South Dakota Governor Proposes Property Tax Cuts

Map shows potential savings for each county under new sales tax plan

Feb. 27, 2026 at 6:34pm

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Governor Larry Rhoden of South Dakota has introduced a bill that would allow counties to replace property taxes with a half-cent sales tax. The governor has released an interactive map outlining the potential savings for each county under this proposed tax reform.

Why it matters

The proposed legislation aims to help counties generate more revenue from tourists and out-of-state visitors, rather than relying solely on property taxes from residents. This could provide tax relief for homeowners while diversifying county budgets.

The details

The bill was introduced on January 16th and is currently working its way through the state House. The interactive map detailing the potential savings for each county can be accessed through the Governor's website.

  • The bill was introduced on January 16th, 2026.
  • The map outlining potential savings was released on February 27th, 2026.

The players

Governor Larry Rhoden

The governor of South Dakota who has proposed the property tax reform legislation.

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What’s next

The bill must still pass through the state House before it can be signed into law.

The takeaway

This proposal aims to provide property tax relief for South Dakota residents while diversifying county budgets through increased sales tax revenue from tourists and out-of-state visitors.