South Dakota Bills

passed · South Dakota · House Feb 24, 2026

HB 1136: make an appropriation for the development of South Dakota.

This bill appropriates $101 from South Dakota's general fund for state development purposes, with no specific projects or recipients defined. It authorizes the state auditor to pay expenses through vouchers and requires unspent funds to revert per standard state procedures (Chapter 4-8). The bill has no substantive policy changes, as it merely allocates a minimal sum without detailing how or where the funds will be used. It is procedural in nature, effective June 30, 2026.

failed · South Dakota · Senate Feb 24, 2026

SB 196: increase the income limits for a property tax assessment freeze.

This bill increases the income limits for South Dakota's property tax assessment freeze program. It raises the current thresholds from $55,000 for single-member households and $65,000 for multiple-member households to higher levels that automatically adjust each year. The new limits will increase annually based on the greater of either the consumer price index (CPI) or the federal Social Security cost-of-living adjustment, starting January 1, 2027. This change helps more homeowners qualify for the tax freeze as inflation rises, directly affecting those with household incomes near the new thresholds who own and occupy single-family homes.

Topics ✓ Budget & Taxes

failed · South Dakota · Senate Feb 24, 2026

SB 205: revise registration fees for drones and establish a fund to support drone aviation.

SB 205 revises drone registration fees in South Dakota, charging 1.5% of purchase price for agricultural drones and 2% for all other drones. The collected fees fund a new "drone aviation fund" administered by the Board of Technical Education to support drone training grants at state technical colleges. This bill directly affects drone owners (especially agricultural users) by changing their registration tax rates and creating a dedicated funding source for drone industry workforce development. The fund will receive all drone registration fees and interest, with expenditures requiring annual budget approval. The bill does not apply to small unmanned aircraft systems covered under federal regulations.

Topics ✓ Budget & Taxes ✓ Education ✓ Labor & Employment ✓ Technology

passed · South Dakota · Senate Feb 24, 2026

SB 118: deposit certain tax revenues into a homeowner tax reduction fund.

SB 118 creates a "homeowner tax reduction fund" in South Dakota's state treasury. Each year by January 31st, the treasurer must deposit either $100 million or 0.3% of revenues collected from specific property taxes (chapters 10-45, 10-46, 10-46E, 10-58, and § 32-5B-20) into this fund. The Department of Revenue will use these funds to provide property tax rebates for owner-occupied single-family homes, with money in the fund not allowed to transfer to the general fund and requiring annual budgeting through the general appropriation bill. The bill takes effect July 1, 2027.

Topics ✓ Budget & Taxes

failed · South Dakota · House Feb 24, 2026

HB 1113: establish a manufactured housing downpayment assistance program.

HB 1113 establishes a downpayment assistance program for manufactured or mobile home buyers in South Dakota. The program provides zero-interest loans of up to $10,000 per applicant from a $5 million revolving fund in the South Dakota housing infrastructure fund. Eligibility requires household income below 120% of the state median income and purchasing a home meeting federal safety standards and local zoning requirements for single-family residences. Repayments return to the fund to support new loans, with loans secured by a second lien due upon home sale or repayment of the primary mortgage. This directly assists low-to-moderate income residents seeking to purchase qualifying manufactured or mobile homes.

Topics ✓ Budget & Taxes ✓ Housing

in committee · South Dakota · Senate Feb 23, 2026

SB 225: apportion interest earnings from the unclaimed property trust fund to school districts.

SB 225 directs that 4% of the interest earnings from South Dakota's unclaimed property trust fund (without touching the principal) be distributed annually to school districts starting in fiscal year 2026. The funds will be apportioned to school districts based on their student enrollment, following the existing method used for other school funding. This adds a new source of revenue for school districts through the trust fund's interest, calculated using the fund's market value as of December 31 each year. The bill modifies existing statutes to implement this distribution, ensuring the funds are added to the general fund before being allocated to schools under current apportionment rules.

Topics ✓ Budget & Taxes ✓ Education

in committee · South Dakota · House Feb 23, 2026

HB 1251: create the community-based providers methodology supplement fund, create the target teacher salary supplement fund, and provide for the transfer of certain unobligated cash balances to the fund.

