MITCHELL, SD (Mitchell Now) — Property tax relief is again expected to be a top issue for South Dakota lawmakers in 2026, after a summer-long legislative task force advanced 19 recommendations aimed at lowering bills and changing how local governments and schools are funded.
Rep. Jack Kolbeck, R-Sioux Falls, a member of the House Appropriations Committee, said lawmakers will have to sort through a long list of options before deciding what can pass and what provides relief without creating problems for schools, counties and cities.
“There’s 19 bills been proposed already, and two that are in the hopper,” Kolbeck said. “So we got a lot to look through and decide which ones are going to be the best for, not only the property tax owners, but also … the school districts and the counties … and … the homeowners as well.”
The Comprehensive Property Tax Task Force was created by the Legislature in 2025 and met from May through October, with its final meeting held Oct. 22, 2025, according to the group’s final report.
Funding could be a major hurdle. The state’s Bureau of Finance and Management has projected ongoing FY2026 general fund revenue at about $24.5 million (0.99%) lower than the Legislature’s adopted estimate, which could complicate efforts to pay for large-scale tax relief.
The 2026 South Dakota legislative session is scheduled to begin Tuesday, Jan. 13, 2026, in Pierre.