They called it the largest property tax cut in South Dakota history. The governor signed it. The lieutenant governor explained it. Everyone looked very pleased with themselves.
So what did you actually get?
Let's find out.
Two Bills. One Big Claim.
Governor Larry Rhoden signed two bills that together are supposed to deliver historic property tax relief to South Dakota homeowners.
Senate Bill 96 gives counties the option... and notice that word, option... to levy up to a half-cent sales tax. If a county does that, the revenue goes toward reducing property taxes.
Senate Bill 245 is the bigger one. It dedicates three-tenths of a percent of state sales tax to property tax reduction... but only after the state sales tax rate bumps from 4.2% to 4.5% in July 2027. In the meantime, it pulls $56 million from the state's reserves as a one-time shot of relief.
So: some counties might cut your property taxes by raising your sales tax. And the state will cut your property taxes by raising your sales tax... just not until next year.
You're not paying less. You're paying differently.
How Will You Know What You Saved?
This was apparently a pressing enough question that both the governor and lieutenant governor felt the need to address it in public.
Lieutenant Governor Tony Venhuizen explained that under SB 245, your "owner occupied general ed" levy will simply be lower on your statement... no separate credit line, just a smaller number. You're supposed to notice.
Governor Rhoden said SB 96 is more transparent: if your county opts in, the statement will show what your taxes would have been versus what they are now, with the savings spelled out.
So one bill quietly lowers a number. The other tells you exactly who to thank. Politicians gonna politic.
Here's What the Honest People Said
Chris Lilla, Minnehaha County's Equalization Director, called SB 96 a "good approach"... and then immediately identified who it's good for.
"Anytime you give a discount to somebody for any reason, you're asking someone else to pick up that burden," Lilla said. "This is giving a discount to primarily your upper-income earners that can afford their own homes and shifting that burden to some degree to the ones that cannot."
In other words: if you own a home, you get a break. If you rent... and your landlord doesn't own in a county that opts in... you're just paying more sales tax with nothing in return.
Republican Senator Brandon Wipf of Huron was even more direct on the Senate floor:
"This may feel like a good idea now because it's easy right now, but in a few years, we will all be blamed for forcing opt-outs in our districts. When our schools are opting out in two years because we weren't able to fund them, they will look squarely at the faces in this room and say that we had a choice, and we chose wrong."
That's a sitting Republican senator warning his own caucus that they just found a creative new way to underfund schools. They passed it anyway.
What This Means for South Dakota Homeowners
If you own a home in South Dakota, here's the practical rundown:
- ›Starting now: A $56 million one-time disbursement from state reserves should reduce your 2026 property tax bill modestly. You'll see it as a lower levy... no fanfare, just a smaller number.
- ›Starting July 2027: A permanent (until it isn't) portion of state sales tax gets redirected to property tax relief under SB 245.
- ›Depending on your county: Watch for a local vote on SB 96. If your county commissioners opt in and raise the sales tax by up to half a cent, your property tax bill should drop further. Your sales tax bill will not.
To see your county's current due dates and treasurer contact info, find your county here.
The Bottom Line
South Dakota homeowners will likely see a real... if modest... reduction in their property tax bills. That's not nothing.
But the money doesn't disappear. It moves. It comes out of the state's savings account once, and then it comes out of everyone's pocket at the checkout counter going forward. The people who benefit most are the ones who own the most valuable property. The people who bear more of the shifted burden are the ones who rent.
That's not an accident. That's a choice. And as Senator Wipf put it... when the schools start hurting, everyone's going to remember who made it.
South Dakota property taxes are due in two installments... April 30 and October 31. Set up a free reminder so you don't miss yours.