Property taxes focus at crackerbarrel

Nearly 60 people came to a District 30 legislative crackerbarrel hosted by the Hill City Prevailer and Custer County Chronicle Jan. 31 at the Super 8 in Hill City.

Similar to last year’s event, many in the room were there to discuss property taxes with the District 30 legislators, offering their take on what may play out in Pierre on taxes as well as other issues.

As a team the three District 30 legislators are clearly focused on property tax relief, and every hand in the audience went up when asked if they were concerned about skyrocketing property taxes in the area. 

Sen. Amber Hulse says her bill last year would have limited assessed values.

“It passed through the senate unanimously,” she said.

It also made its way through the house leadership committee by a “very small vote, even after 30 ag lobbyists got up and railed against it.”

The bill made it to the house floor. Hulse did not mince words explaining why her bill did not pass. 

“It was killed because of the political dynamics with the governor’s  bill because  the governor wanted to be able to say that he was the one that delivered  property tax relief,” she said. “That’s the truth.” 

 Hulse said she and the governor did not speak to each other for about six months because of that.

“I believe in separation of powers. I don’t think the governor should have to be standing on the floor of the legislative body. He’s the executive,” Hulse said.

Hulse says most legislators have begun to look at alternative revenue sources to lower property taxes. 

The governor’s proposal will be an optional half-cent sales tax for the county portion of a budget. In Custer County, Hulse estimates this will cover 60 percent of the portion of the county property tax bill. This would not reduce the school portion of a property tax bill.

Hulse says that  could be achieved by raising the sales tax from 4.5 percent to 5 percent. 

“It would make everybody’s school levies almost disappear,” Hulse said, saying it would be for homeowners only.

“For a half a penny more you would have no property taxes for schools,” said Hulse.

Hulse said that would put money into a fund specifically for this purpose. Hulse says the idea is to bring back the property tax relief fund to bring back  transparency and accountability to the process, so that funds collected go specifically to property tax relief. She admits that five years from now legislators could abolish that fund and not be accountable.

Rep. Tim Goodwin said if a bill isn’t specific money has to go into the general fund but that the bill being brought will be specific.

“It’ll be codified in the bill. That’s the only place it can go,” he said. 

Hulse said South Dakota has some of the lowest  sales tax in the nation and  that the burden then falls to the property tax and homeowners. She encouraged people to email Sen. Chris Carr,  who wants to keep the sales tax at 4.2 percent,  saying  that’s “his legacy.”

“The reason we have  no money, the reason we’re not giving increases to teacher pay, the reason we are struggling to  figure out how we’re gonna go with our Medicaid requirements as a state is because we don’t have enough sales tax money,” she said.

Hulse encouraged people in the room to email Carr and say, “don’t keep it at 4.2 percent. The half a penny is really going to help me stay in my home.”

All the legislators encouraged people to testify in Pierre about property taxes.

“I can’t tell you the power that has,” Hulse said, encouraging people to band together wearing the same color to share their property tax bills and struggles. “If you feel voiceless, you’re not voiceless, and having you come and testify and having your body in the room means something. And this year, if you really wanna see relief that’s what it’s gonna take.”

Hulse added that other legislators don’t know the struggles of this area.

“We need your help to share your voices,” she said.

Hulse said Sen. Taffy Howard is bringing a constitutional amendment to the people that is literally  word for word what Prop 13 is in California, which Hulse says is a very conservative idea. Hulse says her own bill was “Prop 13 light.”

Some in the audience wanted to know about bringing a different kind of alternative tax—an income tax. Goodwin says that idea is “dead in the water, it’s dead on arrival.”

Others in the room were concerned about ag land. 

Hulse said ag property taxes have actually gone down year over year for the last five years and that’s “one of the reasons why we’re in the situation we’re in right now.”

Hulse said her focus is to protect the rancher’s home and the small ma and pa producer.

“Anybody who’s a small operator that actually lives on  their farm and ranch will be benefiting from what we’re talking about,” Hulse said.

Rep. Trish Ladner, who has been a strong proponent for ag land said,  “ag is in its own separate category. They pay less of a mill levy than the homeowners do... we’re trying to take a tax issue that has been a  drought for the homeowner and help to insure that they remain in their homes.”

The audience asked very few additional questions but one person asked about industrial dairies and data centers that use a lot of water and electricity. 

Goodwin said the state recruits huge dairies from overseas or other states. He wanted a moratorium on  the number of cows.

“I was trying to take care of the family farmer because he’s gonna be an extinct species,” he said.

He got no support for his bill.

 Ladner spoke about data centers and said she could not support one unless it had its own source water, produced its own electricity and would  not request a tax exemption. Ladner  said  data centers don’t create many  jobs other than construction. 

Another in the audience had a question on raising state park fees to help Custer County residents who have a heavy tax burden for  services as a result of tourists visiting Custer State Park. Ladner said South Dakota Game Fish and Parks has been working with County commissioners to raise reimbursements.

“They’re willing to talk,” Ladner says. 

Individually, Hulse, a Hot Springs native, is serving on the taxation committee and is the vice chair of the Senate Judiciary Committee. Hulse has a law degree and is bringing a bill on driver’s licenses that will put some of the “Trump executive order requirements into statute.”

Hulse explained the importance of this bill.

“If you’re not a citizen and your work visa is expired you shouldn’t have a license to be driving a vehicle here anymore,” she said.

Hulse is also bringing some election integrity bills as well as bills about lawsuits, including a disclosure bill that would indicate transparency in who is financially representing a party in a lawsuit. Hulse also has a bill on anti -Strategic Lawsuits Against Public Participation laws  that could bankrupt an entity that might have to defend a free speech lawsuit.

“I believe every South Dakotan should be able to speak freely and exercise their First Amendment regardless of whether or not you can afford a lawyer,” she said.

Ladner  is serving on the Ag and Natural Resources Committee.

“For the last five years I’ve championed property tax reform,” Ladner said. “Our voice is getting very loud.”  

Ladner said it’s hard to pass anything with many tax bills and hopes legislators will focus on one or two great tax bills. Ladner is also working to increase income levels for the elderly and disabled property tax freeze.

“I don’t know about you but I don’t want to see anyone taxed out of their homes,” she said. 

Rep. Tim Goodwin  says things in Pierre are encouraging in relation to property tax relief.

“This is about the people, that’s what we’re here for,” he said.

He serves as chair of military and veterans affairs. Goodwin also voiced his concern about water in the Black Hills. 

“We gotta work on getting water out here long term,” Goodwin said, explaining challenges due to the Black Hills elevation. 

Legislators say that voters can expect to see a lot of ballot measures when they go to the polls to vote.