South Dakota Lawmakers Struggle to Agree on Property Tax Reform

Despite months of debate, the state legislature is unable to reach consensus on major property tax changes.

Published on Feb. 27, 2026

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Despite months of chatter about property tax relief, South Dakota lawmakers are unable to agree on major reform, which is probably a good thing for the Sioux Falls metro area. The 2026 legislative session is nearing its end, but the zealots and bomb throwers proclaiming that local taxes are out of control have failed to agree on any significant changes, opting instead for a blanket cap on growth of assessed value last year.

Why it matters

The lack of consensus on property tax reform highlights the philosophical and political divides within the state legislature, with some lawmakers viewing property taxes as a moral issue rather than an administrative construct. This makes it difficult to define the problem and find practical solutions that balance the needs of homeowners, renters, and local government budgets.

The details

The one significant change that may come out of this legislative session is a plan forwarded by Gov. Larry Rhoden to give counties the option of increasing sales tax by a half penny and using the money to reduce property taxes. This is seen as more of a tax shift than a true tax cut, as renters would likely see their taxes go up. The Minnehaha County Commission is unlikely to approve this swap, as there have been no major property tax protests in the Sioux Falls area, and the commission is focused on the real challenges of running the county, such as public safety and social services.

  • The 2026 session of the South Dakota Legislature is nearing its end, with only single-digit days remaining.
  • Gov. Larry Rhoden proposed his plan for a sales tax increase and property tax reduction last fall.

The players

Larry Rhoden

The governor of South Dakota who has proposed a plan to give counties the option of increasing sales tax to reduce property taxes.

Scott Odenbach

The Republican leader in the South Dakota House of Representatives, who has stated that property taxes are a moral issue for him.

Minnehaha County Commission

The county commission responsible for the real challenges of running Minnehaha County, including public safety and social services, and is unlikely to approve the governor's property tax-sales tax swap.

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What they’re saying

“To me it becomes a moral issue. Is it moral to put the burden of taxation for public services, to concentrate it to that degree onto the backs of certain people in this manner? Especially something as sacred as homeownership in the U.S.A.”

— Scott Odenbach, Republican House Majority Leader (The Dakota Scout podcast)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.