If you own a home in South Dakota, property tax relief is already signed, funded, and on its way to you. Most homeowners don't know this yet. The commission meetings where Custer County's fire opt-out is being discussed are happening right now — before July 1, when the state relief appears on your bill.
Let me give you the plain-English version of what just happened at the state level, what it means specifically for Custer County, and why the timing of the fire opt-out proposal is something you should understand before it gets a vote.
What the Governor Signed — The Short Version
On March 12, 2026, Governor Larry Rhoden signed two bills into law. Together, state officials described them as the largest property tax cut in South Dakota history.
SB 245 works by taking the revenue generated when the state sales tax rate returns to 4.5% from its temporary 4.2% rate — and instead of putting that money in the general fund, directing it to property tax relief. The state is literally choosing to give that money back to homeowners instead of keeping it.
What This Means for Your Bill — In Plain English
Most people see a single number on their property tax bill. That number is actually built by stacking several separate taxing authorities: the county, the school district, the city if you live in one, and various special districts. Each adds its own mill levy. One mill equals $1 of tax for every $1,000 of your home's assessed value.
What SB 245 does is place a credit on that total bill — a reduction funded by the state, not by any cut in services. You pay less. The state picks up the difference from sales tax revenue.
What SB 96 does is give Custer County the ability to say: "Instead of charging property owners more, we're going to charge a small sales tax — and all of that goes to reducing what property owners pay." Wind Cave National Park, Custer State Park, Mount Rushmore traffic, Black Hills tourism — all of that visitor economy would contribute to the costs those visitors impose on county infrastructure, including fire departments and law enforcement.
The Problem: The Fire Opt-Out Works Against This
Here is where it gets specific to Custer County. While the state is delivering its largest-ever property tax cut, the Custer County Commission is actively pursuing a Fire Protection Opt-Out — a new annual property tax levy on every property in the county.
"This is merely a band aid."
— Commissioner Hartman, on the county's approach to fire department funding, June 18, 2025
The opt-out, if passed, goes onto your property tax bill — the same bill that is about to receive a state-funded credit. The net effect: some or all of your SB 245 relief gets offset by the new county levy. You gain relief from one pocket and lose it out of the other.
State relief coming July 1, 2026: approximately $547 per year on a $325,000 home. New Fire Opt-Out proposed: an additional property tax levy added annually. The commission has not published any analysis comparing what SB 96's local sales tax option would generate versus what the property tax opt-out would collect. Those are the numbers Custer County residents need before any vote.
SB 96 Is the Right Tool — And the Commission Isn't Using It
SB 96 was specifically written as a mechanism for counties to fund services without burdening property owners. The state legislature passed it. The governor signed it. It is now law. Custer County has the legal authority to implement it today.
A half-cent sales tax on the tourism economy flowing through Custer County — Wind Cave, Custer State Park, the Needles, the millions of Black Hills visitors — would generate substantial annual revenue. Every dollar would legally be required to go toward reducing property tax levies. Fire departments could be funded. Property owners would pay less, not more.
The commission has not announced any evaluation of this option. They have not published a comparison. They have proceeded directly to a property tax opt-out without publicly discussing the alternative that the state legislature handed them.
What to Ask Before the Vote
- Has the commission calculated what SB 96 would generate annually in Custer County? What is that number?
- What will homeowners' net property tax bills look like after SB 245 credits and the fire opt-out are both applied — combined?
- Why is the property tax opt-out being pursued instead of the sales tax mechanism the state legislature specifically designed for this purpose?
- Has the county auditor prepared a formal comparison of the two funding options?
SB 245 and SB 96 signed March 12, 2026 by Governor Larry Rhoden. Full text at sdlegislature.gov. Savings estimates from Governor's office and SD Searchlight reporting. Custer County fire opt-out discussion from official commission minutes 2024–2026, searchable free at sealsd.com/app. Commissioner Hartman "band aid" quote from official minutes, June 18, 2025.
Jerry Odom is the founder of SEAL SD. Download the full print-ready property tax relief explainer at sealsd.com/documents.
Search all Custer County Commission meeting minutes yourself —
it's free. No account required.
Search the Minutes at SEAL SD →