House Tax Committee Sends Online-application Bill for Property-tax Relief to Appropriations After Security, County-workload Concerns

The House Tax Committee on a majority vote sent House Bill 12-59 to the House Appropriations Committee with a due-pass recommendation after extensive testimony about the feasibility of providing an online application for state property-tax relief programs.

Rep. Greg Jamieson (District 12, Sioux Falls), the bill—s prime sponsor, said the proposal aims to "require the Department of Revenue to provide a system for applicants ... to apply online for their property tax relief program" and urged the panel to forward the bill to appropriations so funding can be considered.

Department of Revenue property-tax director Wendy Semler testified in opposition, citing data-security and workflow concerns. "These applications require highly sensitive personal information such as social security numbers, medical documentation, age verification, income," Semler said, and added that the current DOR platform "wasn't designed to securely route that sensitive information to 66 different counties." She noted preliminary programming estimates in the fiscal note in the roughly $82,000 to $145,000 range and said DOR expects the need for at least one additional FTE and ongoing county costs such as ServiceNow licenses.

County treasurers and county officials gave uniform testimony that many applicants prefer in-person assistance and that counties regularly help fill and process forms. Sully County Treasurer Helen Jane Paxton said, "The majority of our applicants in large and small counties prefer to bring their paperwork directly to our office," and warned an online mandate could confuse applicants, risk privacy, and add costs to county budgets.

Myron Hertel, Union County treasurer, told the committee Union County receives about 150 elderly-freeze applications a year and questioned whether licensing and encryption costs would be justifiable for most counties.

Jamieson acknowledged the concerns in rebuttal and said he supported sending the bill to appropriations so funding and security solutions can be explored. "That's the intent and heart behind it," he said of simplifying access.

Committee members split over timing and cost. Some members argued the idea is a worthy modernization that should be funded centrally; others said the counties' testimony showed the bill was premature without a clear, secure routing solution and identified ongoing costs. Representative Mortensen moved to refer the bill to House Appropriations with a due-pass recommendation; following debate and a failed substitute motion to send the bill to the "40 first day," the committee approved the motion and the bill will go to appropriations.

The committee recorded the action in roll call and the chair announced the bill will proceed to the House Appropriations Committee for further work and potential appropriation of funds.