A plan to give South Dakota homeowners one‑time property tax rebates shrank from $120 million to just $202 on Wednesday after its sponsor, House Speaker Jon Hansen, dramatically amended the bill to keep it alive.
The Joint Committee on Appropriations advanced the scaled‑down HB 1261 on an 11–6 vote. Hansen was the only proponent to testify, saying he still hopes the rebate becomes part of a larger tax‑relief package later in the session.
Hansen’s original proposal would have redirected $60 million from the housing infrastructure loan fund and taken another $60 million from state reserves. The amendment cuts those amounts to $101 each.
Housing and business groups opposed the bill. Julie Johnson, representing Homes for South Dakota, argued the housing loan fund is already committed to ongoing projects and noted other legislation — including the governor’s SB 76 and the housing‑program update in SB 204 — would also draw from or modify that fund.
Mitch Rave of the Greater Sioux Falls Chamber said the small, one‑time credit would not deliver meaningful or broad property‑tax relief.
Sen. Taffy Howard, the bill’s Senate sponsor, moved to advance the amended version, saying lawmakers still need “broad relief” for all homeowners. Opponents, including Sen. Glen Vilhauer, countered that the plan no longer meets that standard.
Rep. Al Novstrup supported moving it forward, saying the drastically reduced cost would not harm housing programs.
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