GOVERNOR RHODEN AND LEGISLATURE REACH CONCENSUS ON PROPERTY TAX PROPOSAL
PIERRE, S.D. (Austin Goss / SDBA) – A task force made up of state lawmakers and members of Gov. Larry Rhoden’s administration have come to terms on a property tax relief package.
The governor announced the breakthrough Thursday morning during a weekly press conference, flanked by most of the state lawmakers who sat on the property tax workforce group. Rhoden said that he and the entire team of 10 lawmakers had agreed to the legislation they had drafted.
The five-section piece of legislation comes in as an amended form of Senate Bill 216, a “hoghouse” bill introduced ahead of the deadline to serve as a placeholder for an eventual property tax relief package.
The comprehensive measure would limit the increase in owner-occupied assessments to 3 percent countywide for the next five years. It would also cap the amount that local governments and school outlay budgets can grow as a result of growth — new construction — to 2 percent or actual growth from the previous year, whichever is less.
Further, renovations to existing owner-occupied homes that add 40 percent or less of value to the house will be excluded from the growth calculation.
“Local governments shouldn’t need to grow just because a homeowner makes a small improvement,” Rhoden noted on this part of the proposal.
Lastly, the measure would increase maximum income limits for the state’s assessment freeze program. They are currently set at $35,000 for single-member homes and would rise to $55,000. For multi-member homes, the cap would rise to $65,000. The maximum eligible home value for the program would go from $350,000 to $500,000.
One of the main priorities of the group was to avoid raising other taxes in order to accommodate a sales tax relief package. Several proposals that have been floated this legislative session have included raising the sales tax rate in some capacity — seasonally or permanently — in order to cut property taxes.
Rhoden clarified that though no such accommodation would be made, any move to provide property tax relief to one class of properties, in this case owner-occupied, would represent a shift to other classes in some form.
“This does not rely on any kind of increase in outside taxes,” Rhoden explained. “But it does represent a shift. What I have said before is when you tweak one class of property or another, that represents a shift. But this is a justifiable shift in my mind in this case.”
The governor said that his office would not take a stance against any other property tax proposal despite the introduction of his own legislation. Lawmakers, including many on the governor’s property tax work group, have introduced separate bills this year also aimed at property tax reform.
Members of the group touted the legislation, which will likely see its first action in committee next week.
“This was a bold move by the governor, and we look forward to continued discussions as bills progress through the House and Senate,” said Rep. Liz May. “These bills aim to address other areas that will compliment the work we’ve done with the governor.”
Fellow workgroup member Sen. Taffy Howard echoed that sentiment.
“Homeowners across the state, especially in a select few areas, have seen property taxes outpace personal income, and in some areas those increases have been exorbitant,” Howard said. “I am very glad Gov. Rhoden has made this one of his first priorities.”
May and Howard are both West River Republicans.
Property tax relief has been a hot topic over the last several legislative sessions, but no solution has made it to the governor’s desk. But with skyrocketing tax bills in the owner-occupied category, some lawmakers say a solution needs to get to the governor this year, as voters begin to eye potential solutions themselves through a potential ballot issue.
STATE LAWMAKERS CLASH OVER LONG-TERM $340 MILLION LEASE DEALS
PIERRE, S.D. (Todd Epp / SDBA) – South Dakota lawmakers debated a controversial 30-year state office lease agreement during Thursday’s House session, highlighting tensions between government spending and operational efficiency.
Representative Julie Auch, R-Yankton, challenged the lease for two One-Stop centers in Sioux Falls and Rapid City.
“Do you remember voting for hundreds of millions of dollars to build a new facility, which would then be leased out for 30 years?” Auch asked fellow legislators. “I don’t.”
The One Stop centers consolidate state services in one building and replace facilities spread throughout Sioux Falls and Rapid City.
