ABERDEEN, S.D. — South Dakota lawmakers spent a second day in Aberdeen hearing testimony on the state’s property tax system, with residents, local officials, and legislators debating how taxes are assessed, collected, and spent.
Property taxes fund schools, local government, and infrastructure, but rising bills and uneven assessments have stirred frustration across the state. The Comprehensive Property Tax Task Force is studying whether the system can be made fairer or replaced without draining local budgets.
An Aberdeen resident questioned whether a home’s appearance should influence its tax rate.
“My tax bill went up 50 percent in five years,” he said. “If you own a nice home, you shouldn’t have to pay more just because it looks nice — we all use the same roads, schools, and health department.”
Former legislator Paul Dennert from Columbia said lawmakers should focus on helping those who need relief most.
“I have no sympathy for people building million-dollar homes and then complaining about their property taxes,” Dennert said. “We should give retirees and poor people a break, not pass laws to help the wealthy.”
Brown County Commissioner Mike Wiese said Senate Bill 216, passed earlier this year, is already creating challenges for counties.
“SB 216 adds a 3 percent cap but still forces counties to meet the 85 percent rule, which means two sets of books and more burden on county officials,” Wiese said.
Other testimony addressed tax increment financing districts, or TIFs. Rep. Glen Vilhauer, R-Watertown, defended their use for development, while Rep. Julie Auch, R-Yankton, questioned whether they deliver benefits evenly across communities.
Sen. Randy Deibert, R-Spearfish, urged the task force to begin drafting specific proposals for next year’s legislative session.
No date has been set for the next meeting.