Still seeking property tax reform

By: 
Rep. Trish Ladner

As we enter February and begin our fourth week of session in Pierre, it’s remarkable how quickly the first three weeks have passed. This year has brought an overwhelming number of bills, and each time I review one, I start with a few basic questions: Is this bill addressing a real problem? Will it actually solve that problem? What unintended consequences might follow? And could this be handled locally instead of through state law? Call me old fashioned, but I thought we believed in less government, not more.
As many of you know, I have been committed to property tax reform. Not just temporary “relief,” but real, lasting change. Since the day you elected me, we’ve worked together to make meaningful progress. We passed an agricultural bill ensuring that Class 4 soil is taxed appropriately at the lower rate it deserves. We updated the tax freeze for elderly and disabled homeowners so they can remain in their homes without fear of being taxed out of them.
This session, I am supporting SB 196, which raises the income thresholds to qualify for this program: $55,000 for a single income household and $85,000 for a multi-income household, with an assessed home value of $500,000 or less.
In 2024, I introduced a bill that would have helped owner occupied homeowners by capping annual valuation increases (not market value) at 3 percent or CPI, whichever is less. That bill was defeated in committee—along with 21 other property tax bills. The only property tax bill that passed both chambers and was signed into law last year was the governor’s bill. I served on the original task force that helped develop it, and while it’s a solid start, a few small adjustments could make it truly effective.
Since taking office, property tax reform has been my primary mission. I was warned not to take it on—that it was too big, too complicated, too heavy a lift. But I’ve never shied away from hard work, especially when it affects your ability to stay in your home and thrive here in South Dakota. And even though we’ve encountered roadblocks over the past couple of years, we’ve also accomplished a great deal together.
That brings us to this session’s question of the day: Will we finally achieve real property tax reform? More than 28 property tax bills have already been introduced, with more expected before the deadline. After the past two years, it has become clear to me that unless the legislature unites behind one or two strong proposals, nothing meaningful will pass. With 105 legislators support splitting their vote across dozens of bills, it almost guarantees failure. Unfortunately, that’s exactly where we find ourselves once again.
This year, I made a difficult decision. Instead of leading the charge, I’m stepping back and choosing to support one or two of the strongest proposals brought forward by others—bills that I believe have the best chance of passing and delivering real relief while still funding our schools, counties, and essential services like snow removal, road maintenance, EMS, and law enforcement.
I do believe that if we can come together as a legislature, with your best interests at heart, we can craft the strongest property tax reform package possible. There are two promising bills that have already been introduced, and I’m encouraged by what they could accomplish. I’m holding off on sharing details until we see what additional proposals emerge over the next week or so. 
What I can tell you is this: I’m fully committed to working hard to make meaningful, substantive property tax reform a reality this session.
If this matters to you, as it does to me, let’s make sure your voice is part of the conversation. Visit sdlrc.gov to find contact information for every current legislator. Call, write, or email them and let them know where you stand. Your voice can truly make a difference.
More to come… 

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