The Sioux Falls location, a 284,000-square-foot building at 1501 S. Highline Drive, saw annual rent increase from $2.06 million to $7.64 million — a 270% jump. The lease rate is $26.92 per square foot, with planned inflationary increases every five years.
A companion Rapid City facility, a 100,000-square-foot building, experienced similar cost escalations with a 177% increase in office expenses.
Representative Jack Kolbeck, R-Sioux Falls, defended the procurement process. The Bureau of Administration conducted a public request for proposal in 2022, receiving multiple vendor responses.
Representative Bethany Soye, R-Sioux Falls, warned about potential legislative power erosion.
“Our government operates through systems of checks and balances,” Soye said. “We’ve been slowly giving away our authority.”
The proposed bill would have required legislative approval for leases exceeding 15 years or $20 million. The measure failed, with 31 votes in favor and 37 opposed.
The leases, awarded to Dream Design International — owned by Rapid City developer Hani Shafai — were originally negotiated during former Governor Kristi Noem’s administration. Shafai has denied political influence, though he acknowledges making campaign contributions.
State officials argue the One-Stop centers will improve government services and potentially save $31.6 million over 30 years. The Joint Committee on Appropriations has formed a subcommittee to investigate the projects further.
There is a similar bill pending in the Senate.
The controversy underscores ongoing debates about government spending, transparency, and long-term financial commitments.
SOUTH DAKOTA HOUSE OF REPRESENTATIVES MAKE BIG CHANGES TO REQUIREMENTS FOR CONSTITUTIONAL AMENDMENTS AND ALSO VOTER RESIDENCY RULES
PIERRE, S.D. (SDBA) — South Dakota House members battled over election legislation Thursday, enacting significant changes to constitutional amendment requirements.
They also tightened voter residency rules.
In the key vote, lawmakers approved House Bill 1169 by a 60-9 margin, altering how constitutional amendments reach the ballot. The measure mandates petition gatherers to collect signatures in all 35 Senate districts, ensuring broader geographic representation in the amendment process.
“A handful of counties can decide what constitutional amendments go before voters,” Rep. Rebecca Reimer, R-Chamberlain, arguing for geographic diversity in the petition process.
The House voted 47-22 for House Bill 1066, requiring voters to maintain residence for 30 consecutive days where they “live and usually sleep.”
“This is really like a good TV program — to be continued,” Rep. Mike Kayser, R-Sioux Falls, linking the bill to yesterday’s (Wednesday’s) debate on similar issues.
However, representatives narrowly rejected House Bill 1220 in a 33-36 vote. The measure, which aimed to streamline the reporting of deceased voters, faced opposition because of concerns about regulatory complexity.
“If you worry about regulations and the words we wind up within our code, this is a prime example,” said Rep. Will Mortenson, R-Fort Pierre, leading opposition.
The bills show a continuing focus on election processes at the session’s midpoint.
BODY FOUND AT SCENE OF BRANDON STANDOFF/HOUSE FIRE
BRANDON, S.D. – South Dakota Attorney General Marty Jackley and the South Dakota Division of Criminal Investigation (DCI) confirm that a body of a male subject has been found at a home in Brandon which was destroyed by fire following a standoff with law enforcement Wednesday.
“There is no further threat to the public, and we are kindly requesting that the public avoid the scene to allow authorities to complete our investigation,” said Attorney General Marty Jackley.
The name of the person found is not yet being released pending notification of family members. An autopsy will be performed.
United States Marshals Services and the Brandon Police Department were at the home, located at 113 W. Confier St., to serve an arrest warrant. The subject of the arrest warrant had five outstanding warrants from Lincoln County, including felony drug offenses and possession of a firearm with an altered serial number. The remaining three warrants were two felony warrants for bond violations and a misdemeanor traffic warrant.
Shots were fired from the home during the event, which lasted several hours. Law enforcement did not return fire. The home eventually started on fire. There were no injuries to law enforcement or members of the public.
DCI is leading the investigation which includes investigating the origin of the house fire. More details will be released when available.
