PIERRE, S.D.\u2014Voters in four South Dakota counties will decide in November whether to impose new local sales taxes intended to reduce property taxes on owner-occupied homes.<\/p>\n
Brown and Codington counties will vote on half-percent county sales taxes during the Nov. 3 general election, while Clay and Charles Mix counties are scheduled to hold special elections Nov. 17 after residents successfully referred their county ordinances to voters.<\/p>\n
The measures follow legislation approved earlier this year giving South Dakota counties authority to impose a sales tax of up to one-half percent for the first time. Revenue from the tax must be used to reduce the county portion of property taxes for qualifying homeowners.<\/p>\n
Several counties have already adopted the new tax without a referendum. Custer, Fall River, Lawrence, Lincoln, Meade and Pennington counties are scheduled to begin collecting the additional half-percent sales tax in January.<\/p>\n
The local measures are part of a broader shift in South Dakota\u2019s approach to property-tax relief.<\/p>\n
State lawmakers also approved a plan tied to the statewide sales tax rate, which is scheduled to increase from 4.2% to 4.5%. Revenue generated by that increase will be directed toward reducing homeowner property taxes statewide.<\/p>\n
Supporters of the changes argue that the approach provides meaningful relief to homeowners facing rising property-tax bills by shifting some of the tax burden toward sales.<\/p>\n
Critics have raised concerns that sales taxes are paid by a broader group of consumers, including renters and lower-income residents who may not directly benefit from homeowner property-tax reductions.<\/p>\n
The November votes will provide an early test of how South Dakota residents view that tradeoff as counties decide whether to use their newly granted taxing authority.<\/p>\n