Codington County Considers New 0.5% Gross Receipts and Use Tax to Reduce Property Taxes

Northeast Radio SD News – Watertown, SD - Codington County took its first formal step toward the consideration of adopting a new county gross receipts and use tax Tuesday morning, holding the required first reading of Ordinance 83 during the Board of Commissioners’ regular meeting at the Codington County Courthouse.

Chairman Troy VanDusen introduced the item and turned the floor over to Commissioner Lee Gabel, who read the proposed ordinance in full. The measure would establish a 0.5% county gross receipts tax and a 0.5% use tax, with an effective date of January 1, 2027.

According to the ordinance text, the purpose is “to provide needed revenue while reducing the county property tax for Codington County, South Dakota, by imposing a county gross receipts tax…”

Gabel continued through each section, outlining how the tax would be collected, how the ordinance should be interpreted, applicable penalties, and severability provisions. He noted that the ordinance would be dated upon adoption — “if it is adopted” — emphasizing that Tuesday’s action was strictly procedural.

After the reading, Chairman VanDusen reiterated that no vote or discussion was required at this stage.

“That is the first reading of Ordinance Number 83,” VanDusen said. “It’s required that we have the first reading, and that takes care of that.”

A second reading — and potential final action — will be scheduled at a future commission meeting.

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