Moody County homeowners benefiting from a reduced property tax rate due to their property’s agricultural status will soon lose that advantage on their homes.
County Commissioners voted last week to eliminate the 35% tax reduction on residences, citing a desire to be fair to other homeowners in the county and reported pressure from the South Dakota Department of Revenue.
“The lower tax rate on homes was never intended to be allowed,” said Director of Equalization DeAnna Berke during the Commission’s regular meeting.
“Moody County is currently the only county in the state offering this deduction.”
Berke explained that years ago, homes in Moody County situated on more than 30 acres and classified as agricultural received a 35% deduction on their homes. However, South Dakota law states that only the land and outbuildings, not the house, are eligible for the deduction.
To keep things equal and fair, Berke stated, it needs to be removed.
“We’ve been offering a break that we really shouldn’t be,” added Commission Assistant Marty Skroch.
Concerns have been raised about the impact of the tax break on local school budgets and state funding allocations, which could be affected if property valuations are inconsistent across counties. There is also worry that the reduced rate places a heavier burden on other homeowners in the district.
The reduced property tax rate will still apply to land classified as agricultural and to outbuildings. Homeowners will see the change reflected on their tax bills in 2026.
Other Commission Meeting Highlights:
● Road and Bridge Maintenance Plan: County Highway Supervisor Andy Mueller presented a new five-year plan for road maintenance and bridge replacements, highlighting which bridges are likely to need repairs first and outlining the funding sources for the improvements.
● Sheriff’s Department Uniforms: Sheriff Troy Wellman requested approval to purchase new uniforms for his staff, noting that the current uniforms are aging, show wear, and are made from heavy, non-breathable material under bullet-proof vests. The uniforms are also designed solely for men, and with the addition of at least one female deputy, Wellman emphasized the need for properly fitting uniforms. The request was approved, with no additional budget impact due to cost savings in other areas.
● Ambulance Service Funding: County Commissioners Jerry Doyle, Carla Bruning, Marty Skroch, and Auditor Tawny Heinemann plan to meet again with City of Flandreau officials about an annual stipend of $25,000 that will help offset costs for county ambulance services. Either that, or for the gifting of the former fire hall as a new home for the ambulance. What the direct request is, why the County Commission continues to make the request of the city, and why there is a new urgency around the conversation, on page 1.
