A New Tool for Property Tax Relief

Article Body

A New Tool for Property Tax Relief

By: Gov. Larry Rhoden
March 13, 2026

As the 2026 Legislative Session wrapped up this week in Pierre, lawmakers have spent the past couple months working through the issues that matter most to South Dakotans. We accomplished a great deal, but one thing tops it all: we delivered the largest property tax cut in South Dakota history.

When I travel the state, I hear about property taxes more than any other issue. Folks across South Dakota are saying the same thing - property taxes are getting too high, and something needs to change. That's why property tax relief was my top priority this legislative session.

Lawmakers considered dozens of proposals this year. Property taxes fund important local services like schools, roads, and law enforcement, so we had to be careful to find solutions that provide relief without putting those services at risk.

I brought a plan, Senate Bill 96, and we got it across the finish line. SB 96 allows the people in each county to replace a portion of their owner-occupied property tax revenue with a local half-cent sales tax if they choose to do so. Every dollar raised from that sales tax must go directly toward reducing property taxes.

No county is required to adopt this option. It's not a mandate - it's a choice. Local leaders and local voters will decide whether it's the right opportunity for their community.

South Dakota is a big state made up of many different communities. What works in one county may not be the best fit for another. SB 96 simply gives the people another tool so they can make the decision that works best for their county. It also broadens the tax base. By allowing counties to use a small sales tax instead, a portion of that cost can be shared by visitors and tourists - and it just so happens that property taxes have risen most in the counties with most visitors! So that's a win-win.

But my bill was not the only part of the solution. I worked with legislative leadership to get Senate Bill 245 across the finish line, which provides substantial statewide property tax relief to homeowners. Sales taxes were set to go up by 0.3% next year, so we thought it would be best to return that to the people in the form of property tax relief, and the Legislature agreed.

We listened to South Dakotans, worked with legislators, and passed these bills to provide real relief while keeping decisions close to the people.

When we signed these bills, we did it with extra fanfare in the Capitol Rotunda. Dozens of legislators stood around me because it took many hands to get this done. I'm proud of the work that we did. This record-setting property tax cut will certainly help keep South Dakota strong, safe, and free.

These bills help ensure that South Dakotans can keep more of what they've earned while keeping our communities strong. We'll keep working to make sure South Dakota remains a place where families, farmers, ranchers, and businesses can thrive for generations to come.

###