South Dakota has enacted a series of legislative measures aimed at addressing rising property tax pressures, following the signing of multiple bills by Governor Larry Rhoden. The changes introduce new mechanisms intended to ease the burden on homeowners while altering how local governments may balance lost property tax revenue.
At the centre of the reform package are two key laws. Senate Bill 96 authorises counties to introduce a local sales tax designed to offset reductions in property tax collections. A separate measure, Senate Bill 245, establishes a state-backed homeowner property tax relief fund intended to support residents facing rising property tax obligations. Supporters say the measures collectively represent the largest property tax reduction in the state’s history.
Property tax reform was among the most widely debated issues during the recent legislative session, reflecting increasing concern from residents about sharp increases in property tax bills in recent years. Backers of the legislation argue the new framework provides direct relief to homeowners while giving counties tools to maintain essential public services through alternative revenue sources.
During the signing ceremony, Governor Rhoden said the measures required extensive negotiations with legislative leadership and described the outcome as a major accomplishment of the session. He said the package demonstrated how policy-focused discussions and compromise could produce significant results for residents concerned about tax burdens.
Beyond the two primary bills, several additional laws adjust property tax administration and eligibility provisions. One clarifies the circumstances under which multiple garages or related structures may qualify as owner-occupied property. Another modifies rules governing property tax refunds available to disabled veterans and surviving spouses through existing relief programmes.
Further legislation requires property tax bills to provide access to a state website offering information about property tax systems and assessment details. Lawmakers also approved a measure eliminating the Agricultural Land Assessment Implementation and Oversight Advisory Task Force while directing the Department of Revenue to receive recommendations and produce reports related to agricultural property valuation.
Debate surrounding the reforms continues, as critics argue the changes may shift the tax burden rather than significantly reduce it, particularly through the expanded use of sales taxes to offset lower property tax collections.
