On Monday, Governor Larry Rhoden cheered himself and the six counties who have taken him up on his 2026 Senate Bill 96, enacted now in SDCL 10‑52B‑10. SB 96 allows counties to impose a new sales tax, up to 0.5%, the proceeds of which the counties may use exclusively to lower property taxes on owner-occupied homes.
It seems odd that a Republican Governor would celebrate raising taxes on consumer goods…although Trump has forced them into it by making us all pay his beloved tariffs. Governor Rhoden clings to his old Republican cred by directing his Department of Revenue to headline the property tax cut and studiously avoid pointing out that the counties have to increase sales tax to pay for that cut:
Beginning January 1, 2027, six South Dakota counties will implement Governor Rhoden’s property tax cut, SB 96.
“We delivered the largest property tax cut in the history of South Dakota, and it is so rewarding to see it become reality,” said Governor Larry Rhoden. “My Department of Revenue is working hard to help the counties with implementation so South Dakotans can see the full benefit of this tax relief.”
The counties adopting the local option property tax cut are:
- Custer County
- Lawrence County
- Lincoln County
- Meade County
- Pennington County
- Fall River County
Governor Rhoden previously unveiled a county map that shows how much South Dakotans save under both SB 96 and SB 245.
Revenue from a 0.5% County Gross Receipts Tax will be directed to each county’s property tax reduction fund, which provides a credit against owner‑occupied property tax bills as required by state law. Under South Dakota Codified Law (SDCL 10‑52B‑10), counties may establish or adjust these tax rates on January 1 or July 1 of each year [South Dakota Department of Revenue, press release: “Six Counties Implement Governor Rhoden’s Property Tax Cut,” 2026.11.09].
Tax Cut… tax cut… tax cut… tax relief… tax cut… South Dakotans save… tax reduction—in the headline and each of the first six sentences, the DOR manages to say property taxes are going down. And Governor Rhoden takes full ownership of the cut, even though it’s the counties who actually deliver the relief to residents lucky enough to own homes by deciding whether or not to take the entirely optional SB 96 deal.
Only after shouting the property tax savings seven times does DOR get around to mentioning the new sales tax—formally, the “gross receipts tax”—that pays for this relief. And DOR’s wordsmith Kendra Baucom cleverly separates the sales tax from “increase” or “impose” or “new” or any other word that would emphasize that Rhoden and the complicit counties are making everybody pay higher taxes on their groceries and other purchases. DOR mentions the new sales tax, then slips in another mention of the property tax “credit”, then waits until the next sentence to gently mention that “counties may establish or adjust” the new sales tax. And even if the thorough reader reaches and recognizes those relatively gentle verbs as code for “new” and “higher” taxes, DOR makes darn sure that the grammatical subject tied to that damning predicate is “counties” and not “Governor Rhoden”.
Governor Rhoden wants to take the credit for someday lowering homeowner property taxes, but he’s carefully avoiding taking responsibility for making people pay for those tax breaks.