By: Gov. Larry Rhoden

We just wrapped up the 2025 legislative session – our 100^th in South Dakota’s history. It’s been quite a ride. Not only did we celebrate this history of our state in this Capitol, but we also navigated a historic succession of power. I stepped into the role of governor mid-session, and that’s never happened in South Dakota history. I’m proud to say we didn’t just keep the ship afloat – we made real progress to keep South Dakota strong, safe, and free.

This session, we got things done. The first bill I signed banned sanctuary cities in South Dakota. That’s a clear statement that we support President Trump and Secretary Noem in their work to keep our communities safe from cartels and human traffickers. We also passed pro-life and pro-Second Amendment bills that reflect who we are as a state.

The House and Senate passed SB 216, my bill to address the rising burden of property taxes on homeowners. I signed it in the Capitol Rotunda to highlight the importance of this issue for our people. That’s a win for homeowners, but there’s more work to do.

We delivered South Dakota’s 136th consecutive balanced budget. That took some tough calls, including over $70 million in cuts to executive branch agencies, all proposed by the Governor’s Office. I’ve heard plenty of folks in Pierre say we need to trim spending to ease property taxes.   I’ve wrestled with property taxes and spending for years in the legislature; so I figured it’s time to break it down for you plain and simple.

Here’s the truth: the state collects $0 in property taxes – we don’t collect a penny. I told that to the leader of a South Dakota trade organization the other day, and he said – and I’m just the messenger here – “bullsh!t.” But it’s fact!

So if the state doesn’t collect property taxes, where does the money go? 56% funds our schools. Counties get 27%, cities 13%, and townships and special districts split the rest.

Then how do we cut property taxes? We’ve got three options: cut spending, shift the burden, or find new revenue. Cutting spending means slashing school budgets or county roads and public safety – there’s not the will for that. Shifting it – like we’ve seen unintentionally with rising home values – won’t fly either.

I’m taking a deeper look at option three: find new revenue to provide direct property tax relief. And when we do so, we’ll make it optional for counties. No mandates – each county will decide for themselves, either through their county commission or by a vote of the people.

This won’t be some top-down fix. It will be real tax relief for property owners, tailored to local needs. I will share this proposal with the legislature’s Property Tax Relief Task Force prior to their first meeting, and they will be able to chew on this over the summer. I’m open to more ideas, more imagination, more creative problem-solving – we need to focus on solutions, not excuses. Together, we’ll keep South Dakota the best place to live, work, and raise a family.