RETAILERS ASSOCIATION UPDATE...
OCTOBER 29, 2025: PROPERTY TAX UPDATE
Last week, the Legislature’s Comprehensive Property Tax Task Force held its fifth and final meeting. The Task Force discussed nearly 30 different proposals and ended the meeting with no definite plan to diminish or contain property taxes. Here are some highlights:
The Retailers will continue to work to ensure South Dakota maintains a responsible tax policy for businesses.
Last week, the Legislature’s Comprehensive Property Tax Task Force held its fifth and final meeting. The Task Force discussed nearly 30 different proposals and ended the meeting with no definite plan to diminish or contain property taxes. Here are some highlights:
- The Task Force recognizes that raising taxes on businesses is not a viable option; thanks to association engagement, proposals to dramatically raise taxes on businesses were tabled.
- The Task Force recommended increasing the state sales tax rate from 4.2% back to 4.5% to provide owner occupied property tax relief. The Retailers Association supports this approach.
- The Task Force recommended cutting 5% of the state general fund budget but offered no specific proposals for doing so. This does not seem likely in the 2026 legislative session.
The Retailers will continue to work to ensure South Dakota maintains a responsible tax policy for businesses.
Photo by Seth Tupper/South Dakota Searchlight
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Task force advances 19 proposals to reduce
South Dakota property taxes News From The States | Oct. 22, 2025 A legislative task force aiming to reduce property taxes for South Dakota homeowners advanced 19 proposals at its final meeting on Wednesday in Pierre, setting up a potentially long list of bills for legislators to consider this winter. Read More |
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Property tax task force concludes final meeting and makes its recommendations
Dakota News Now | Oct. 22, 2025 On Wednesday, state lawmakers concluded their final summer study meeting on the issue of property taxes. These meetings have produced a variety of ideas on how to reduce property taxes in the state. The question is, will lawmakers be able to filter through all of them and come up with effective solutions come the end of the legislative session? Read More/Watch the Video |
RETAILERS ASSOCIATION UPDATE...
OCTOBER 1, 2025: PROPERTY TAX TASK FORCE PROPOSES MANY NEW TAX INCREASES
The Comprehensive Property Tax Task Force, a group of legislators responsible for generating and vetting solutions to contain property taxes, met for the fourth time last week.
The Task Force has one more meeting scheduled before the 2026 legislative session and has yet to endorse a plan or identify one that appears viable. Their stated goal is to offset $400 million of Owner-Occupied property taxes when they gavel out Oct. 22.
However, finding $400 million in ongoing revenue is a steep challenge, and the initial proposals include MANY new tax increases on businesses. Just a few of the recommendations include:
The Retailers will continue to engage closely with this Task Force, attend the October meeting, and work to prevent bad policies that hurt businesses or damage South Dakota’s business-friendly environment.
The Comprehensive Property Tax Task Force, a group of legislators responsible for generating and vetting solutions to contain property taxes, met for the fourth time last week.
The Task Force has one more meeting scheduled before the 2026 legislative session and has yet to endorse a plan or identify one that appears viable. Their stated goal is to offset $400 million of Owner-Occupied property taxes when they gavel out Oct. 22.
However, finding $400 million in ongoing revenue is a steep challenge, and the initial proposals include MANY new tax increases on businesses. Just a few of the recommendations include:
- Increasing the state’s share of video lottery proceeds from 50% to 60%
(taking almost $34 million from small businesses each year) - Increasing taxes on alcohol, tobacco, and vaping products by 25% to 40%
(a hike of more than $30 million each year) - Increasing the Contractor’s Excise Tax from 2% to 2.5%
(another $55 million tax hike each year) - Creating a new penny per ounce tax on “sugary drinks”
(a burden of more than $60 million on grocers, convenience stores, and others each year) - Creating a new tax on advertising, radio, and TV broadcasting
(another $48 million in new taxes on businesses each year) - Creating a new tax on credit card processing services
(an additional $20 million burden on businesses each year)
The Retailers will continue to engage closely with this Task Force, attend the October meeting, and work to prevent bad policies that hurt businesses or damage South Dakota’s business-friendly environment.
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South Dakota Legislature has no clear direction on property tax changes, expert says
Mitchell Republic | Aug. 22, 2025 The South Dakota tax system isn’t broken, but it’s not perfect, either. At least, that’s the message that South Dakota tax experts wanted to convey at a panel dedicated to property taxes at Dakotafest on Aug. 19. Read More |
