MITCHELL, SD (Mitchell Now) — South Dakota lawmakers are moving several proposals this legislative session aimed at easing property tax burdens, including expanded refunds for certain residents and a county-option sales tax plan backed by Gov. Larry Rhoden.
The House Taxation Committee approved a bill Tuesday, Feb. 24, 2026, to increase property tax refunds for low-income elderly and disabled South Dakotans through the state’s long-running refund program. Brandi Eckert of the South Dakota Department of Revenue told lawmakers the department has struggled to reach eligible residents, with about 1,000 applicants last year, according to a KELO report. The property tax refund program has existed for about 50 years. The same committee also approved a separate bill to create a Homeowner Property Tax Relief Fund.
Meanwhile, the South Dakota Senate advanced Rhoden’s property tax proposal, Senate Bill 96, passing it 20-14. The measure would give counties the option to enact up to a half-cent sales tax, with revenue used to offset a portion of property taxes. Sen. Taffy Howard said she supported the bill but raised concerns that part of the relief could be funded by tourists. Rhoden praised the vote on social media, calling it a step toward “meaningful relief for South Dakotans,” according to reporting from KOTA TV and Dakota News Network.