Budget & Taxes

passed · South Dakota · House Feb 20, 2026

HB 1317: eliminate a limit on the accumulation of the unused index factor for property taxation.

HB 1317 removes a 10% annual cap on how much South Dakota counties and municipalities can increase property taxes using accumulated unused index factors. Currently, local governments could only raise taxes based on these factors up to the prior three years' total or 10%, whichever was lower. The bill eliminates the 10% limit, allowing them to use all accumulated unused index factors from prior years without this restriction. This directly affects local governments' ability to adjust property tax revenue annually. The change modifies how county auditors calculate annual tax revenue limits under state law.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves 10% annual cap on property tax increases, enabling local governments to collect more revenue without restriction.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · House Feb 19, 2026

HB 1307: limit the annual increase in assessed value of each owner-occupied single-family dwelling.

HB 1307 limits annual increases in the assessed value of owner-occupied single-family homes in South Dakota to a maximum of 3% per year for property taxes payable in 2027-2031. This applies to all such properties within a county, with exceptions allowing higher increases for new construction or property reclassified as owner-occupied. Counties must still follow other assessment rules under § 10-6-121. The law takes effect July 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits annual property tax assessment increases to 3%, providing direct tax relief for homeowners and promoting fiscal responsibility in property taxation.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · House Feb 19, 2026

HB 1281: reduce the sales and use tax rates on food, to increase the rates for certain taxes, use taxes, and excise taxes, and to provide a new fund for school district capital outlay projects.

HB 1281 reduces sales and use tax rates on non-prepared food (like groceries) for consumers while increasing tax rates on other items, including certain excise taxes and use taxes. The bill establishes a new fund specifically for school district capital projects, such as building construction or major equipment purchases. It defines "food" to exclude prepared meals (e.g., restaurant takeout), alcohol, tobacco, and candy, ensuring the tax cut applies only to basic grocery items. The policy shifts tax burden from grocery shoppers to other taxable goods and services to finance school infrastructure.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new school capital fund while cutting grocery taxes (lower-income benefit) and raising other taxes - funds public education and targets tax relief to essentials.95% confidence ✓ EducationSupports EducationCreates new dedicated fund for school district capital projects (construction/equipment), explicitly directing tax revenue toward educational infrastructure funding.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · House Feb 17, 2026

HB 1289: modify requirements to create a tax increment financing district.

HB 1289 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which local governments use to fund development projects by capturing future tax growth in designated areas. The bill changes the requirement that a district's assessed value plus existing TIF districts cannot exceed 10.5% (previously 50%) of a political subdivision's total taxable property value. It also revises the criteria for designating a TIF district, requiring that either 25% of the district's area be blighted or 50% must stimulate economic development, and adds new consent rules: counties need municipal approval to create a TIF within city limits, and cities need county approval for TIFs spanning county areas. These changes directly affect counties and municipalities seeking to establish TIF districts for economic development projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases TIF district cap from 5% to 10.5%, expanding local government funding tools for development projects through tax increment financing.90% confidence ✗ HousingOpposes HousingReduces TIF district cap from 50% to 10.5% of taxable value, restricting funding mechanisms for housing development projects.85% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · House Feb 17, 2026

HB 1319: update provisions related to tax increment financing districts.

HB 1319 updates tax rules for new or renovated properties in designated areas. It allows county commissioners to use a special formula for up to five years after construction to partially or fully exclude new property value from taxes, but this applies only to specific qualifying properties like new industrial buildings ($30k+ value), affordable housing (meeting income rent limits), or commercial renovations ($30k+ value). The law explicitly excludes properties within tax increment financing districts from this tax relief. After five years, these properties must be taxed at standard rates like other properties. This directly affects developers and property owners building qualifying structures in eligible zones.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exclusions for affordable housing and qualifying commercial/industrial properties, reducing tax burden for development while promoting housing affordability.95% confidence ✓ HousingSupports HousingBill explicitly includes affordable housing as qualifying for tax exclusions, incentivizing development through tax benefits.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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signed · South Dakota · House Feb 17, 2026

HB 1058: require licensure for online pari-mutuel wagering pools for horse and dog races, and clarify the application of tax therefor.

