South Dakota Lawmakers Debate Over Tax Relief and State Spending at Watertown Legislative Social

Northeast Radio SD News – Watertown, SD - With the 2026 legislative Session in the rearview mirror and a critical primary election looming, District 4 and District 5 lawmakers gathered at Lake Area Technical College (LATC) on Tuesday evening to face their constituents.

The legislative social, hosted by the Watertown Chamber and the Watertown Development Company, provided a platform for representatives to pull back the curtain on what Senator Glen Vilhauer (R-D5) described as the “sausage-making” process of state government.

Moderated by LATC President Tiffany Sanderson, the panel featured a deep dive into property tax shifts, the state’s multi-billion-dollar budget, and local frustration following the narrow defeat of a major funding request for Lake Area Tech.

The Property Tax Tug-of-War

Property taxes were the “topic of the Session,” with lawmakers fundamentally divided over whether recent legislation provides genuine relief or merely shifts the tax burden elsewhere.

Representative Matt Roby (R-D5) expressed optimism that the passage of Senate Bills 96 and 245 would finally address the rising rates that have plagued owner-occupied homes. “I actually think that these two bills combined can actually put to rest the property tax discussion for owner-occupied [homes] for perhaps a generation,” Roby said, citing projections of a 30% to 40% reduction in taxes for that class.

However, Representative Dylan Jordan (R-D4) sharply disagreed with the characterization of the Session’s work as a tax cut. “I just want to go on record—they’re saying it’s a tax cut. We did not cut taxes this Session,” Jordan argued. “We cut property taxes by raising sales tax 19%... You’ll be paying for it at the grocery store instead of property taxes.”

Representative Kent Roe (R-D4) echoed the sentiment that the move was less about saving money and more about local control over tax sources. “The attraction to me was that it gives the option for the county commissioners to swap over some tax... and that’s all it is, ultimately, is a tax shift,” Roe noted.

A “Welfare State” or Necessary Investment?

As a retired CPA serving on the Appropriations Committee, Senator Glen Vilhauer detailed the complexities of balancing the state’s $7.4 billion budget. He defended the spending increases, noting that they were driven by mandated costs in Medicaid and the Department of Corrections, as well as necessary staffing for the Treasury and Attorney General’s offices.

“Legislative Session [is] kind of like watching sausage being made; it’s not a pretty process, but in the end, you hope you got something good coming out of it,” Vilhauer joked. Despite the internal debates, he stood by the final product as a balanced approach to the state’s needs.

Representative Josephine Garcia (R-D5) remained a vocal critic of the budget’s scale and its reliance on federal funding. “We are a welfare state—60% funded by the federal government,” Garcia warned, adding, “I am not for big federal government, because what happens when that money runs out? You have a broke system.”

The LATC Trade Center: A Local Setback

For the Watertown community, the most personal moment of the Session was the failure of a one-time $5.2 million appropriation for a new trade center at Lake Area Tech. Representative Roby, who championed the bill, explained that while it garnered significant support, it fell just four votes short of the required two-thirds majority in the House.

Senator Stephanie Sauder (R-D4), a former 30-year educator, spoke passionately about the importance of investing in technical education. “We are national champions as far as schools go,” Sauder said of LATC. “By providing more programs, we’re providing more students with opportunities... we’re keeping our kids here.”

Representative Dylan Jordan, who voted against the specific funding bill, defended his position as a broader commitment to fiscal discipline. “I think we need to address spending in South Dakota because people can’t afford their life right now,” Jordan stated. “I thought it would be hypocritical of me to vote ‘yes’ for that but ‘no’ to everyone else.”

Looking Toward June 2nd

With the Session concluded, the focus shifts to the voters. Lawmakers reminded the audience that the primary election on June 2, 2026, is the next step in the democratic process. Senator Sauder noted that with only 17% of the state participating in some previous elections, a small group often makes decisions for the majority.

“Each legislative Session is not a one-off. Each Session builds on the other,” Senator Vilhauer added. “If we didn’t get something right this time around... we come back next year and try again.”

Important Voter Dates:

·        April 17: Early voting begins.

·        May 18: Deadline for voter registration.

·        June 2: Primary Election Day.

For more in-depth coverage of local government and the 2026 election, stay tuned to Northeast Radio SD News.