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.
GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
South Dakota
America’s Biggest Petrified Park Has Otherworldly Vibes Next To South Dakota’s Cowboy Capital – Islands
On the prowl for the most unique roadside stops across America? Then buckle up and cruise on over to Lemmon — aka, the “cowboy capital” of South Dakota. There, right off U.S. Highway 12, you’ll find an otherworldly roadside oddity known as the Lemmon Petrified Wood Park & Museum. The peculiar park is the largest of its kind, taking up an entire block in the heart of the town’s downtown area. “It’s touted as the ‘Biggest Petrified Wood Park’ in the world which makes me wonder how many there are,” one past visitor wrote in a Tripadvisor review. “My guess is the Lemmon one is the only one and that it’s an inside joke. Go see it.”
This outdoor gem was the brainchild of a local amateur geologist named Ole Sever Quammen, Roadside America reports. As the park’s name suggests, it was created using thousands of tons of petrified wood, which is the fossilized remains of trees, as well as bits of boulders and dinosaur bones. “The petrified wood that was used in this park is just stunning,” another park-goer shared on Tripadvisor. “It all came from the fields surrounding the town and they put their creative genes to work. Plus, they have a display of rocks that have [dinosaur] claw marks in them. A very interesting park and worth a bit of your time to walk around.”
Opened in the early 1930s, the park was eventually donated to the town in the 1950s, where it still stands for all to enjoy today. You can freely stroll the grounds throughout the year. However, the on-site museum and gift shop are only open in the summer from Memorial Day to Labor Day during the hours of 9 a.m. to 5 p.m.
See fossilized wood sculptures and more on display
Teeming with whimsy and wonder, this nook of the artsy, off-the-beaten-path town of Lemmon is definitely worth a visit if you’re in the area. Meander among the 100 or so unique petrified wood sculptures and other attractions scattered across the park. There’s certainly plenty to see, from a stunning waterfall fountain and wishing well to an imposing castle-like structure bedecked with dinosaur bones and lofty spires — some of which tower 20 feet above the ground.
If you visit in season, be sure to check out the indoor exhibits, too. The Petrified Wood Park & Museum doesn’t charge an admission fee, at the time of writing, making it one of the best free museums in America for a family day trip. “This is a great place to learn about the history of the area,” reads a Tripadvisor review. “The docents in the museum and gift shop are gems! There is a playground and public restrooms on the adjacent block, making this a nice place to stop for a break on a long drive.”
As if this place could get any cooler, you can even donate various artifacts and other historic relics to the park’s collection, though there’s no guarantee that your item will be put on display. If you want to take a gander at more dinosaur fossils, be sure to stop by the Grand River Museum before leaving town. It’s less than half a mile away and boasts an array of exhibits about the early ranching days, the history of Native peoples, and much more.
South Dakota
November Commemorations Remind South Dakota of an Unsettling Truth: Toxic Exposure Still Impacts Veterans and Military Families
SIOUX FALLS, S.D. (Dakota News Now) – For the 14th consecutive season, SDSU is in the playoffs.
With a record of 8-4 they will host 8-4 New Hampshire.
A little over four weeks ago South Dakota State was undefeated.
On Saturday they snapped a 4 game losing streak.
The Jacks are happy to keep playing football.
Graham Goering, SDSU wide receiver said, “We’re just blessed for any opportunity we are given. I think having some losses, there’s really never a doubt there actually and I think just seeing our name on screen ignites a little fire for everyone on the team. So obviously just blessed and excited for new season.”
Head coach Dan Jackson said, “This team has been close and galvanized for a long time, but what I do think it does it breathes a little bit of new life in them and last four weeks have been pretty heavy for them because they have been giving us all they have while at the same time not getting results they wanted. For them to be able to take a deep breath and remember who they are, and remember we can win and win in big moments, I think we have a really confident team that feels amazing right now not only after that play but how they competed the entire game.”
SDSU hosts New Hampshire at noon at Dana J. Dykhouse Stadium.
Copyright 2025 Dakota News Now. All rights reserved.
Sinclair Broadcast Group makes bid for Scripps TV stations
Cal Fire approach to SoCal’s wildfire crisis could make things worse, court says
High school basketball: Boys’ and girls’ scores from Tuesday
Hungary’s Orbán looks to meet Putin in Moscow amid Ukraine deal talks
National Parks to raise fees by $100 for international tourists to popular U.S. parks
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Video: ‘It Didn’t Have to Happen This Way:’ U.Va. Faculty Call for Review of Police Response to Protests
Hungary’s Orbán looks to meet Putin in Moscow amid Ukraine deal talks
National Parks to raise fees by $100 for international tourists to popular U.S. parks
War on badges: House GOP targets anti-police rhetoric amid ICE attacks
How a study on hormonal contraception and breast cancer was distorted
U.S. plans to cut ties with Boy Scouts. And, Comey and James’ criminal cases dismissed
-
Business1 week agoFire survivors can use this new portal to rebuild faster and save money
-
World1 week agoFrance and Germany support simplification push for digital rules
-
News1 week agoCourt documents shed light on Indiana shooting that sparked stand-your-ground debate
-
Science4 days agoWashington state resident dies of new H5N5 form of bird flu
-
World1 week agoSinclair Snaps Up 8% Stake in Scripps in Advance of Potential Merger
-
World1 week agoCalls for answers grow over Canada’s interrogation of Israel critic
-
Politics1 week agoDuckworth fires staffer who claimed to be attorney for detained illegal immigrant with criminal history
-
Business1 week ago
Amazon’s Zoox offers free robotaxi rides in San Francisco
