South Dakota Senate Passes County Sales Tax Option Legislation

The bill would allow counties to adopt a local gross receipts tax to reduce property taxes on owner-occupied homes.

Published on Mar. 6, 2026

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The South Dakota House has approved a plan that would let counties adopt a local gross receipts tax of up to half a percent. The money would be used to reduce property taxes on owner-occupied homes. Supporters say the plan gives counties local control and could shift part of the tax burden to visitors, while critics argue it amounts to a new sales tax that affects everyone.

Why it matters

This legislation aims to provide counties with more control over their tax policies and potentially reduce the property tax burden on homeowners, especially in tourism-heavy areas. However, there are concerns that it could disproportionately benefit wealthier counties and not provide enough relief for renters.

The details

Senate Bill 96 was passed by the South Dakota House on a 48 to 19 vote. The measure would allow counties to adopt a local gross receipts tax of up to half a percent, with the revenue used to reduce property taxes on owner-occupied homes. Supporters argue this could shift some of the tax burden to out-of-state visitors, while critics say it amounts to a new sales tax that affects all residents.

  • The South Dakota House approved Senate Bill 96 on Thursday, March 6, 2026.
  • The bill now heads to Governor Larry Rhoden, who has praised the proposal.

The players

South Dakota House

The lower chamber of the South Dakota state legislature that passed Senate Bill 96.

Governor Larry Rhoden

The governor of South Dakota who has praised the county sales tax option legislation and says it could deliver the largest property tax cut in state history.

Representative Mike Derby

A Republican lawmaker from Rapid City who supports the plan, saying it could help tourism areas like Pennington County by shifting some of the tax burden to visitors.

Representative Will Mortenson

A Republican lawmaker from Fort Pierre who criticized the plan, calling it a 'reverse Robin Hood' that could shift money toward wealthier counties.

Representative Erik Muckey

A Democratic lawmaker from Sioux Falls who said renters may see little benefit from the property tax reductions.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.