South Dakota Gov. Larry Rhoden on Tuesday introduced legislation aimed at cutting property taxes and giving counties greater flexibility in how they raise revenue.
The proposal, Senate Bill 96, would allow counties to replace a portion of their property tax collections with a half-cent sales tax, shifting some of the tax burden away from homeowners and onto broader consumption — including spending by tourists and out-of-state visitors.
“South Dakotans deserve meaningful property tax relief, and this bill delivers it,” Rhoden said in a statement. “It gives people in each county the freedom to decide what works best for them while keeping our economy strong, our taxes low, and opportunity wide open.”
Under SB 96, counties would not be required to adopt the sales tax option. Instead, the proposal is voluntary and would be subject to approval by local voters. Residents could also initiate a vote themselves to adopt the change in their community.
The governor emphasized that the plan is designed to provide local control, not impose a one-size-fits-all mandate from Pierre.
“This is a commonsense, conservative plan — not a mandate, but a choice,” Rhoden said. “It gives South Dakotans a voice over where their taxes come from.”
Rhoden previously outlined the proposal during his State of the State Address, where he highlighted property tax relief as a key priority for his administration.
Supporters of the bill argue that allowing counties to shift some reliance from property taxes to sales taxes could ease pressure on homeowners and farmers while capturing revenue from tourism and non-residents who use local services but do not pay property taxes.
The governor’s office says Rhoden will hold a series of property tax town halls in the coming weeks to hear directly from constituents as lawmakers debate the proposal.
Additional information on the plan and upcoming events is available through the governor’s office.
