Property taxes are possibly the biggest political debate of 2026 in South Dakota. With gubernatorial and legislative elections around the corner, any one of the nearly two dozen proposals may face additional political challenges before they move forward.
Gov. Larry Rhoden’s property tax relief plan would allow counties to consider a half-cent sales tax to go hand in hand with reduced rates on owners.
Despite the sheer volume of options on the table, Rhoden said he believes he can cut through the noise.
“There are a lot of proposals out there that completely miss the mark," Rhoden said. "When we heard a certain proposal here a while back it took me about ten minutes to put together what it represented and how badly it missed the mark as far as providing relief to areas that need it the most.”
Rhoden is referring to a proposal from Congressman Dusty Johnson, who many perceive has his main rival in the 2026 Republican gubernatorial primary.
Rep. Johnson’s proposal would offer $400 in tax credits to property owners and deferral of property tax payments by two years for first-time homebuyers.
In a statement, Johnson wrote, “South Dakotans are getting squeezed by rising property taxes. It keeps our state on solid financial footing, protects our law enforcement and public-school funding, and provides real relief to every homeowner.”
In a recent interview, Johnson said the governor's budget address amounted to “shrugging of the shoulders.”
In turn, Rhoden said if relief is the goal for state government, the Johnson proposal doesn’t offer enough, especially to the counties most in need.
“Under (the Johnson) proposal they would see an eight percent reduction in property tax on owner-occupied," Rhoden said. "Under my proposal, it was fifty percent. They would see dramatic results and reduction under my proposal. It wasn’t just Johnson that proposed it, I think (Jon) Hansen had also. They were scuffling back and forth on whose idea it was. They can scuffle all they want, it misses the mark.”
Rhoden said those most impacted counties are Lincoln, Pennington, and Minnehaha.