Property taxes are one of the state’s biggest headlines heading into the next legislative session.
With 19 recommendations from committee ranging from minor to radical, other lawmakers are beginning to weigh in.
The state property tax commission walked away with a slate of recommendations, and while that doesn’t mean they all will become law, they will be front of mind as session kicks off.
Compounding the property tax debate is two caveats – South Dakota’s already low-tax nature making further cuts a challenge to navigate, and the appetite from the public for property tax relief.
Looking at the bigger picture, Gov. Larry Rhoden said these 19 recommendations aren’t the only ones on the table.
“We had a property tax deal, a half-cent local option – local option for counties," Rhoden said. "We offered that to the task force on property tax reduction, and it doesn’t look like they’ve done anything with it. Assuming they don’t, that will be offered by me as a governor’s bill in the upcoming session.”
Rhoden said his bill is still alive despite being left at the altar by the commission.
“In some ways, I would rather have my name on it," Rhoden said. "I think it’s a very viable proposal, it’s gotten a lot of attention and a lot of positive feedback from a lot of organizations. I look forward to having that discussion, because I think it is a viable way to resolve and present true property tax reduction.”
That makes two confirmed alternative property tax plans with the other being proposed by Pierre Republican Rep. Will Mortenson.
The Mortenson plan, which was also previously proposed, would make an adjustment to the statewide sales tax to fund property tax relief.
That increase of less than one percent would keep South Dakota in the bottom twenty of all statewide sales tax rates while also, according to Mortenson, easing property tax burdens.
The 2026 legislative session begins just after the new year.
