Six South Dakota Counties to Implement Property Tax Cuts via SB 96

Six South Dakota counties are set to launch a property tax cut on Jan. 1, 2027, following the passage of Senate Bill 96, Dakota News Now reported.

The relief targets owner-occupied properties through a dedicated reduction fund. This mechanism relies on a 0.5% county gross receipts tax, which each participating county will direct into its specific property tax reduction fund to offset resident bills.

The counties participating in this local option are Custer, Fall River, Lawrence, Lincoln, Meade, and Pennington. Using this specific tax structure, these jurisdictions aim to provide direct financial relief to homeowners within their borders.

The implementation process relies on state-mandated revenue redirection. Under the provisions of Senate Bill 96, the revenue generated from the 0.5% gross receipts tax is specifically earmarked for the property tax reduction fund.

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This fund functions as a credit against the property tax bills of residents who occupy the homes they own. Governor Larry Rhoden noted the significance of the legislative move during the rollout of the policy.

“We delivered the largest property tax cut in the history of South Dakota, and it is so rewarding to see it become reality,” said Governor Larry Rhoden.

The Governor added that the Department of Revenue is currently assisting counties with the implementation phase to ensure residents receive the intended benefits. This administrative support is intended to smooth the transition as the 2027 tax year approaches.

The timing of these tax adjustments is governed by South Dakota codified law. According to SDCL 10-52B-10, counties maintain the authority to set or adjust these specific tax rates on either Jan. 1 or July 1 of each year.

Because these changes are tied to specific calendar dates, the South Dakota Department of Revenue maintains a continuous, updated list of tax rates. This list covers municipal, county, tribal, and special jurisdictions across the state. Residents and business owners can monitor these changes through the Department of Revenue website.

For those seeking granular details on how these changes affect their specific filings, the state plans to release updated tax guides following the Jan. 1, 2027, start date. Businesses and individuals can also access the Sales Tax Bulletin for Cities and Counties via the official state portal or by contacting the department directly at 1-800-829-9188.

The use of a “local option” means that the tax relief is not a uniform statewide mandate applied identically to every resident. Instead, it allows specific counties to adopt the measure based on their own legislative and fiscal decisions.

While the tax cut provides direct relief to homeowners, the reliance on a gross receipts tax means the funding is tied to local economic activity. The success of the reduction fund in Custer, Fall River, Lawrence, Lincoln, Meade, and Pennington counties will ultimately depend on the revenue generated from these local receipts.

This structure creates a direct link between local commerce and residential tax relief. As the January 1 deadline nears, the focus for these six counties will shift from legislative planning to the practicalities of revenue collection and credit application.

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