South Dakota Senate Advances Governor's Property Tax Relief Bill

The legislation would allow counties to enact a half-cent sales tax to cover some property tax fees.

Feb. 24, 2026 at 7:10pm

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The South Dakota state Senate has passed Governor Rhoden's proposed changes to property taxes on a 20-to-14 vote. The bill would give counties the option to enact a half-cent sales tax that would cover some property tax fees.

Why it matters

Property taxes are a major expense for many South Dakota residents, and this bill aims to provide some relief by allowing counties to raise funds through a sales tax increase instead. However, there are concerns that the tax break could be funded by tourists rather than residents.

The details

The bill passed the state Senate and will now move to the House for further consideration. If enacted, the legislation would give counties the ability to implement a half-cent sales tax increase to cover certain property tax fees.

  • The state Senate passed the bill on February 24, 2026.

The players

Governor Rhoden

The governor of South Dakota who proposed the property tax relief bill.

State Senator Taffy Howard

A state senator who voted for the bill but expressed concerns that the tax break could be funded by tourists rather than residents.

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What they’re saying

“The bill is one step closer to delivering meaningful relief for South Dakotans.”

— Governor Rhoden

“I was concerned the tax break would be funded by tourists.”

— State Senator Taffy Howard, State Senator

What’s next

The bill will now move to the state House for further consideration.

The takeaway

This legislation aims to provide property tax relief for South Dakota residents, but there are concerns that the funding mechanism could place a greater burden on tourists rather than residents.