It isn't fair that city dwellers pay higher property tax rates to fund schools than owners of agricultural land, Sen. Stan Adelstein said Saturday, pitching a plan he says would save Rapid City taxpayers a total of $2.5 million a year.

Adelstein, R-Rapid City, and others who represent West River cities want the state to equalize the school tax, and he isn't backing down, even though the Senate taxation committee last week killed his bill proposing that change.

"Is this the time to make homeowners pay more, … when they're losing their homes?" Adelstein said at a news conference he held Saturday.

Adelstein's SB149 would have equalized the school property tax rate per $1,000 to $3.60 for agricultural and owner-occupied single-family residences alike.

In practice, Adelstein said, the total amount collected for South Dakota schools would remain the same, but owners of agricultural land would pay about $1 more and owner-occupied homes $1 less, per $1,000 of value.

"I've equalized the percentage to equalize the burden," Adelstein said.

West River legislators Sen. Tom Nelson, R-Lead, Sen. Craig Tieszen, R-Rapid City, Rep. Ed McLaughlin, R-Rapid City, and Rep. Jacqueline Sly, R-Rapid City, had signed on in support of SB149.

The bill never gained traction in the Senate, and Adelstein's attempts to amend SB80 also failed. That bill, sponsored by Senate majority and minority leaders Sen. Dave Knudson, R-Sioux Falls, and Sen. Scott Heidepriem, D-Sioux Falls, leaves the 2010 rates for school taxes in same ratio as it has been the past. Last week, the Senate passed the bill 33-1, and the House has referred it to its taxation committee.

Adelstein said Saturday that his bill's failure was more a matter of not getting the information out fast enough, not that other legislators aren't interested in changing the status quo.

"I didn't make a loud enough noise," Adelstein said. "It came very, very quickly. Eighty came rolling through. I didn't get time to get it to anyone."

With the House now set to discuss SB80, Adelstein said he won't be repeating the same mistake.

He has sent House representatives throughout the state a list of how much taxpayers in each city could save if the levy rate were equalized.

"If these 64 members of the House take a look at what's going on in their towns, and their voters ask for fairness, it will be an interesting thing to see," Adelstein said.

Adelstein said he doesn't buy the argument that agriculture property has less connection to public schools. In his district, there are many retired homeowners that have already put their children through school and still pay school taxes.

"These senators come from both the Democratic and Republican parties; East River, West River; and persuasions of Progressive, Centrist and Conservative," Adelstein's news release stated. "They all agree, however, that property taxation should be fair, transparent and accurate."

Contact Emilie Rusch at 394-8453 or emilie.rusch@rapidcityjournal.com

Under Sen. Stan Adelstein's proposal, the state would collect the same amount of money for public schools, but the property tax rate would be equalized between owner-occupied homes and agricultural property.

For a $100,000 home, school taxes would equal:

Adelstein's plan: $360

Senate plan: $462

For $100,000 of agricultural property, school taxes would equal:

Adelstein's plan: $360

Senate plan: $263

Note: Numbers under SB80 numbers are estimates, based on Gov. Mike Rounds' proposed 3 percent increase in school funding, Adelstein said.

Source: Sen. Stan Adelstein