Legislators proud of property tax relief

Like many years, the 101st South Dakota Legislative Session saw some successes, triggered some disappointment and inspired aspirations for the next session.

Overall, District 30 Rep. Trish Ladner said it was a highly successful session, with Rep. Tim Goodwin saying it was perhaps the most productive session he has ever participated in.

“The House and Senate worked together effectively to serve the people of South Dakota. Our shared focus remained clear throughout, and that was working for the people of our state,” said Ladner.

District 30 Sen. Amber Hulse said, “About halfway through, I was concerned we might not get where we needed to go due to a whole lot of political gamesmanship going on. But in the end, we pulled it together and delivered real results for South Dakotans. The final weeks showed that when there is focus and urgency, we can still get big things done.”

Without question, the biggest issue District 30 legislators heard about from constituents was property taxes.

Hulse said she is happy with the progress made on property taxes in the legislative session.

“Some critics will call it just a tax increase or a tax shift, but the numbers tell a very different story. For an increase of just 0.8 percent—not even a full penny—the average person in Fall River County could save roughly $300 to $400 per $100,000 of valuation. On a $325,000 home, that can mean a property tax reduction of at least $1,000. For the sales tax change to actually cost someone more overall, they would have to be spending over $100,000 a year on taxable goods, and most South Dakotans are nowhere near that,” said Hulse.

Hulse encouraged District 30 constituents to look into the numbers, learn how it works and seek to understand how significant the relief will be.

Although Ladner sees Senate Bill 245 as a “strong, practical step forward,” she said they are not done addressing the property tax issue.

“It provides meaningful property tax relief for homeowners by creating a Property Tax Relief Fund. For example, according to the Bureau of Finance and Management (BFM), a home valued at $325,000, when multiplied by $1.683, results in an estimated annual savings of about $547 for the property owner. That’s real, tangible relief for families facing rising property taxes,” said Ladner.

Like Hulse, Ladner said some are arguing that the tax burden is shifted to sales tax. However, the reduced sales tax of 4.2 percent was scheduled to expire June 30, 2027, and automatically return to the original level of 4.5 percent.

“This legislation does something straightforward and positive. It captures that already-planned 0.3 percent increase and directs it into a dedicated fund for property tax relief. In other words, it does not create a new tax or raise rates beyond what is already scheduled; it ensures those funds are used to directly benefit homeowners.

“By structuring the fund this way, we are using revenue that would be collected anyway and putting it toward reducing the property tax burden on owner-occupied homes. This approach creates a more predictable and sustainable path for long-term property tax relief without introducing new taxes,” said Ladner.

“Then, we passed legislation (SB 96) to allow counties to increase sales tax by a half cent, with this money going again to only owner-occupied home owners,” said Goodwin. “This is around another 20 percent reduction in your property taxes. We also passed SB 154, clarifying the eligibility of multiple garages or structures to be classified as owner-occupied. Before, you only got one garage. With this bill, you get four additional structures falling on your one home not being taxed additionally.”

However, Goodwin said he is still not satisfied with the property tax relief bills that were passed, adding that he would like to eliminate owner-occupied property taxes all together. 

“We need to continue to be helping out homeowners so they are not taxed out of their homes. We need to keep Ag taxes the same using the eight-year Olympic average that was passed a number of years ago,” said Goodwin.

Overall though, passing the largest property tax cut in the history of South Dakota was a point of pride for all three legislators. It was called a huge win for homeowners and was achieved through the commitment of the legislative and executive branches to deliver tax relief.

Beyond this, Hulse said, “I was also proud to carry 11 bills and a resolution that passed, including my anti-SLAPP free speech bill, election cleanup bills, legislation to ensure illegal immigrants do not have valid South Dakota CDLs, a veterans property tax bill and my garage clarification property tax bill.”

Ladner said, “Another accomplishment that I am proud to have co-sponsored was HB 1066, sponsored by Rep. Mary Fitzgerald, District 31—the bill to strengthen protections for homeowners and property owners against dishonest contractors, stemming from a Rapid City case where a couple was defrauded of over $50,000. As our state grows, we need to put legislation in place to protect our citizens,” said Ladner.

The legislative session came with some disappointments as well.

Hulse said, “I was disappointed that my bill to guarantee attorney’s fees for taxpayers who successfully appeal an unfair property tax assessment did not make it across the finish line. If a taxpayer has to spend money to prove the government got it wrong, they should be made whole. I was also disappointed that a transparency bill requiring notice before an opt-out vote failed. We taxpayers deserve to know when government is about to ask for more of our hard-earned money.”

Meanwhile, Ladner said, “I am very disappointed that Gov. Rhoden vetoed HB 1138. This bill would have required non-medical home care agencies to conduct background checks and obtain a state license, while specifically excluding housekeepers, cooks, rideshare drivers and similar services. It is an important measure to protect vulnerable individuals. Drawing from my experience in the corporate nonprofit sector, I understand that abuse can occur whether involving a disabled child or an adult who may be unable to communicate due to dementia, stroke or other conditions. This is a strong and necessary bill.”

As for school funding, Gov. Rhoden originally proposed a zero percent increase in his budget address.

“For many of us in the legislature, that simply wasn’t acceptable, so we got to work. With direction from legislative leadership, our appropriators worked diligently to identify funding and ultimately secured a 1.4 percent increase for teachers. While this is a step in the right direction, I want to be clear: it still falls short of what our educators truly deserve,” said Ladner.

Goodwin clarified that the property tax reductions did not affect the school funding formula, and said, “To give teachers a 1.4 percent increase is an insult, same for state employees and health care providers. I maintain that if we put more money in homeowners’ pockets, they will spend that savings, thus increase our revenues to the point where we could give all three a catch-up raise of say 20 percent without increasing anyone’s taxes.”

Hulse said, “I am glad we did not end up with a zero percent increase for schools. I am also glad we are moving more of the responsibility for school funding to the state level through the 0.3 percent sales tax increase, because that means less pressure on local property taxpayers. It is a smarter and more balanced way to fund education.”

However, Ladner believes that South Dakota must go further to ensure consistent and fair compensation for teachers in the long term, considering their critical role in shaping the future of South Dakota. She sees this as a key priority for the 2027 South Dakota Legislative Session.

Some other key priorities in her opinion are “strengthening rural health care by ensuring our communities have reliable access to medical services, addressing the funding and sustainability challenges facing Emergency Medical Services, advancing rural water projects, particularly in West River, and thoughtfully addressing issues related to data centers and mining in the Black Hills.”

Looking ahead, Hulse expects school choice to be a major issue in the next session.

“I also think we will see more debate around economic development programs and likely more election-related legislation after this year’s major elections,” said Hulse.

Meanwhile, Goodwin would like to see property assessments that result in higher insurance rates addressed.

“Perhaps challenge the word assessment, which is decided differently in each of the 66 counties, and make it an appraisal that could be more easily challenged when assessments spike to unrealistic levels. Also, we passed last year (2025) that counties could only increase their budget by three percent. However, they still have the authority to increase your home assessment to whatever they feel like, as long as the entire county doesn’t go over the three percent increase. I’d like to have a bill that says each individual home is capped at  three percent,” said Goodwin.

Goodwin would also like to see veteran suicide rates and the potential of a mentorship program addressed in the 2027 session.