SIOUX FALLS, S.D. (KELO) — The Minnehaha County Board of Commissioners has approved a motion to opt out of the state of South Dakota’s limitations on property taxes.
With the approved motion, the county is looking to receive an additional $1.5 million in property taxes.
Finance and Budget Officer Susan Beaman says the need for an opt out is mainly to cover public safety and justice related costs. She says they make up 71% of the general fund budget for next year and that from the 2021 to the 2026 budget, public safety and justice related costs have gone up by almost $23 million.
“As long as those things remain in the forecast, the opt outs will most likely need to continue to increase,” Beaman said.
But Beaman’s goal is for those opt outs to only steadily increase.
“What we don’t want to do is to delay opt out so long that you have a $6-7 million opt out that you have to levy at one time where you have spikes in property taxes. Our hope is smaller opt outs every year,” Beaman said.
“Incremental opt out requests creates predictability for taxpayers, and that that’s been mentioned. I would 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 see 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,” commissioner Joe Kippley said.
This opt out is not expected to be levied on taxpayers until 2028.
The decision can be referred to a public vote if at least 5% of registered voters in Minnehaha County sign a petition and file it within twenty days.
