SEAL SD Plan: Safeguards to Protect Homes and Liberty in South Dakota
As property taxes in South Dakota have surged—up nearly 60% for residential homes and 50% for commercial properties over the past decade—homeowners statewide face growing financial strain. The SEAL South Dakota (SEAL SD) plan, proposed by a taxpayer advocacy group in April 2025, offers a bold alternative to the state’s current Senate Bill 216 (SB 216). Beyond promising deeper tax relief, SEAL SD incorporates specific safeguards designed to prevent South Dakotans from losing their homes and to preserve their liberty. Here’s how it aims to achieve that across the state’s diverse urban, rural, and agricultural landscape.
Rolling Back the Clock: A Reset to 2020 Values
The cornerstone of the SEAL SD plan is its rollback of all property assessments—residential, commercial, and agricultural—to 2020 levels, before the COVID-era valuation boom that saw home values climb 42% statewide from 2019 to 2023. For a typical $200,000 home in 2024, this could mean a taxable value drop to around $142,000 (assuming a 40% increase since 2020). At South Dakota’s median effective tax rate of 1.26%, this slashes annual taxes from $2,520 to $1,789—a $731 reduction in year one.
This rollback acts as a direct safeguard against home loss by slashing tax bills immediately, easing the burden on fixed-income households, young families, and rural landowners who’ve seen taxes outpace wages or farm profits. Unlike SB 216’s 3% cap, which only slows future increases from an already high 2024 baseline, SEAL SD resets the clock, giving homeowners breathing room to avoid delinquency. In 2024, South Dakota foreclosures ticked up slightly (e.g., one per 3,704 housing units, per ATTOM Data), often tied to tax burdens in high-growth areas like Sioux Falls or Pennington County. By cutting taxes upfront, SEAL SD reduces this risk statewide.
A Tighter 2% Cap: Locking in Long-Term Affordability
Post-rollback, SEAL SD caps annual assessment increases at 2%—a full percentage point below SB 216’s 3%—with no expiration date. For that $142,000 home, taxes grow to just $2,176 by 2034 (at 1.26%), compared to $3,386 under SB 216. This slower growth ensures taxes don’t creep back to unaffordable levels, a critical safeguard for maintaining homeownership over decades.
Liberty-wise, this permanence protects South Dakotans’ autonomy over their property. SB 216’s five-year cap (expiring 2029) leaves homeowners vulnerable to a post-2030 spike—potentially $5,355 by 2034 if 9% growth resumes—threatening financial independence. SEAL SD’s forever-cap avoids this cliff, letting families in Minnehaha, Lincoln, or rural Ziebach County plan their futures without fear of losing their homes to unpredictable tax hikes. It’s a shield against the state reclaiming property through tax liens, a process that erodes personal freedom when budgets can’t keep up.
Universal Scope: No One Left Behind
Unlike SB 216, which limits its 3% cap to owner-occupied homes (44% of the tax burden), SEAL SD applies its rollback and 2% cap to all properties—roughly $250 billion in taxable value, including 400,000 homes, 30,000 farms, and commercial sites. This universality is a safeguard against inequity that could destabilize homeownership.
In SB 216, uncapped commercial and agricultural properties (51% of the tax base) might face higher levies as local governments offset homeowner relief, indirectly pressuring rural landowners or renters (via passed-on costs). SEAL SD prevents this shift. A farmer in Brookings County, paying $1,500–$2,000 annually on ag land, gets the same rollback and cap as a Sioux Falls homeowner, preserving their stake in the land. For liberty, this broad protection upholds the right to own and use property without punitive taxation favoring one group, ensuring no South Dakotan is priced out of their home or livelihood.
Revenue Backstop: Spreading the Load
The SEAL SD plan’s most innovative safeguard is its revenue replacement strategy, using a $300 million state surplus (as of 2025) and potential sales tax adjustments to offset the ~$500–600 million annual revenue loss from lower assessments. This cushions local governments—schools (56% of taxes), counties, and cities—reducing their need to jack up levies, which could otherwise negate tax relief and push homeowners toward default.
For example, a 0.3% sales tax hike (from 4.2% to 4.5%) could raise ~$104 million yearly, per legislative estimates, with tourists and out-of-state visitors (e.g., in the Black Hills or Sioux Falls) footing much of the bill. This shifts some burden off property owners, enhancing liberty by tying taxes to voluntary consumption rather than immovable assets. A retiree in Rapid City or a farmer in Faulk County pays less to keep their home, not more to fund schools via levies that SB 216 allows to rise (e.g., 0.05–0.10 points historically).
Liberty Through Local Control
SEAL SD implicitly supports local decision-making, a nod to South Dakota’s ethos of self-governance. While not detailed in the plan, its revenue flexibility—counties could opt into sales tax tweaks—echoes Governor Rhoden’s April 2025 proposal for a 0.5% local sales tax option ( Dakota War College). This empowers communities to tailor relief, preventing a one-size-fits-all state mandate that could force home losses in cash-strapped areas. Liberty here is the freedom to stay rooted without Pierre dictating terms that lead to tax sales.
The Bigger Picture: Homes and Freedom Intact
Statewide, SEAL SD’s safeguards outstrip SB 216’s. The rollback and 2% cap could save households ~$1,200 more by 2034 (e.g., $2,176 vs. $3,386), keeping taxes below 2024 levels for years. Covering all properties prevents tax shifts that threaten farms or rentals, while revenue replacement curbs levy spikes that hit SB 216 homeowners (e.g., 5–7% annual increases). In 2024, South Dakota’s median tax of $2,258 ranked mid-tier nationally, but rapid growth in places like Lincoln County ($3,102 median) shows the stakes. SEAL SD halts this trajectory.
For liberty, owning a home is a bedrock of independence—freedom from rent, roots for families, and security against state overreach. SB 216’s temporary fix risks post-2029 shocks; SEAL SD’s permanent, universal approach ensures South Dakotans keep their homes and their agency. The catch? Funding must hold. If surpluses dry up or sales tax hikes falter, relief could shrink—yet even then, the plan’s structure offers more protection than SB 216’s limited scope. For a state valuing property rights, SEAL SD is a stronger shield.
This article highlights how SEAL SD’s design—rollback, tight cap, broad scope, and revenue strategy—safeguards homeownership and liberty more robustly than SB 216, tailored to South Dakota’s statewide needs. Thoughts on how the funding risk might play out? That’s the wild card.