RAPID CITY, S.D. – A forum featuring a panel of experts, including state legislators, county officials and property experts, gathered at the South Dakota School of Mines in Rapid City on Saturday to discuss the escalating cost of property taxes.
Open to the public, attendees were encouraged to voice their opinions, ask questions and express concerns.
Various topics were explored during the forum, including:
- Understanding the factors contributing to the increases in property taxes
- Assessing the impacts of rising property taxes on the public
- And exploring policy options to mitigate the negative effects
State Representative Trish Ladner of District 30 says, “We’re all here to look at the situation, look at different models that states are maybe proposing, different models our legislature has proposed, and then talk about solutions,” she stated. Ladner also highlighted her request for a property tax study to be conducted this summer, with the aim of informing legislative action based on the findings of the study.
Throughout the forum, attendees raised multiple questions concerning potential bills to lower property taxes, current initiatives addressing the issue and actionable steps that the public can take. Ladner attributes the rise in property taxes to what she describes as a “perfect storm.”
Since the onset of the COVID-19 pandemic, she notes a surge in people relocating to South Dakota, leading to heightened competition for available housing and resulting in bidding wars. This influx of newcomers purchasing homes at elevated prices has caused neighborhoods to increase in value, consequently driving up property taxes says Ladner.
According to the Department of Revenue, property taxes are determined by the assessed value of a home. For instance, a $5 million home will have higher taxes compared to a $200,000 home. Lander explains that when homes are sold at higher value, it contributes to an overall increase in property prices throughout the area.
In addition to the panel, members of the public brought up potential solutions, such as increasing sales taxes, tourism taxes or granting counties the ability to determine tax policies for their residents.
