Property tax relief dominated Thursday’s (March 12, 2026) end-of-session caucus press conferences in Pierre, with Republicans calling the final package a historic win for homeowners and Democrats warning the state may pay for it later in the budget.
Republicans pointed to Senate Bills 96 and 245 as the session’s biggest accomplishments. Democrats said the same package diverts future sales-tax growth away from the state’s Big Three — K-12 education, community service providers, and the state workforce.
Republicans say the package delivers
House Majority Leader Scott Odenbach of Spearfish opened the Republican case by calling the bills “historic property tax relief bills.” He said Senate Bills 96 and 245 “are going to work really well for homeowners in South Dakota” and said lawmakers would “start to prioritize homeownership in South Dakota again.” Odenbach also defended using reserve money to help finance relief, saying right-sizing the reserve fund freed money for a better use than “just hoarding it all in Pierre.”
Later in the same Republican press conference, Speaker Jon Hansen said the package amounted to “the biggest one-time property tax cut in the history of the state of South Dakota.” Hansen said lawmakers delivered “really meaningful property tax relief for South Dakota families” and argued the compromise reflected what voters expected from the Legislature on its biggest issue. He also defended rejecting Fort Pierre Republican Rep. Mike Weisgram’s amendment, cutting the amount of sales tax money that would go into the fund. Hansen said many lawmakers believed it would have felt too anemic to taxpayers and that the caucus wanted to “prioritize home ownership.”
Democrats say future budgets will take the hit
Democrats did not dispute that voters want relief. Their criticism focused on how Republicans chose to pay for it.
Rep. Erik Muckey of Sioux Falls said Democrats preferred House Bill 1308B, which he said would have reduced mill levies, cut the grocery tax to zero, raised the sales tax to 5 percent, and still protect long-term budget sustainability. Muckey said Senate Bill 245 instead commits owner-occupied relief “on the backs of sales tax” at a level that would otherwise provide a 4.4 percent increase to the Big Three on an ongoing basis. He called Senate Bill 245 “a real threat” to keeping those areas competitive and said Democrats viewed Weisgram’s amendment as “more responsible.”
Muckey also argued politics drove the final outcome. He said lawmakers “chose politics over good policy” and predicted the issue could return quickly if the bill proves unsustainable.
Rep. Erin Healy of Sioux Falls also said lawmakers need to remember that “we are handling people’s lives” and “it’s not a game.” Healy is term-limited in the House.
The session is mostly done
The main run of the 101st legislative session is over. Legislators will meet for Veto Day on Monday, March 30, 2026 to consider overriding any gubernatorial vetoes. However, they already have at least one item on the agenda–deciding funding for the Lake Richmond dam and spillway located northwest of Aberdeen.
By Todd Epp | South Dakota Broadcasters Association.
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