Gov. Larry Rhoden opened the 2026 legislative session Tuesday by urging lawmakers to recommit to civility and outlining an agenda centered on property tax relief, public safety, and economic growth.
In his first full State of the State address since taking office, Rhoden proposed giving counties the option to replace their share of owner-occupied property taxes with a half-cent local sales tax. He said a high-profile law enforcement initiative will continue statewide, and previewed legislation touching corrections, healthcare, education, abortion policy, and firearms. Lawmakers convened at noon Tuesday for what is scheduled to be a 38-day session.
Property tax option for counties
Rhoden said rising property taxes remain a top concern, particularly in fast-growing areas. His proposal would allow counties to adopt a half-cent sales tax to replace their portion of owner-occupied property taxes.
Counties could implement the tax through a vote of county commissioners, refer it to voters, or allow citizens to initiate it. Rhoden said areas seeing the largest property tax increases also tend to attract the most visitors, allowing a greater share of the tax burden to fall on tourists.
“This is a commonsense conservative plan: not a mandate, but a choice,” Rhoden said, adding that his administration has modeled the impacts for every county.
Rhoden said he plans to hold property tax town halls in Sioux Falls, the Black Hills, and southeastern South Dakota in the coming weeks.
Public safety and law enforcement
Rhoden said Operation Prairie Thunder — a joint effort between the Highway Patrol, local law enforcement, the National Guard, and federal immigration authorities — will continue beyond its initial six-month window.
He cited more than 400 people taken into custody, more than 1,000 drug charges, and 63 individuals turned over to Immigration and Customs Enforcement. Rhoden said the Highway Patrol does not have a mission to enforce immigration law but refers individuals to federal authorities when encountered during criminal investigations.
The governor also announced plans to expand so-called 287(g) agreements that allow state agencies to assist ICE and said an additional trooper will be added to the Sioux Falls Drug Task Force later this year.
Corrections and rural healthcare
Rhoden highlighted progress on corrections, including ongoing construction of a men’s prison in Sioux Falls and the pending opening of a women’s prison in Rapid City. He said the Correctional Rehabilitation Task Force has recommended adopting a prison seminary model and expanding tribal-focused rehabilitation programs.
On healthcare, Rhoden pointed to a $189 million federal award for South Dakota’s Rural Health Transformation Plan, which aims to expand access in rural areas through workforce development, behavioral health integration, and regional EMS hubs. He urged lawmakers to move quickly to authorize the funding.
Social policy and closing message
Rhoden said his administration will pursue legislation aimed at restricting abortion pills from being mailed into South Dakota and will work with lawmakers to deregulate firearm suppressors.
Closing the address, Rhoden returned to a theme he emphasized throughout the speech — his preference for convening groups and seeking consensus rather than directing outcomes.
He ended his address reading from Gov. Peter Norbeck’s 1919 state of the state address, a poetic ode to the beauty and toughness of South Dakota and South Dakotans.
