Rhoden confident property tax changes are coming

Property taxes in the State of South Dakota have shifted away from other classes of property to put an unfair burden on those who have owner occupied status. That needs corrected.
That was the message given by Gov. Larry Rhoden at his press conference held last Thursday at the State Capitol building as part of News Media Day at the legislative session.
Rhoden gave initial comments and then fielded questions from the gathered media during the wide-ranging press conference.
Rhoden specifically mentioned property taxes during his address, saying he and the legislature were looking for ways to “tamp down” the increase in owner occupied property taxes in a “very targeted approach.”
Rhoden mentioned a vehicle bill that was introduced to the House State Affairs Committee that he said will be used to contain the final product of a working group that is working to craft legislation that deals with property taxes.
“We’ve got a working draft that has been evolving through these meetings,” Rhoden said. “More legislators, as they heard what was going on, expressed interest. As that legislation evolves, so will that committee group.”
Rhoden said rather than take a shotgun approach, the legislature needs to take a “rifle shot” and have a targeted approach to provide assistance and relief to people who are “getting kicked in the head the hardest in these increased property valuations.”
Lt. Gov. Tony Venhuizen took to the podium to discuss the issue as well, saying there is nobody in the Capitol that knows more about property taxes or has a history on working on the issue than Rhoden.
“He’s perfectly situated to bring this thing to a conclusion,” Venhuizen said. “He knows this issue backwards and forwards. This is the perfect opportunity to get this done this year.”
Rhoden was asked about the proposed funding for the new men’s state prison in Lincoln County.
The guaranteed maximum price (GMP) for the proposed new men’s prison is $825 million. The state has already set aside $567 million for the prison, and former Gov. Kristi Noem said in her budget address that the state should earn an estimated $76 million in interest on that money. That leaves about $182 million to complete the prison funding.
Stu Whitney of South Dakota News Watch asked Rhoden if the legislature does not approve the funding what the next option would be. Rhoden said he wasn’t prepared to discuss the funding not coming through.
Rhoden said he believes the money will be approved, and encouraged any legislators who have not seen the conditions at the state prison to do so. Rhoden said during his tour he saw crumbling concrete, rusty pipes and other decaying infrastructure.
“We need to resolve that, and it needs to be this year,” he said. “Failure is not an option. We have our backs against the wall. It’s a miracle we haven’t been sued as a state to this point. We’re going to get this fixed.”
A follow up question on the prison funding money from Jonathan Ellis of the Dakota Scout asked Rhoden about the statements made by the former prison warden Doug Weber who argued the state was being untruthful in saying the prison is crumbling and that the more modern parts are not being shown.
“I won’t disparage him,” Rhoden said. “But I saw it for myself. I know what I saw. That brings into question what his agenda is.”
In regards to the state and state employees’ relationship with the media, Bart Pfankuch of South Dakota News Watch told Rhoden getting good, complete information from employees at the agency level under Noem was often not possible.
“Can you do anything to open the lines of communication? Will you or can you do anything to open that door? Right now it’s very closed,” Pfankuch said.
“By all means I can,” Rhoden said. “We will address that.”
On the issue of tribal relations, Rhoden said he has opened a line of dialogue with Oglala Sioux Tribe president Frank Star Comes Out, and said before Noem left she asked several tribal leaders for a “reset” with Rhoden as governor.
Rhoden said he believes things are off to a good start as the two sides work together to form a trust.
“We will continue to move the ball forward in rebuilding a relationship with our state’s sovereign tribal nations,” he said.
On the budget front, Rhoden said he was hopeful the numbers for sales tax receipts would improve, but that it was safe to say they had not.
“I think nothing on the positive side has happened, I will say that,” Rhoden said.
Seth Tupper of South Dakota Searchlight asked Rhoden about a speech Rhoden gave to the legislature where he referenced the need to protect property rights but also the need to have predictable regulations. Tupper said it sounded like Rhoden wanted some sort of compromise, but that approach “didn’t work so well” during last year’s legislative session.
“I always respect property rights. But we still have to protect opportunity in South Dakota,” Rhoden said. “So yes, I’m confident we can find a middle ground in the legislature and accomplish both.”
When pressed by Tupper if he would sign a bill banning eminent domain for carbon pipelines, Rhoden declined to answer.
“I’m not going to comment on what I would sign or veto based on conjecture,” he said.
Rhoden told those gathered he was optimistic about the team he has crafted as he enters his first weeks as governor.
“My focus will continue to be on open, civil communications and to keep South Dakota strong, safe and free,” he said.