SIOUX FALLS, S.D. (Dakota News Now) – State lawmakers are hoping to pass a bill this legislative session that could potentially make home ownership easier in South Dakota.
Representative Tony Venhuizen wants to cut down on property taxes by 35% if his bill passes.
He estimated this would save South Dakota homeowners roughly $280 million. However, with South Dakota already running on tight revenue margins and holding one of the lowest tax burdens of any state, Venhuizen recognized that the money needs to come elsewhere.
Therefore, he is looking to raise the state sales tax from 4.2 to 5%.
“Cutting property taxes will make housing cheaper and hopefully help lower-income people buy that first home, in exchange for a very small rate increase, .8 percent is 3 cents on a 4-dollar loaf of bread,” Venhuizen said.
At her budget address, Governor Kristi Noem advocated for a permanent sales tax cut.
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