This story will be updated with additional information later today.
PIERRE, S.D. (KELO) — Gov. Larry Rhoden says giving county governments the local option to add a half-percent of sales tax would reduce property taxes in those counties that choose that path.
The Republican governor outlined his proposal on Monday to Capitol reporters.
He wants state lawmakers to allow counties to levy a sales tax for the first time and have that revenue dedicated to reduce the county’s tax levy on owner-occupied property.
He said it would mean a 21% reduction in current property taxes on a $325,000 owner-occupied home if adopted in Minnehaha County and a 22% reduction in Pennington County.
Rhoden’s plan will be presented to the Legislature’s new task force that will study property taxes later this year. He discussed it with the Legislature’s leadership on Sunday night.
Two of the governor’s Cabinet members, Finance Commissioner Jim Terwilliger and Revenue Secretary, accompanied him to the news conference on Monday.
Terwilliger will have a seat on the Legislature’s property-tax group. Former Rep. Kirk Chaffee, a retired Meade County director of equalization, will represent the governor. Directors of equalization assess property values in each county.
The 16 legislators on the task force haven’t been publicly announced.
