STURGIS, S.D. – The Sturgis City Council met Monday night for their final regularly scheduled September meeting with property taxes on the agenda.
The council was asked to approve changing the mill levy in order for the city to take the maximum amount allowed based on the Consumer Price Index, which is set at 3% for 2024.
The city’s mill levy calculation is used to determine the amount of property taxes residents will pay based on the assessed value of their property. The mill levy for 2023, which is for taxes paid in 2024, is .003993 or $3.99 per $1,000 in assessed property value.
The city is looking to raise that to the maximum amount allowed, which would mean an approximate $4.13 per $1,000 in assessed property value. That would increase the amount of taxes brought in for the city to over $3-million-131-thousand dollars. The 2024 tax amount is $2.94-million.
Currently Sturgis’ growth in assessed value is reported at 1.65%, though utility growth is yet to be calculated.
The Meade County Auditor determines the tax for the coming budget year based on the requested funding for the city.
The council approved the increased tax levy on a contingency introduced by Council President Kevin Forrester that anything over the 2024 amount of $2.94 million go to the city’s contingency fund.
The tax increase comes on the heels of news that the 2025 budget will face challenges due to the city’s expenses outpacing revenues.
The council Monday night also approved a resolution to oppose Initiated Measure 28, which would repeal that state’s 4.2% sales tax on groceries.
Like many municipalities across the state, Sturgis is worried about the loss of dollars should the Initiative pass in November.
The resolution passed on a 5-2 vote.
