Senator Vilhauer Breaks Down Historic Tax Relief and Infrastructure Wins for Codington County

Northeast Radio SD News – Watertown, SD - Fresh off the legislative Session in Pierre, District 5 Senator Glenn Vilhauer visited the Codington County Commissioners on Tuesday morning to deliver a detailed post-session briefing. His report centered on a “solution-seeking” Session that ultimately secured millions for local bridges and paved the way for what could be the most significant property tax reduction in the county’s history.

Addressing the board as the state wraps up its final legislative days, Vilhauer struck a cautious note of optimism. “I jokingly tell people, well, we probably did enough damage for one year, so let’s get out of there,” he quipped, before diving into the financial wins headed toward Northeast South Dakota.

Bridges and Backroads: The SB 240 Boost

One of the primary highlights of the update was the passage of Senate Bill 240, which allocates $5 million in emergency funding for rural access infrastructure. The program is a revitalization of a previously exhausted fund and is designed to help counties and townships inventory and repair small structures—specifically bridges on secondary roads.

The funding is expected to be distributed pro rata based on the number of small structures in each county. While Vilhauer admitted the administrative side of the bill is still being polished, the impact is immediate.

“I don’t know the mechanics of how that will all be implemented,” Vilhauer told the board, “but that is something that we can probably take advantage of... $5 million available now to the counties and the townships to address bridges across the state.”

The news was welcomed by the commissioners, who noted that Codington County has historically been a leader in utilizing these funds.

Commissioner Myron Johnson highlighted the direct feedback from local leaders, stating, “I have townships that have just talked to me and said they really appreciate the help that we’ve been able to give them. So, thank you for whatever part you played in getting that thing reinstated.”

A “Historical” Tax Cut: SB 96 and SB 245

The core of Vilhauer’s presentation focused on a legislative package aimed at providing “aggressive” property tax relief. The two pillars of this plan are Senate Bill 96 and Senate Bill 245.

Senate Bill 96 provides counties with a new “local control” tool: the option to implement an additional 0.5% sales tax specifically to fund owner-occupied property tax credits. Unlike a general tax increase, every cent generated from this gross receipts tax must be applied directly to reducing the property tax burden for homeowners.

Vilhauer presented data from the Bureau of Finance and Management (BFM) showing a staggering potential impact on local residents.

“Codington County was up to a 22% reduction in owner-occupied taxes if this were fully implemented,” Vilhauer revealed. “Every county would benefit to some extent on this.”

When paired with Senate Bill 245—which redirects revenue from a scheduled state sales tax increase (from 4.2% back to 4.5%) into a homeowner property tax reduction fund—the total relief is unprecedented.

https://www.youtube.com/watch?v=QBKD0lWOqLU

“Between Senate Bill 96 and Senate Bill 245, you’re probably looking at somewhere across the board in the state, probably about a 40% reduction in owner-occupied property taxes,” Vilhauer estimated.

“The Devil’s in the Details”

Despite the high numbers, both the Senator and the Commissioners acknowledged that the path to implementation is complex. The board noted that previous iterations of similar programs were difficult to navigate.

Vilhauer agreed that the choice now rests with the local government. The county commission has the authority to pass the tax relief option by ordinance or to refer it to a public vote. Vilhauer also noted that the tax structure allows counties like Codington—which serve as regional shopping hubs—to shift a portion of the tax burden onto out-of-state visitors.

“We’re going to benefit from our neighboring towns and people around here that are going to come to Watertown and shop,” Vilhauer added. “The option is out there now that you did not have in the past.”

Protecting the Ballot Box

Beyond the balance sheets, Vilhauer touched on the “pervasive feeling” regarding election integrity that dominated many committee hearings. He noted that while dozens of bills targeted voter registration and election fraud, many were “solutions looking for problems.” He specifically highlighted the defeat of a bill that would have required hand-counting all ballots—a move he said would have been a massive administrative and financial burden on the county.

“It’s not here in South Dakota,” Vilhauer said regarding widespread election fraud. “We’ve got areas that maybe have problems, but to try to throw the baby out with the bathwater... it was frustrating.”