STURGIS, S.D. – The Meade County Commission on Tuesday approved first reading of an ordinance that will introduce a local sales tax to help lower property taxes for residents.

Ordinance 60 would establish a gross receipts tax on goods, services, and electronically transferred products sold within the county.

The move follows the recent passage of Senate Bill 96 during the 2026 South Dakota legislative session. Effective July 1, the new state law grants counties the authority to levy a local sales tax of up to 0.5%. Meade County is considering taking the full 0.5% in their ordinance.

All monies in the fund must be used to provide owner-occupied properties with a tax credit against the county portion of the property tax bill. However, counties can retain two percent in the initial year after imposition of the tax and up to $20,000 in subsequent years for administrative costs. Any remaining funds after 100 percent of the county owner-occupied taxes are replaced must be used to offset agricultural and non-agricultural property taxes proportionally.