Property taxes are one of the hottest topics of 2026 in the state Capitol. Now, it’s crunch time for bills trying to survive committees.

The property tax relief debate created a glut of bills for lawmakers to process, and another has cleared its first hurdle. HB 1308 is brought by Lincoln County Republican Tim Czmowski.

He said the bill provides property tax cuts by shifting budget priorities like sales taxes while proactively providing a wage increase for state employees.

“Each legislative session will determine the actual amount of the wage adjustment each year," Czmowski said. "If (lawmakers) determine that it’s greater than a two percent need, there will need to be more funding to award that. If it’s less than two percent, the funds will be there, and it will be available for other priorities or emergencies that come up on an annual basis.”

Czmowski said his bill would move the state general sales tax to 4.7 percent, which would generate the state $187 million.

“Item two sets both the general education mill levy, and the special education mill levy to zero for owner-occupied contribution to property tax local effort," Czmowski said. "The state general funds from sales tax adjustments will increase the revenue and replace the state’s share of education funding.”

The bill advanced from the House Taxation Committee Tuesday on a vote of 10-2.

The use of sales tax to supplement a property tax cut has earned a mixed response in Pierre, though a similar plan has the support of the governor. Notably, Senate Pro Tem Chris Karr has previously described it as ‘bad tax policy’, likening it to feudalism.

It highlights the daunting task ahead of state lawmakers. Especially as Bureau of Finance and Management economist Derek Johnson notes, this particular problem is unevenly distributed across the state.

“Property tax increases vary widely across counties," Johnson said. "A uniform, statewide fix does not address all these disparities.”

Others say a sales tax-based plan balances the tax burden more evenly between property owners and renters. With the clock ticking, it’s likely this debate will come to the wire, if completed at all in 2026.