Week 9 – Session 2026

Rep. Weisgram, House Prime Sponsor of SB 228, joined the Governor for the official bill signing.

Session 2026 wrapped up on Thursday, March 12th. After nine weeks of very busy agendas, committee meetings, and House floor sessions, it was time to say farewell to my colleagues and reflect on the accomplishments of the 101st Session of the South Dakota Legislature. In some respects, saying goodbye to fellow legislators reminds me of saying those same words to college friends at the end of a spring semester. Most of us thought we would be back in the fall but didn’t really know for sure; term limits, elections, and life changes are always the variables for legislators.

With the passage of SB 245 this week, the Legislature and the Governor will take credit for the largest property tax cut in the state’s history. That is a correct statement, but remember that it will be accomplished by capturing and applying the increase in sales tax that occurs in July 2027 (moving from 4.2% to 4.5%) and applying one-time funding ($56M) from state reserves to fund property tax relief beginning in January 2027.

You may remember that in March 2023, the Legislature reduced the sales tax from 4.5% to 4.2% with a three-year "sunset" provision that expires July 1, 2027. It is the gleaning of these increased anticipated revenues that will make property tax reductions ongoing. Combine that with SB 96, which passed the week before: if counties proceed with the option of increasing sales tax by another 0.5% to apply toward owner-occupied property taxes, homeowners will see substantial reductions.

All of this was accomplished during this legislative session, and while many will be happy about it, I am somewhat melancholy that the legislation does not apply some of that increased sales tax revenue to the people who teach our children, those who work in nursing homes attending to Medicaid residents, and our state’s workforce. Hopefully, some of the savings homeowners receive from these two pieces of legislation will be spent locally on goods and services to further enhance our economy and revenue stream.

Another accomplishment of the Legislature this year was the passage of HB 1220 and SB 221, which dealt with the regulation of vaping stores. These retailers focus on selling electronic cigarettes, e-liquids, vaporizers, and related accessories, with many of their customers seeking alternatives to smoking. Unfortunately, some of these retailers have been selling nicotine and illegal products to minors. This trend provided the motivation for legislation that creates a licensing system for vape retailers to conduct annual compliance checks.

The new laws also establish Class 2 misdemeanors for violations such as failing to maintain records of products sold, failing to secure licensing for distributors and wholesalers, and allowing vending machines without an age-verification system. We were one of only nine states that lacked strict licensing for nicotine sales, so this was much-needed legislation.

HB 1200 appropriated money for grants to non-profit organizations supporting victim services, including assistance for victims of domestic violence, sexual assault, and abuse. Locally, this means support for the Missouri Shores Domestic Violence Center. I am happy this legislation passed, although it did not receive as much funding as originally requested. These impressive non-profit organizations do so much good with modest funding; I am elated that the legislation passed and grateful to have this resource in our community.

HB 1230 failed this year, but I’m calling that an "accomplishment." This legislation aimed to significantly weaken the Governor-controlled "future fund" by allowing employers to opt out of the mandatory quarterly fee that funds it. As an employer, I remember a small percentage fee associated with the employer unemployment insurance reserve fund that we contributed to—that being our contribution to the future fund.

I also remember it being around since the late 1980s. Although there may have been controversial uses of the fund by previous administrations, I see its value as an economic development tool that can influence whether a company locates in our state. It is also used to fund the popular Build Dakota Scholarship program.

Of course, the most important thing we do is pass a balanced budget each year, and once again, that came to pass yesterday as well. For 137 consecutive years, South Dakota has pursued and delivered on the commitment to responsible fiscal management, operating without an income tax. We maintain an AAA bond rating from all three major rating agencies, which lowers our borrowing costs as investors accept lower yields due to our enhanced financial reputation.

As we look toward the future, however, I feel the Legislature and the administration must refocus our efforts to grow business-friendly incentives. This will allow us to keep pace with neighboring states and foster new and existing home-grown businesses to invest in, and with, South Dakota. Our kids deserve and need our best efforts to make this happen.

Thanks again for reading my legislative updates. It’s been the honor of a lifetime to serve District 24 and South Dakota. See you on down the road.

– mw