Six South Dakota Counties to Cut Property Taxes
Custer, Fall River, Lawrence, Lincoln, Meade and Pennington counties will offer a local option property tax credit under Senate Bill 96 starting in 2027.
Updated on Nov. 9, 2026 in Taxes
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Six South Dakota counties have adopted a local option property tax credit authorized by Senate Bill 96. The property tax cut is set to begin on January 1, 2027.
Why it matters
The credit reduces owner-occupied property tax bills in the adopting counties, funded by a county gross receipts tax. Residents of South Dakota counties that have not adopted the option will not receive the credit.
Six counties adopted the option, each directing revenue from a 0.5% county gross receipts tax into its property tax reduction fund. The extraction does not report the expected dollar amount of the credit for individual homeowners.
The players
South Dakota Department of Revenue
The state agency that maintains an updated list of municipal, county, tribal and special jurisdiction tax rates statewide.
The details
Under Senate Bill 96, each adopting county directs revenue from a 0.5% county gross receipts tax into a property tax reduction fund. The fund provides a credit against owner-occupied property tax bills as required by state law.
Timeline
January 1, 2027: Six counties begin carrying out the property tax cut.
Counties may set or adjust these tax rates on January 1 or July 1 each year under SDCL 10-52B-10.
Roadmap
The adoptions put into practice the local option authority created by Senate Bill 96 and codified in SDCL 10-52B-10, which lets counties adjust rates on January 1 or July 1. Counties that have not adopted the option remain outside the credit's coverage.
Owner-occupied homeowners in the six adopting counties will see a credit against their property tax bills beginning in 2027. Residents should check the South Dakota Department of Revenue's list of jurisdiction tax rates to confirm their county's status.
The takeaway
Homeowners in the six adopting counties should expect a property tax credit starting in 2027, and anyone with questions can call the South Dakota Department of Revenue at 1-800-829-9188 to confirm local rates.
What happens next
Updated tax guides will be available after January 1, 2027, when the property tax cut takes effect.
Further reading
For broader background, explore Taxes coverage on how local property tax rules differ across states.
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