South Dakota's SB 96 allows counties to impose a 0.5% sales tax on taxable goods, digital products, and services (following state sales tax rules). All revenue from this county-level tax must go into a dedicated "property tax reduction fund." The fund is used to reduce property taxes on owner-occupied homes first, then agricultural and other land types, with all reductions applied equally across qualifying properties. Counties must adopt an ordinance to implement the tax and may hold a voter referendum on the proposal.
HB 1253 adjusts how property taxes are calculated for owner-occupied single-family homes and nonagricultural land by using a special averaging method. It requires county assessors to set each property's taxable value based on the "Olympic average" (removing the highest and lowest values) of its fair market value over the past eight years, or since a recent change in use or addition. This aims to stabilize tax bills by smoothing out annual value fluctuations. The bill specifically prevents this adjustment from increasing taxes on agricultural properties. It directly affects homeowners and nonagricultural property owners in South Dakota.
HB 1241 increases the property tax exemption amount for disabled veterans and surviving spouses in South Dakota. It amends existing law (§ 10-4-40 for veterans and § 10-4-41 for surviving spouses) to raise the value of a primary residence exempt from property taxes. Currently set at $225,000, this exemption applies to owner-occupied homes where the veteran is permanently and totally disabled from service-connected injuries, or to surviving spouses of such veterans. To qualify, applicants must submit a confidential form to the Department of Revenue and maintain occupancy; the exemption ends if they sell the home, stop living there, or remarry (for surviving spouses).
SB 220 directs South Dakota's Department of Corrections to conduct a study evaluating juvenile correctional and residential facilities. The study must examine best practices, therapeutic housing models, vocational training combined with mental health services, and staff-to-youth ratios, including inspections at three facilities outside South Dakota. The bill appropriates $50,000 from the general fund to cover study costs and requires a written report to the Legislative Research Council by September 1, 2026. This is a procedural study bill with no direct policy changes or new requirements for facilities, solely aimed at gathering information for future decisions.
SB 223 modifies South Dakota's process for school districts to refer excess tax levies to voter approval. It changes the petition signature requirement from a flat 50 voters to "at least five percent of the registered voters" in the school district. The bill also adjusts notice rules, waiving newspaper publication requirements if the district mails the resolution to all property taxpayers within 20 days. This affects school districts seeking voter input on tax increases and directly impacts local taxpayers who may petition to refer levy decisions.
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.
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.
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.
SB 199 creates a Property Tax Relief Fund in the state treasury to help reduce property taxes for homeowners and businesses. The fund is funded by transferring 25% of the annual increase in the state's general fund revenue each August into the account, starting in 2026. Local governments (political subdivisions) can use these funds to lower property tax levies on real property within their jurisdictions. The Department of Revenue administers the fund, and deposits automatically adjust based on state revenue changes each year. This provides a structured, ongoing mechanism for property tax relief tied to state budget growth.
This bill increases the property tax exemption amount for disabled veterans and surviving spouses in South Dakota. Currently, $350,000 of a home's value is exempt from property taxes under the program; the bill raises this amount but does not specify the new figure in the provided text. It directly affects veterans rated permanently and totally disabled from service-connected disabilities, as well as surviving spouses of such veterans. The change would lower property tax bills for eligible homeowners without altering application requirements or eligibility criteria.
