South Dakota
Public forum highlights potential property tax political storm • South Dakota Searchlight
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
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.
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.
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.
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.
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.
“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.
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.
“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.
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ABERDEEN, S.D. – Businessman Toby Doeden, whose campaign for governor has hinged largely on the elimination of all property taxes, has links to real estate investment companies that would save more than half a million dollars annually under that plan, according to public records.
Though Doeden said his experience in business is his primary qualifier for governor, little was known about the extent of his ventures and wealth.
Searches of the Better Business Bureau, court records and the state of South Dakota’s consumer protection portal paint a generally positive picture: Doeden’s companies are in good standing and have not had any major outstanding legal or civil issues.
His current statement of financial interest submitted to the South Dakota Secretary of State’s Office lists him as an owner, employee and shareholder, partner or shareholder of 24 companies.
Here’s a snapshot of Doeden’s business activities, based on public records:
- Doeden owns the Aberdeen Chrysler dealership in Aberdeen and Redfield Ford in Redfield.
- At least 75 properties linked to his companies in Aberdeen and Groton have a current taxable portfolio value of more than $34 million and a property tax commitment this year of at least $558,129. Those properties include single-family homes, commercial buildings and multi-family buildings. Many of the mortgages for those properties were taken out on five-year terms. At least 20 of them have been fully satisfied, with several others partially paid.
- Doeden was a partner in Plaza Rentals when the city of Aberdeen implemented a Tax Increment Financing (TIF) district for several apartment buildings that the company purchased and redeveloped.
- His Tenth Street Properties is the deed holder to the building housing Street Corner Urban Market – another LLC tied to Doeden – in Aberdeen, as well as Legends Liquor and Casino. Others are Grand Casino, Royal Casino, and Mulligan’s Sports Bar and Casino, which is also located in the complex owned by Tenth Street Properties.
- One of his businesses was involved in the zoning of a building for 150 bitcoin mining units near his Aberdeen dealership. That zoning permit, which was issued to son Jackson Doeden and company Plaza Rentals, was initially granted in February 2022 for 70 units and was upgraded to 150 units in June 2022, according to Aberdeen News and minutes from the Aberdeen Board of Zoning meetings. Aberdeen Community Development planner Eric Miller told News Watch that as far as he knew, the mining operation was still active. Bitcoin mining units are large, complex computers that generate units of cryptocurrency through computing efforts.
- Doeden also runs a charitable organization called the 4J Foundation.
(Photo by Joshua Haiar/South Dakota Searchlight)
Doeden touts his business experience as his biggest qualification for governor, often calling himself the “outsider” and the “businessman.”
Because no candidate received 35% of the vote in the June 2 primary, Doeden and Gov. Larry Rhoden will meet July 28 in a runoff election.
Doeden has largely self-funded his campaign by loaning it another $2 million this year, in addition to the $2 million he put up in 2025.
Doeden’s fast rise to success seems to have started roughly six years ago.
The South Dakota Secretary of State’s office shows that he took over Plaza Rentals as its registered agent in 2020. That’s also when he took ownership of the Aberdeen Chrysler Center after serving as general manager for nine years and gradually purchasing stock.
All but two of the 27 companies Doeden is linked to were incorporated in or after 2020. Doeden credits his innovative thinking to his success during the pandemic, citing a risk-taking approach and careful planning.
Doeden’s acceptance of a Paycheck Protection Program loan during the pandemic has come under scrutiny during the campaign. Federal records show Doeden’s company received $1.1 million for Aberdeen Chrysler Center, and Doeden said during a debate that 150 jobs were saved at his company from the program.
“I am extremely proud of the work my team and I have been able to accomplish over the years at Doeden Investment Group. Being able to give back to the people and state that have given me so much has been the honor of a lifetime,” Doeden said in a statement to News Watch, declining to answer specific questions for this story.
PIERRE, S.D. — A governor-appointed board unanimously approved higher prices and a higher income limit Monday for an affordable housing program.
The South Dakota
Governor’s House
program sells two- and three-bedroom homes built by inmates at Mike Durfee State Prison in Springfield that are shipped across the state to eligible buyers.
The program also offers daycare models, which can be owned by daycare providers or nonprofit organizations. For buyers in rural areas with less than 5,000 people, the authority provides
DakotaPlex
units intended to be used as duplexes, triplexes or quadriplexes.
Buyers are responsible for buying a building permit, finding a lot, laying the foundation and flooring, and hooking up utilities and appliances.
This year’s change is the “smallest price increase we’ve had in many, many years,” according to Mike Harsma, who heads the Governor’s House program for South Dakota Housing.
On July 1, the start of the new fiscal year, the homes will be priced as follows:
- Two bedroom: $89,000, up from $86,000, or a 3.49% increase.
- Three bedroom: $99,000, up from $96,000, or a 3.13% increase.
- Dakotaplex two bedroom: $99,000, up from $97,000, or a 2.06% increase.
- Dakotaplex three bedroom: $109,000, up from $106,000, or a 2.83% increase.
- Daycare: $99,000, up from $96,000, or a 3.13% increase.
Last year
, units increased at least 6%. The rise in prices this year is due mostly to increased fuel costs, according to Chas Olson, executive director of the South Dakota Housing Development Authority. The cost of delivery for a home is included in the total price of a Governor’s House.
Photo courtesy of South Dakota Housing Development Authority
“Whether we’re moving a Governor’s House from Springfield to Sioux Falls or we’re moving it across the state to Buffalo, South Dakota, we get the same amount for that moving fee,” Olson said. “The cost of fuel, where it is now and kind of the uncertainty around that, we had to build in a little bit of a cushion just to be sure that we weren’t taking too big a loss on the fuel.”
Buyers of Governor’s Houses must meet income requirements. The board approved a higher income limit, now at 100% of the state’s median income, regardless of household size.
Families that make up to $103,400 now qualify for the program. In previous years, buyers in one- to two-person households could qualify if they made $72,380 or less and households of three or more people could qualify if they made $82,720 or less.
“It’s hard to get people qualified at those income levels,” Olson said. It had been about 14 years since that limit was adjusted, he said, “and with the cost of everything now, I mean, it was just time.”
Mortgage assistance program
Board members also approved a program that’s modeled after a
piece of legislation
that failed earlier this year in the Legislature. It’s a mortgage assistance program for qualifying buyers of manufactured homes.
The authority also provides
down payment assistance
for traditional homes. Down payments for manufactured homes are often higher than a typical mortgage down payment, according to Amy Eldridge, of the authority.
A
manufactured home
is a mobile home that’s built on a permanent framework. The homes must have all required utilities, including plumbing and climate control.
Eligible buyers can apply for a low-interest loan of up to 50% of their mortgage down payment from the assistance program, with total assistance not exceeding $10,000. The income limit for the program is $124,080.
Olson hopes to see the program available to interested buyers within the next month.
“We just need more homes at lower price points,” he said, “and we need ways to get that done.”
The South Dakota Lottery offers multiple draw games for those aiming to win big.
Here’s a look at June 20, 2026, results for each game:
Winning Powerball numbers from June 20 drawing
16-20-44-48-50, Powerball: 15, Power Play: 2
Check Powerball payouts and previous drawings here.
Winning Lotto America numbers from June 20 drawing
08-14-31-41-52, Star Ball: 04, ASB: 03
Check Lotto America payouts and previous drawings here.
Winning Dakota Cash numbers from June 20 drawing
02-09-15-27-34
Check Dakota Cash payouts and previous drawings here.
Winning Millionaire for Life numbers from June 20 drawing
01-10-16-30-31, Bonus: 04
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.
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