Governor candidates talk Dusty Johnson’s property tax proposal

SIOUX FALLS, S.D. (Dakota News Now) - Property taxes continue to dominate the political discourse in the state, and this week, Congressman Dusty Johnson weighed in.

While some gubernatorial candidates have advocated for the complete elimination of property taxes, Dusty Johnson plans for a different approach.

“Unlike the other property tax proposals that people running for governor have proposed, mine is workable, it’s doable, it’s paid for, and it’s the kind of thing that is going to deliver real value for every South Dakota homeowner,” Johnson said.

After a temporary cut to 4.2%, the state sales tax is set to increase in 2027 back to 4.5%. Johnson wants to use that money to provide a $400 property tax credit for every homeowner.

“Property taxes are a much bigger complaint than sales taxes, and so under existing state law, we’re going to have the sales tax return to 4.5%. And rather than have state government just spend that money, I want to make sure we’re giving those funds back to taxpayers,” Johnson said.

His plan would also zero out property taxes for 2 years for first-time home buyers.

“We know that home ownership is, for many, a huge part of the American dream. We have made it harder and harder for young people to get into homes. That’s why my plan is such a powerful statement about the values of our state. We want the young people who have moved away to come back to South Dakota,” Johnson said.

Twenty-year old Democratic candidate Robert Arnold says there is room for discussion regarding helping those on fixed incomes, but property taxes are not the reason home ownership rates are low amongst younger generations.

“It’s more so interest rates and lending power that I have. So, for first-time homebuyers, it’s not really about the property tax, so I think that’s just a virtue signal,” Arnold said.

Arnold says the state needs to push towards streamlining permitting to build affordable housing.

“Right now, affordable housing is not profitable for the builders. It’s much more profitable to build a large single-family house that can sell for a very high price,” Arnold said.

Aberdeen businessman Toby Doeden had this to say on Facebook:

Doeden is aiming for a complete elimination of property taxes.

South Dakota Speaker of the House Jon Hansen shared his thoughts with Dakota News Now:

Hansen vice-chaired the Comprehensive Property Tax Task Force and received recommendations for proposals to cut the general fund by 5 percent and also used money from the housing and infrastructure fund, as well as from current reserves, to provide property tax credits of 500 dollars, a similar move to Johnson’s proposal of a 400-dollar credit.