STURGIS, S.D. – The Meade County Commission today unanimously passed second reading of Ordinance 60, which 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 as of July 1, the new state law grants counties the authority to levy a local sales tax of up to 0.5%. Meade County will impose the full 0.5% according to 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.

Chief Deputy State’s Attorney Ken Chleborad spoke to commissioners about when property tax relief could be seen and also provided commissioners some projections.

Chleborad says it will be up to the board to determine whether or not to do a full 50-percent reduction or something less for the county’s portion.

Pennington County is also currently working on a similar sales tax ordinance.