HB 1251 creates two new state funds: the "target teacher salary supplement fund" (administered by the Department of Education) and the "community-based providers methodology supplement fund" (administered by the Department of Human Services). The bill directs that unspent state funds from the previous fiscal year - after a portion is placed in a budget reserve - be split equally (30% each) into these two new funds. These funds will directly support increases in teacher salaries and provider rates for community-based services, as specified in existing law. The transfers occur automatically each year through the state's budget process, with expenditures requiring annual legislative approval.

Topics ✓ Budget & Taxes ✓ Education

passed · South Dakota · Senate Feb 23, 2026

SJR 507: proposing and submitting to the voters at the next general election, an amendment to state law to reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

SJR 507 proposes a constitutional amendment for voter approval that would reduce property taxes for owner-occupied homes while increasing business tax rates. Specifically, it would lower the maximum school district tax rate for single-family owner-occupied homes from $20.50 to $5.21 per $1,000 of taxable value, and raise the gross receipts tax rate for retailers and service businesses from 4.2% to 5%. This tax swap would directly affect homeowners through lower property taxes and businesses through higher sales tax rates on goods and services. The amendment requires voter approval at the next general election before taking effect.

Topics ✓ Budget & Taxes ✗ Education

passed · South Dakota · House Feb 23, 2026

HB 1322: revise a provision related to the transportation of an inmate upon discharge from a correctional facility.

HB 1322 revises a South Dakota law requiring correctional facilities to provide transportation for inmates when they are released (upon parole, sentence completion, or discharge). It mandates that facilities must provide transportation to one of three locations chosen by the inmate: the county where they lived before incarceration, the county where they were sentenced, or a location with equivalent mileage to the nearest of those two options. This change ensures inmates have a clear choice of destination while preventing facilities from routing them to unnecessarily distant locations. The bill does not alter existing requirements for providing inmates with clothing or a small cash allowance upon release. The policy directly affects all inmates leaving South Dakota correctional facilities.

Topics ✓ Criminal Justice

in committee · South Dakota · House Feb 23, 2026

HB 1259: require that the Department of Revenue provide for an online application for property tax relief programs.

HB 1259 requires South Dakota's Department of Revenue to offer online applications for several existing property tax relief programs, replacing the current paper-form requirement. It directly affects property owners applying for relief, including veterans with service-connected disabilities, surviving spouses of veterans, paraplegics, and residents eligible for tax freezes. The bill amends multiple statutes (§§ 10-4-24.14, 10-4-40, 10-4-41, 10-6A-4, 10-6B-9, 10-6C-3) to mandate that applications for these programs must be accessible via the Department's website. This change streamlines the application process by allowing online submissions instead of paper forms, while maintaining confidentiality for all submitted documents.

Topics ✓ Budget & Taxes ✓ Veterans

passed · South Dakota · Senate Feb 23, 2026

SB 216: limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

SB 216 limits annual property tax valuation increases for owner-occupied single-family homes in South Dakota to 3% per year, starting from a base value determined by either the 2020 market value or the sale price if purchased between 2020 and 2026. The bill directly affects homeowners by preventing sudden tax hikes due to rising market values, while allowing reassessment at fair market value after a sale or ownership change. Exceptions permit higher valuation increases for property improvements (up to 40% of current value) or changes in property use or expansion. This policy aims to stabilize homeowners' tax burdens without altering the existing tax system's structure.

Topics ✓ Budget & Taxes

in committee · South Dakota · Senate Feb 23, 2026

SB 229: require an election to approve the issuance of certain capital outlay certificates, lease-purchase contracts, or installment purchase contracts.

SB 229 requires South Dakota school districts to hold a voter election before issuing certain financing tools, including capital outlay certificates, lease-purchase contracts, or installment purchase contracts that would obligate the district for future payments exceeding $50,000 or 1.5% of the district’s taxable property valuation. The bill mandates a public hearing and referral to voters for approval, with the election requiring at least 60% "yes" votes. School boards must schedule these elections on specific dates (March, June, or November) and cover associated costs, unless combined with regular elections. This directly affects school districts managing large-scale facility or equipment financing.

Topics ✓ Budget & Taxes

Bill results