County debates Senate Bill 96 sales‑tax option to fund homeowner property tax credits; residents urge caution

County staff presented an overview of Senate Bill 96, which permits counties to adopt a county sales tax up to 0.5 percentage points to fund credits for owner‑occupied property tax bills. Staff emphasized that the law took effect July 1, requires an ordinance adopted by the county to opt in, and that the Department of Revenue will only begin collections on Jan. 1 or July 1 with 90 days’ notice.

Staff told commissioners they could (a) collect a year of sales tax and then apply a known credit in the following year, or (b) estimate collections and apply a projected credit more quickly, noting the second approach carries fiscal risk. They also warned of software and implementation work needed in the auditor’s office and said SB 96 allows counties to use up to 2% of collected receipts for administration and software upgrades.

Public commenters urged caution. Senator Randy Diver urged the commission to verify collection estimates and consider broader funding priorities such as bridge grants. Becky Nelson, a Spearfish resident, told the board she was concerned SB 96 would shift tax burdens to lower‑income residents and renters and asked for transparent local modeling and a public vote: “I have concerns about S B 96,” she said, recommending a referendum to give the public a direct decision. Commissioners debated timing and whether to put the ordinance on the Aug. 11 agenda for first reading; staff said an ordinance could be adopted in time for the Department of Revenue to begin collection Jan. 1, 2027 if the county completes required steps by late September.