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Bill Summary · HB 1308

Legislative bill overview

HB 1308 reduces property taxes on owner-occupied residential properties while offsetting the revenue loss by increasing gross receipts taxes and sales/use taxes in South Dakota. The bill has already passed the House Taxation Committee with strong support (10-2 vote) and is moving through the legislative process.

Why is this important

This represents a significant shift in South Dakota's tax structure, potentially lowering housing costs for homeowners while placing greater tax burden on businesses and consumers. The fiscal note will determine whether the tax increases fully offset property tax reductions and the overall impact on state revenue and different economic sectors.

Potential points of contention

  • Regressivity concerns: Increased sales and use taxes are regressive taxes that disproportionately burden lower-income households, potentially offsetting benefits to modest homeowners
  • Business impact: Higher gross receipts taxes could affect business competitiveness and economic growth, particularly for small businesses operating on thin margins
  • Revenue adequacy: Whether the tax increases truly offset property tax losses or create structural budget shortfalls in future fiscal years

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

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