RAPID CITY — Some frustrated taxpayers attended a public forum Saturday to tell state officials they’re taking the wrong approach to taxation.
Several of the roughly 100 attendees said legislators and Gov. Kristi Noem should raise the sales tax rate instead of reducing it, and use the money to replace some of the local government revenue currently supplied by property taxes.
“I don’t think there’s any other way around getting our property taxes taken care of unless we raise the sales tax,” said audience member Beth Paulson, of Custer.
Rapid rise in South Dakota home prices is ‘not sustainable,’ economist says
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One of the panelists, Donald Olstad, a Hot Springs businessman and former school board member, estimated that a several-percentage-point increase in the sales tax rate could wholly replace property taxes.
“And that would be a great debate,” Olstad said.
But elected officials and some political activists are moving in the opposite direction.
Gov. Kristi Noem started a push for lower sales taxes during her reelection campaign in 2022, when she promised to exempt groceries from the state sales tax.
Legislators rejected that proposal in 2023 and instead adopted their own proposal to reduce the state sales tax rate from 4.5% to 4.2%. The reduction is scheduled to expire in 2027, unless legislators make it permanent.
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Meanwhile, a Democratic-led citizen group is circulating petitions to put a measure on the Nov. 4 general election ballot that would remove state sales taxes from grocery purchases.
Sales, tourism taxes discussed
Some forum attendees suggested increasing the state tourism tax. That’s a 1.5% tax on hotels, campgrounds and some other tourism-related activities.
Beyond the state sales tax and tourism tax, cities can impose up to an additional 2% sales tax, plus another 1% entertainment tax on items such as alcohol, restaurants, hotels and events.
Sales tax revenue goes to cities and the state. Property taxes go primarily to counties and schools.
State Rep. Trish Ladner, R-Hot Springs, is trying to convince her fellow legislators to do something about rising property taxes. She introduced property tax relief bills each of the last two legislative sessions in Pierre, with limited success.
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She also organized the forum Saturday in a lecture hall on the South Dakota Mines university campus. When discussion turned to raising the sales tax rate in order to reduce or stabilize property taxes, Ladner said it’s an idea worth considering.
“The thing about sales tax, too, is that the tourists would help pay for it. I like that,” Ladner said. “I’m just saying we need to be open to alternative methods.”
Ladner and Olstad were panelists at the forum. Other panelists were Matt Krogman, a Brookings real estate agent and lobbyist for the South Dakota Association of Realtors; Rep. Mike Derby, R-Rapid City; Rep. Dennis Krull, R-Hill City; and Pennington County Commissioner Ron Rossknecht. The moderator was Garth Wadsworth, of the Elevate Rapid City economic development group. Participating in a public forum on property taxes April 20, 2024, at South Dakota Mines in Rapid City were, from left, moderator Garth Wadsworth of Elevate Rapid City, Brookings real estate agent and lobbyist Matt Krogman, state Rep. Trish Ladner, R-Hot Springs, state Rep. Mike Derby, R-Rapid City, Hot Springs businessman Donald Olstad, state Rep. Dennis Krull, R-Hill City, and Pennington County Commissioner Ron Rossknecht. (Seth Tupper/South Dakota Searchlight)
Homeowner taxes up 47% since ’17
Though the two-hour event was civil, many audience members vented their displeasure with property taxes. Statistics from the state Department of Revenue show the property tax burden has fallen increasingly on homeowners and commercial property owners in recent years.
The trend was exacerbated after 2017. Since then, property tax payments have gone up 47% for owner-occupied homes and 36% for commercial property, while rising 3% for agricultural property.
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One factor in the trends was a change from market to productivity-based valuations for agricultural land. The implementation period for the change concluded in 2019, after the Legislature adopted it in 2009. At the time, lawmakers were concerned that surging prices for farm and ranch land were unfairly inflating tax valuations.
