is noted within the story.
The South Dakota Lottery offers multiple draw games for those aiming to win big.
Here’s a look at June 13, 2026, results for each game:
Winning Powerball numbers from June 13 drawing
03-13-44-50-53, Powerball: 02, Power Play: 4
Check Powerball payouts and previous drawings here.
Winning Lotto America numbers from June 13 drawing
06-13-31-35-48, Star Ball: 07, ASB: 05
Check Lotto America payouts and previous drawings here.
Winning Dakota Cash numbers from June 13 drawing
04-10-18-28-30
Check Dakota Cash payouts and previous drawings here.
Winning Millionaire for Life numbers from June 13 drawing
03-05-11-13-49, Bonus: 01
Check Millionaire for Life payouts and previous drawings here.
Feeling lucky? Explore the latest lottery news & results
Are you a winner? Here’s how to claim your prize
- Prizes of $100 or less: Can be claimed at any South Dakota Lottery retailer.
- Prizes of $101 or more: Must be claimed from the Lottery. By mail, send a claim form and a signed winning ticket to the Lottery at 711 E. Wells Avenue, Pierre, SD 57501.
- Any jackpot-winning ticket for Dakota Cash or Lotto America, top prize-winning ticket for Lucky for Life, or for the second prizes for Powerball and Mega Millions must be presented in person at a Lottery office. A jackpot-winning Powerball or Mega Millions ticket must be presented in person at the Lottery office in Pierre.
When are the South Dakota Lottery drawings held?
- Powerball: 9:59 p.m. CT on Monday, Wednesday, and Saturday.
- Mega Millions: 10 p.m. CT on Tuesday and Friday.
- Lucky for Life: 9:38 p.m. CT daily.
- Lotto America: 9:15 p.m. CT on Monday, Wednesday and Saturday.
- Dakota Cash: 9 p.m. CT on Wednesday and Saturday.
- Millionaire for Life: 10:15 p.m. CT daily.
This results page was generated automatically using information from TinBu and a template written and reviewed by a South Dakota editor. You can send feedback using this form.
America is in a race, one that will define global economic leadership for the next decade. China is aggressively
positioning
itself as a center for artificial intelligence development and deployment. The winner will capture enormous competitive advantages in innovation, job creation and geopolitical influence. But there’s a detail often overlooked in this high-stakes competition. None of it happens without reliable critical infrastructure, such as power and data centers.
Winning the AI race is fundamentally about establishing the critical infrastructure that powers innovation. AI systems rely on data centers, and data centers require electricity. If the United States intends to remain competitive, we must be able to build and power that infrastructure efficiently and affordably. That requires thoughtful policy, modernized permitting and a clear commitment to growth.
Data centers are not secondary to the tech economy. They are the foundation. The nation that builds and controls the most advanced, reliable and affordable data center infrastructure will lead in AI development and deployment.
Here in South Dakota, we have the essential components to build this critical infrastructure. Our affordable energy, vast land and strong workforce create the necessary conditions for establishing data center facilities that can compete globally. Tech employment in our state has grown
17 percent
in recent years, outpacing many parts of the country. This is a signal that South Dakota can support and sustain the specialized environment required for advanced infrastructure development.
But having these advantages is not enough. The window of opportunity is finite, and other states are mobilizing their own competitive advantages. If we want South Dakota to be where America builds the critical infrastructure that powers the AI future, we must act decisively. Supporting and enabling this infrastructure development is not a favor to industry. It is imperative for our state and our nation.
Establishing critical data center infrastructure in South Dakota delivers immediate and long-term benefits for our communities. Big Watt alone currently contributes roughly $900,000 a year in kilowatt-hour taxes directly to local schools and could eventually provide more than $160 million annually as future phases come online. Its payroll already totals several million dollars a year, with nearly all staff drawn from within the region. This kind of investment can strengthen schools, support local businesses and create lasting economic opportunity.
Additionally, construction and development of this infrastructure alone can support hundreds of electricians, contractors, engineers and skilled trades workers. These are good-paying jobs that circulate dollars through local businesses. For rural parts of our state, that kind of investment can be transformative.
At Oahe Electric Cooperative, we see how thoughtful planning and load growth can support grid upgrades while protecting affordability for the families and small businesses we serve. We also know South Dakota is already a leader in renewable energy, with 29 wind projects totaling 3,476 megawatts, along with growing solar capacity and grid storage resources. As demand for electricity grows, we are taking on new generation responsibly through an all-of-the-above energy strategy that rests on a reliable foundation of natural gas and coal, accompanied by wind and solar resources. Just as importantly, data centers should be required to pay the upfront costs associated with their onboarding so existing consumers are not left subsidizing the infrastructure needed to support large-scale new load. When planned responsibly, this approach can support grid upgrades and new generation in ways that maintain reliability and protect affordability for South Dakota’s households and small businesses.
The broader significance is strategic. By establishing critical infrastructure for the technology economy, South Dakota positions itself as essential to American competitiveness. We attract complementary investment, develop specialized workforce expertise and build advantages that strengthen our state’s position in the global economy for decades. If our policies create uncertainty or make infrastructure development
financially unworkable
, capital will flow to other states where the path is clearer and the commitment is stronger. We must transform from a state watching the technology race to a state where the race is won.
Our state must act now to establish the critical infrastructure that will power American innovation for the next decade. This is our moment to position South Dakota as essential to winning the technology race. With practical regulations and a clear commitment to supporting data center infrastructure development, we can ensure that South Dakota is where America builds the advanced infrastructure that leads the world in artificial intelligence. The technology shaping the global economy will be powered by the infrastructure we build today. South Dakota can be that foundation.
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