South Dakota Senate Passes Property Tax Relief Bill

Bill heads to Governor Rhoden's desk after 20-13 vote in state Senate

Mar. 12, 2026 at 4:52pm

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The South Dakota Senate has passed a bill that would provide property tax relief to homeowners in the state. The bill, which passed by a 20-13 vote, creates a property tax reduction fund in the State Treasury and redirects an expiring 0.3% sales tax to be applied to general education levies on single-family homes owned by residents.

Why it matters

This bill aims to offer much-needed financial relief to homeowners in South Dakota who have struggled with rising property taxes. However, opponents argue that the sales tax increase unfairly burdens non-homeowners with the costs of the property tax cuts.

The details

The property tax relief bill passed by the South Dakota Senate would create a new fund in the State Treasury to provide direct property tax reductions. This would be funded by redirecting an expiring 0.3% sales tax to be applied to general education levies on single-family homes owned by state residents.

  • The bill passed the state Senate on Wednesday, March 12, 2026.

The players

South Dakota Senate

The legislative body of the state of South Dakota that passed the property tax relief bill.

Governor Rhoden

The Governor of South Dakota who will receive the property tax relief bill passed by the state Senate.

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What’s next

The property tax relief bill will now go to Governor Rhoden's desk for signature or veto.

The takeaway

The passage of this property tax relief bill in the South Dakota Senate highlights the ongoing debate around how to provide financial assistance to homeowners while balancing the impacts on other taxpayers.