Request for the Department of Revenue to Enforce Statutory Limits on Road District Fees

Dear Ms. Semmler and South Dakota Department of Revenue,

I am writing as a concerned South Dakota landowner regarding the collection of road district fees.

Your department has previously published materials that clearly distinguish between a special assessment and a special maintenance fee (SDCL 9-43-138), the latter being a tool available only to municipalities and limited to properties fronting and abutting the improvement. Despite this, many road districts are imposing a uniform flat fee and counties are collecting it as though it were a lawful special assessment.

This practice appears to directly contradict the limited powers granted to road districts. SDCL 31-12A-21 expressly authorizes only two funding mechanisms: levies (ad valorem taxes based on value) and special assessments (benefit-based with required procedures). The Legislature deliberately chose these two tools and pointed to Chapter 9-43 for procedural guidance on how to impose a special assessment – not as an invitation to create new, unregulated charges.

County auditors are described by your own department as the “watchdogs” of the county for property taxes, with a duty to ensure that requests from taxing entities follow all state laws. Simply processing and apportioning flat fees without verifying compliance with SDCL 31-12A-21 undermines that important safeguard.

The protection of citizens’ rights and property is paramount. When government entities are allowed to blur or cross statutory lines, we risk eroding the very liberties we hold dear. If a taxing authority can arbitrarily impose fees not authorized by law, what is to stop escalating demands that could eventually force citizens to sell their property?

We already have clear statutes defining narrow powers for road districts. It should not fall on ordinary citizens with homes and full-time jobs to file lawsuits simply to force government entities to stay within their legal boundaries. That responsibility lies with the departments tasked with oversight – including the Department of Revenue and county auditors.

I respectfully ask that the Department of Revenue:

• Reaffirm that road districts are limited to the powers expressly granted in SDCL 31-12A-21.
• Provide clear guidance to county auditors on the proper classification and collection of road district charges.
• Ensure that only lawful levies and special assessments (following required procedures) are accepted and apportioned.

The people of South Dakota deserve departments that actively protect their rights and uphold the rule of law, not ones that passively facilitate practices that stretch beyond statutory authority.

Thank you for your attention to this important matter. I look forward to your response.

Sincerely,
A Concerned South Dakota Landowner
Custer County