(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.

South Dakota Searchlight is part ofStates Newsroom, the nation’s largest state-focused nonprofit news organization.

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The South Dakota Lottery offers multiple draw games for those aiming to win big.

Here’s a look at April 28, 2026, results for each game:

Winning Mega Millions numbers from April 28 drawing

14-36-41-47-66, Mega Ball: 15

Check Mega Millions payouts and previous drawings here.

Winning Millionaire for Life numbers from April 28 drawing

11-21-34-39-45, Bonus: 05

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.

SIOUX FALLS, S.D. (Dakota News Now) – South Dakota Attorney General Marty Jackley has announced the South Dakota Supreme Court has affirmed the conviction and sentence of a South Dakota man after an attempted threat of felony terrorism.

“Threats against the President of the United States and public officials are taken seriously,” said Attorney General Jackley. “We will continue to prosecute individuals who seek to harm or intimidate public officials and their families.”

According to court docs, Lucian Celestine first contacted the FBI in September 2019, claiming he was hearing voices instructing him to kill President Trump.

In June 2020, Celestine attempted to purchase a sniper-style rifle through an online marketplace and requested a scope capable of shooting up to 600 yards.

The rifle’s seller was a Brookings Police Officer acting as a private citizen and became concerned about Celestine’s behavior. The officer reported the interaction to the South Dakota Division of Criminal Investigation.

Police later contacted Celestine as President Trump was due to visit Mount Rushmore for the 2020 Independence Day fireworks celebration. During the encounter, Celestine said he had contacted the FBI and admitted he had recently obtained a rifle.

Officers located a rifle, ammunition, and targets in the truck of his vehicle.

After being taken into custody in Rapid City, Celestine told investigators that the voices in his head instructed him to kill the President. He told police of a plan to go to Mount Rushmore and position himself above the monument.

He was then arrested and indicted for threat of felony terrorism.

Celestine entered a guilty plea in November 2024 for Attempted Threat of Felony Terrorism. In March 2024, the Pennington County Circuit Court sentenced him to two and a half years in the South Dakota Penitentiary with credit for time served.

Celestine later appealed his conviction and sentence, but the South Dakota Supreme Court affirmed the circuit court’s sentence.