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House panel advances cap reduction on taxing districts

SDPB

The South Dakota House State Affairs committee is passing a bill that reduces the amount taxing districts can raise property taxes.

The bill limits schools, counties and municipalities from raising taxes by 2.5 percent or inflation — whichever is less. Current law is three percent.

Rep. Greg Jamison, R-Sioux Falls, is the prime sponsor of the bill. He said the bill puts taxing districts on notice.

“Every one of these taxing districts can raise all the money they need by opting out. The intent of this bill is to send a message to those taxing districts that we’ve had enough," Jamison said. "We need to change. We need something to be different.”

Critics say it would affect a county’s ability to fund road and bridge improvements.

Officials in the Department of Revenue say the proposal could mess with the education funding formula.

The bill passed nine to three. It now heads to the full House.

There are multiple bills looking to change or limit property taxes this year. The Senate is set to vote on Gov. Larry Rhoden’s working group property tax relief idea soon.

Lee Strubinger is SDPB’s Rapid City-based politics and public policy reporter. Lee is a two-time national Edward R. Murrow Award winning reporter. He holds a master’s in public affairs reporting from the University of Illinois-Springfield.