Sturgis raising mill tax levy for 2025

RAPID CITY, S.D. (KOTA) - The Sturgis City Council voted last Monday to raise the municipal mill tax levy by 3.5% for 2025.

"The city has really made a concerted effort to keep the mill levy low, and our taxes, as compared to other towns in the hills, had been relatively low and now we were at a point where we realized that we do need cash, especially in our reserves," said Deb Holland, the director of communications for the city of Sturgis.

This increase will affect the property taxes residents pay, which are determined based on the assessed value of their property.

"Well, we know it's going to go up. One of the issues that I think everybody is having is the higher evaluated prices on the homes when people are coming in and paying more than the homes are worth, so that's why we're seeing the inflated taxes going up," said Brad Schwartz, a Sturgis homeowner.

With the new tax rate now set at $4.13 per $1,000 of assessed property value, the increase is expected to generate $3.1 million in revenue, which is $186,000 more than the city collected last year.

For a house valued at $100,000, the city's portion of property taxes would increase by $14.

"I think the bigger thing is, it's just like any other purchase almost; what are you getting for it?" Schwartz said.

This additional funding will go into the city's contingency fund.

"Just like the rest of us, having some money in our savings in case the car breaks down, in case the dishwasher goes haywire, anything like that, the city needs to be thinking in those terms also," Holland said.

Holland explains the mill levy increase aims to strengthen the city's financial reserves for future needs.

While rising property taxes concern some, officials say it's necessary for Sturgis' long-term stability.