Another factor was the COVID-19 pandemic, when South Dakota experienced an influx of remote workers and other homebuyers fleeing pandemic restrictions in other states. According to research by the Dakota Institute, high demand for houses helped push the average list price in the state 36% higher from 2020 to 2023, even after accounting for inflation.
Because tax valuations for houses are tied to the market, some South Dakota homeowners have experienced several years of double-digit valuation increases. And those steep valuation increases have driven their property taxes higher.
Olstad said Gov. Noem’s focus on attracting new residents to the state has been a factor in that.
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“This probably doesn’t sound right, but I think we should ‘close the gate,’” Olstad said. “I’m not in favor of the governor inviting everybody.”
Other ideas for property tax relief
Raising the sales tax or tourism tax rate wasn’t the only idea floated during the forum.
Multiple attendees encouraged Ladner to reintroduce a failed bill she sponsored during the last legislative session.
The bill would revert property valuations back to their 2020 levels for single-family, owner-occupied homes purchased before then. Excess taxes paid in the intervening years would not be refunded, but future tax increases would be capped at 3%.
One person suggested repealing some of the dozens of sales tax exemptions in state law and capturing the extra revenue for property tax relief.
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Some sales tax exemptions are broad, such as the one for items purchased to be resold. Those include packaging for products and items that will become an ingredient or component of another product.
Other exemptions are narrow, such as an exemption for services performed by rodeo promoters, stock contractors, announcers, judges and clowns.
Rep. Derby encouraged greater participation in existing property tax relief programs, which he said are underutilized. Those include help for disabled veterans, senior citizens and people with paraplegia. Applications are available from county directors of equalization or county treasurers.
There was broad agreement at the forum among panelists and attendees that a failure to rein in property tax increases for homeowners could have negative economic consequences for the state.
Krogman, the real estate agent and lobbyist, cited examples of three properties in Brookings that he said experienced year-over-year tax valuation increases from $343,000 to $473,000, from $333,000 to $445,000, and from $322,000 to $432,000.
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“I’m just afraid if we can’t figure something out, the opportunity of owning a house is going to become more and more difficult,” he said. Matt Krogman, a Brookings real estate agent and lobbyist, speaks during a public forum April 20, 2024, at South Dakota Mines in Rapid City alongside state Rep. Trish Ladner, R-Hot Springs. (Seth Tupper/South Dakota Searchlight)
WASHINGTON — Former Florida Congressman Matt Gaetz announced Thursday he’s withdrawing as President-elect Donald Trump’s planned nominee for attorney general days after securing the appointment.
Gaetz’s path to Senate confirmation was highly unlikely following years of investigations about alleged drug usage and payments for sex, including with an underage girl. He submitted his resignation to Congress last week.
“While the momentum was strong, it is clear that my confirmation was unfairly becoming a distraction to the critical work of the Trump/Vance Transition,” Gaetz wrote in a social media post. “There is no time to waste on a needlessly protracted Washington scuffle, thus I’ll be withdrawing my name from consideration to serve as Attorney General. Trump’s DOJ must be in place and ready on Day 1.”
Trump posted on social media afterward that he “greatly” appreciated “the recent efforts of Matt Gaetz in seeking approval to be Attorney General.”
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“He was doing very well but, at the same time, did not want to be a distraction for the Administration, for which he has much respect,” Trump wrote. “Matt has a wonderful future, and I look forward to watching all of the great things he will do!”
The House Ethics Committee voted along party lines Wednesday not to release its report on Gaetz, following more than three years of investigation. Gaetz has repeatedly denied any wrongdoing, including the allegations that he had sex with a minor.
Meetings with senators
Trump’s running mate, Ohio Sen. J.D. Vance, spent Wednesday shuffling Gaetz between meetings with Republicans on the Senate Judiciary Committee, which would have held his confirmation hearing. Republicans will control the Senate in the new session of Congress beginning in January.
South Carolina Sen. Lindsey Graham, the top Republican on the Judiciary Committee, wrote on social media that he respected Gaetz’s decision to withdraw his name from consideration as AG.
