WeVote
Log In

Bill

Bill

SB 99

create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.

2026 Regular Session Introduced by Randy Deibert and 3 co-sponsors

South Dakota bill creates fund reducing property taxes by raising state gross receipts and use taxes, shifting local service funding from property to consumption taxes.

First read in Senate and referred to Senate Taxation S.J. 67
#fund #propertytax #retailsalesandservicetax #stateaidtoeducation #taxexemptionsandrefunds #taxation
0
WeVote Research Nonpartisan
Bill Summary · SB 99

Legislative bill overview

SB 99 proposes creating a new "property tax local effort replacement fund" in South Dakota designed to reduce property tax burdens on residents and businesses. To fund this initiative, the bill would increase gross receipts taxes and use taxes at the state level, offsetting the local property tax reductions with higher state-level consumption taxes.

Why is this important

Property taxes are a major revenue source for local governments (schools, counties, municipalities), so redirecting this funding to the state level represents a significant structural shift in how South Dakota finances public services. This could affect both individual taxpayers and local government budgets depending on whether the gross receipts/use tax increases fully compensate for property tax losses, and it may alter the tax burden distribution between different income and spending groups.

Potential points of contention

  • Revenue neutrality questions: Whether the increased gross receipts and use taxes will generate sufficient revenue to fully replace property tax reductions without creating budgetary shortfalls for schools and local governments
  • Tax incidence shifts: Higher consumption taxes disproportionately affect lower-income households who spend larger portions of income on taxable goods and services, while property tax reductions may benefit property owners more broadly
  • Local government control: Centralizing education and local service funding at the state level reduces local control over tax rates and budget priorities, raising concerns about local autonomy and responsiveness to community needs

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.