HB 1058 requires online betting platforms offering pari-mutuel wagering on horse or dog races to obtain a specific license from South Dakota. It clarifies that both in-state operators (with a physical presence) and out-of-state operators must pay a tax of 1.5% on South Dakota contributions, while multi-jurisdictional hubs pay 0.25% (with portions going to racing and breeding funds). The bill specifies that tax revenue will fund the state, a special racing revolving fund, and a South Dakota-bred racing fund. This applies only to online wagering for authorized horse and dog races, updating existing tax and licensing rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes 1.5% and 0.25% tax rates on online wagering to fund state treasury and racing programs, creating new revenue streams for budget allocation.90% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

signed · South Dakota · House Feb 11, 2026

HB 1021: authorize the Department of Agriculture and Natural Resources to dismantle and demolish buildings on the South Dakota State Fairgrounds, to make an appropriation therefor, and to declare an emergency.

HB 1021 authorizes South Dakota's Department of Agriculture and Natural Resources to dismantle and demolish specific structures at the South Dakota State Fairgrounds in Huron, including barns at Livestock Avenue and Market Street and Quonset huts on Lincoln Avenue South. The bill appropriates $337,000 for this work and allows the department to accept additional funding from federal sources or donations. It declares an emergency to expedite the demolition, repair infrastructure, and clear the land, with all funds restricted to these specific projects. The measure directly affects the physical property of the fairgrounds, not broader public policy.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $337,000 for specific infrastructure demolition, directly allocating state budget funds for a designated project.90% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

signed · South Dakota · Senate Feb 11, 2026

SB 12: provide for a refund of property taxes in previous years for qualifying veterans and surviving spouses.

South Dakota's SB 12 allows qualifying veterans with certain disabilities (like loss of use of both lower extremities) or their unremarried surviving spouses to request refunds for property taxes paid in the previous four years if they missed the application deadline for an existing property tax exemption. The bill amends tax exemption rules to permit petitions to county commissioners for these refunds, which the commissioners may approve or deny at their discretion. It directly affects veterans and surviving spouses who previously paid taxes they might have qualified to avoid. The refund mechanism applies only to taxes paid in the four years prior to the petition, not future exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax refunds for veterans, reducing their tax burden - direct tax relief aligning with support indicators.95% confidence ✓ VeteransSupports VeteransEnables property tax refunds for qualifying veterans and surviving spouses who missed exemption deadlines, expanding financial benefits through retroactive relief.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

passed · South Dakota · House Feb 5, 2026

HB 1186: require the approval of the county for the creation of a tax increment financing district by a municipality.

HB 1186 requires South Dakota municipalities to obtain written approval from county commissioners before creating a tax increment financing district. This directly affects municipalities seeking to establish such districts and the counties where those districts would be located. The key provision mandates that county boards of commissioners must approve the district's creation through a formal resolution, either for the entire county or the portion within the county. The bill changes the process by adding county consent as a mandatory step, ensuring local county input before municipal tax district development begins.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRequires county approval for TIF districts, restricting municipal autonomy in fiscal management tools like tax increment financing.85% confidence ✗ HousingOpposes HousingRequires county approval for TIF districts, adding barriers to municipal housing development funding mechanisms that could delay or block projects.85% confidence | Rep's Stance ✗ Voted No ✓ Supports Budget & Taxes

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passed · South Dakota · House Feb 5, 2026

HB 1172: terminate certain school district excess tax levies.

HB 1172 terminates school district excess tax levies approved before July 1, 2002, under South Dakota law. It prohibits these levies from being imposed in 2026 or any subsequent year. The bill directly affects school districts that previously secured voter-approved excess tax levies prior to 2002, ending their ability to collect these specific taxes moving forward. This is a procedural change that modifies existing tax authority without creating new programs or funding.

Topics ✗ Budget & TaxesOpposes Budget & TaxesTerminates pre-2002 school tax levies, ending revenue streams for districts and reducing funding capacity without creating new programs.95% confidence ✗ EducationOpposes EducationTerminates pre-2002 school tax levies, eliminating a funding source without replacement, directly reducing school district revenue.95% confidence | Rep's Stance ✗ Voted No ✓ Supports Budget & Taxes

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