Sioux Falls, South Dakota — The Minnehaha County Board of Commissioners has approved a motion to opt out of South Dakota’s property tax limits.
With the approved motion, the county hopes to collect an additional $1.5 million in property taxes.
According to Finance and Budget Officer Susan Beaman, the need for an opt-out stems primarily from costs associated with public safety and justice. She claims they account for 71% of the general fund budget for next year, and that costs related to public safety and justice have increased by nearly $23 million between 2021 and 2026.
“As long as those things remain in the forecast, the opt outs will most likely need to continue to increase,” according to Beaman.
But Beaman’s goal is for those opt-outs to gradually increase.
“What we don’t want to do is delay the opt-out so long that you end up with a $6-7 million opt-out that you have to levy all at once when property taxes are high. “We hope for fewer opt-outs each year,” Beaman said.
“Incremental opt-out requests provide taxpayers with predictability, as previously mentioned. “I agree with that,” commissioner Cole Heisey said. “Further, an incremental approach places accountability on the county to annually monitor whether there’s a need for an additional opt out.”
The commissioners view the opt-out as a necessary step.
“I think the legislature likes framing an opt out as optional, but I don’t see our public safety and justice as optional,” the commissioner, Joe Kippley, said.
The opt-out is not expected to be imposed on taxpayers until 2028.
If at least 5% of registered voters in Minnehaha County sign and submit a petition within twenty days, the decision can be put to a public vote.
