South Dakota Property Tax Bills: What Passed & What Failed

South Dakota Lawmakers Debate Property Tax Relief, Education Funding

February 15, 2026 – South Dakota lawmakers in Pierre are actively engaged in discussions surrounding a series of property tax proposals, stemming from 19 recommendations generated by a tax relief task force, as well as additional proposals from Governor Larry Rhoden and individual legislators. A flurry of bills were considered on Thursday, with some advancing and others being set aside, according to reports.

The legislative activity follows Governor Rhoden’s recent signing of a property tax bill into law, signaling a commitment to addressing concerns about property tax burdens across the state. The specifics of that bill were not detailed in available sources, but its passage indicates a willingness to act on the issue.

Alongside property tax discussions, lawmakers are also focusing on education funding, specifically addressing excess school taxes and minimum state funding levels. Bills related to these issues are moving forward in the legislature, suggesting a broader effort to address financial challenges within the state’s education system.

The current legislative session builds upon actions taken in the previous year. According to reporting from March 14, 2025, Governor Rhoden successfully passed a property tax measure during the 100th legislative session. However, a proposed $825 million prison project failed to garner sufficient support.

The 2025 session also saw a significant victory for a growing anti-pipeline Republican faction, which successfully pushed through eminent domain reform legislation. This bill effectively delayed Summit Carbon Solutions’ planned $8.9 billion CO2 pipeline project by restricting the company’s ability to utilize eminent domain for land acquisition.

Governor Rhoden also exercised his first veto power during the 2025 session, blocking an expansion of a child care assistance program for certain families. This decision highlights a potential difference in priorities between the governor and some members of the legislature regarding social welfare programs.

The 2025 legislative session, characterized by a Republican supermajority and influenced by figures like former Governor Kristi Noem and President Donald Trump, focused on conservative legislation impacting areas such as gun rights, voting procedures, education, property rights, and policies concerning transgender individuals. Democrats proposed alternative measures related to child care, deepfake technology, and the repeal of capital punishment.

During the 2025 session, a total of 489 bills, 44 commemorations, and 38 resolutions were processed over a 38-day period. The legislative focus included blocking carbon capture companies from utilizing eminent domain, as codified in House Bill 1052, which prohibited the use of eminent domain for pipelines carrying “carbon oxide.”

Currently, in 2026, House Bill 1032 is under consideration, aiming to eliminate a limit on the accumulation of unused index factors for property taxation. The bill is sponsored by Representatives Ismay and others, indicating a continued effort to refine the state’s property tax system.

The ongoing debates and legislative actions reflect a complex interplay of political priorities, economic concerns, and differing viewpoints on how best to address the challenges facing South Dakota. The outcomes of these discussions will likely have a significant impact on property owners, schools, and the state’s overall economic landscape.