“I look forward to working with President Trump regarding future nominees to get this important job up and running,” Graham said.
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The office of Sen. John Kennedy of Louisiana, fellow Senate Judiciary Committee Republican, declined to comment.
Gaetz’s future is unclear, given that he resigned from the U.S. House last week and notified the chamber he didn’t plan to take the oath of office for the upcoming 119th Congress.
He first joined the House in January 2017 and led efforts to remove former House Speaker Kevin McCarthy from that role last year, setting off a month-long stalemate within the House Republican Conference over who should lead the party.
The race to fill his empty seat in a special election has already attracted six candidates, mostly Republicans in a heavily conservative-leaning district.
Gaetz could jump into the race for his old seat, possibly winning a place back in the House of Representative next year following the special election.
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AG oversees Department of Justice
The attorney general is responsible for overseeing the Department of Justice, which includes the federal government’s top law enforcement agencies as well as prosecutors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, Drug Enforcement Administration, Federal Bureau of Investigation, Federal Bureau of Prisons, Office for Victims of Crime, Office on Violence Against Women and U.S. Attorneys’ offices are among the 40 entities within the DOJ and its 115,000-person workforce.
Congress approved $37.52 billion for the Department of Justice in the most recent full-year spending bill.
Trump had two attorneys general during his first term as president. He first nominated former Alabama Sen. Jeff Sessions, whom Trump later fired amid disputes, and then Bill Barr.
BROOKINGS, S.D. — — Jadyn Donovan finished with 23 points and 15 rebounds to help No. 16 Duke hold off South Dakota State 75-71 on Sunday.
Donovan hit 11 of 17 shots from the floor and added four assists and four steals for the Blue Devils (4-1). It was the second double-double this season for the sophomore.
Ashlon Jackson totaled 17 points and four assists for Duke. Vanessa de Jesus scored 13 off the bench.
Brooklyn Meyer scored 25 points on 9-for-13 shooting to lead the Jackrabbits (3-1). Paige Meyer had 12 points and seven assists. Haleigh Timmer scored 11 on 5-for-7 shooting. Kallie Theisen grabbed 12 rebounds but did not score.
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Jackson had nine points to guide the Blue Devils to a 23-18 advantage after one quarter.
Donovan scored off a rebound to give Duke a 10-point lead with 90 seconds left before halftime. But Brooklyn Meyer had the only basket from there and South Dakota State trailed 38-30.
The Jackrabbits grabbed the lead at 47-45 after Timmer’s layup and two free throws by Meyer. Donovan answered with a dunk off a rebound and finished off a three-point play, and Reigan Richardson and Toby Fournier sank shots in the final 44 seconds to send the Blue Devils to the fourth quarter with a 54-50 lead.
Mesa Byom hit a 3-pointer with 7:38 left to play to pull South Dakota State even at 59. Donovan answered with another rebound basket and a jumper, and the Blue Devils stayed in front from there.
The Jackrabbits stayed within striking distance by hitting 8 of 16 shots from beyond the arc while Duke sank just 3 of 11.
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The Blue Devils return home to play Belmont on Thursday.
—— Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here. AP women’s college basketball: https://apnews.com/hub/ap-top-25-womens-college-basketball-poll and https://apnews.com/hub/womens-college-basketball
BROOKINGS, S.D. (AP) — Jaden Jackson scored 19 points as South Dakota State beat Southern Miss 101-76 on Wednesday night.
Jackson had 10 rebounds for the Jackrabbits (4-1). Oscar Cluff scored 16 points while shooting 7 of 7 from the field and added nine rebounds. Kalen Garry shot 3 for 8 (1 for 5 from 3-point range) and 7 of 7 from the free-throw line to finish with 14 points.
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The Golden Eagles (2-2) were led by Neftali Alvarez, who posted 13 points. Christian Watson added 12 points and two steals for Southern Miss. Denijay Harris also had 11 points and 12 rebounds.
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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
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