Budget & Taxes

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 & TaxesSupports Budget & TaxesExpands property tax freeze eligibility for lower/middle-income homeowners by raising income thresholds annually with inflation, providing direct tax relief.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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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 & TaxesSupports Budget & TaxesRevises drone registration fees (tax) to fund drone training grants, directly allocating tax revenue to support workforce development programs.95% confidence ✓ EducationSupports EducationDirectly funds drone training grants at state technical colleges via new aviation fund, supporting higher education workforce development.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates a dedicated fund for drone training grants at technical colleges, directly advancing workforce development in a growing industry and supporting employment standards through skill-building.80% confidence ✓ TechnologySupports TechnologyFunds drone training grants for industry workforce development, directly advancing drone technology sector through dedicated fee-based funding.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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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 & TaxesSupports Budget & TaxesLimits annual property tax valuation increases for homeowners, preventing sudden tax hikes and providing tax relief, aligning with support indicators.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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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 & TaxesSupports Budget & TaxesRequires voter approval for school district debt exceeding thresholds, promoting fiscal responsibility in budget management per subject 'Property Tax' and 'School Districts'.90% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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failed · South Dakota · Senate Feb 23, 2026

SB 199: establish a new fund to provide property tax relief.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates Property Tax Relief Fund to lower taxes for homeowners/businesses, directly supporting tax relief through dedicated funding mechanism.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · Senate Feb 20, 2026

SB 212: establish the homeowner tax reduction fund.

SB 212 establishes a new "homeowner tax reduction fund" in the South Dakota state treasury, administered by the Department of Revenue. The fund provides property tax rebates specifically for owner-occupied single-family homes. It is funded through dedicated state revenue (as specified in the bill's text), with interest earning on the fund remaining within it. The fund cannot be transferred to the general state budget, ensuring its dedicated use for homeowner rebates.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax rebates for homeowners via dedicated fund, reducing tax burden on owner-occupied homes95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · Senate Feb 20, 2026

SB 230: make an exception for improvement districts from a limit on revenue growth for purposes of property taxation.

SB 230 creates an exception for "improvement districts" (defined under South Dakota Chapter 7-25A) to the standard 3% annual limit on property tax revenue growth. This allows these districts to collect additional property tax revenue when property values increase due to improvements, annexations, or boundary changes - exceeding the usual cap. The exception specifically applies to revenue generated from property taxes tied to those improvements, not general district taxes. It directly affects improvement districts and property owners within them by enabling higher tax collections during development phases. The bill amends Section 10-13-35 of South Dakota law to clarify this exception for property tax revenue calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes 3% property tax revenue cap for improvement districts tied to actual property value increases, enabling targeted revenue collection for district improvements within fiscal management framework.90% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · Senate Feb 20, 2026

SB 109: modify requirements to create a tax increment financing district.

SB 109 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which are areas where increased property tax revenue from development is used to fund improvements. The bill requires that at least 50% of a district's area must be designated as "blighted" (meeting specific criteria like deteriorated structures or unsafe conditions) or serve economic development purposes. It also adds new consent requirements: counties need municipal approval to create districts within city limits, and municipalities need county approval for districts in unincorporated areas. The bill clarifies the definition of "blighted area" to include factors like substandard structures, inadequate infrastructure, or safety hazards. These changes directly affect local governments (municipalities and counties) seeking to establish TIF districts for redevelopment projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies TIF district rules to require 50% blighted areas, promoting responsible fiscal management of tax increment funds for development.92% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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in committee · South Dakota · Senate Feb 20, 2026

SB 126: increase the amount of value exempt from property taxes under a tax relief program for disabled veterans and surviving spouses.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled veterans, providing direct tax relief to eligible homeowners, aligning with tax relief indicators for lower-income groups.95% confidence ✓ VeteransSupports VeteransIncreases property tax exemption for disabled veterans and surviving spouses, directly expanding tax benefits and reducing their financial burden.90% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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passed · South Dakota · Senate Feb 19, 2026

SB 226: increase a limit on video lottery gaming, and to deposit moneys into a new fund.

SB 226 increases the payout limit for video lottery machines (allowing more than $1,000 per bet) and redirects excess revenue from video lottery gaming into a new fund. Specifically, after $165 million annually is deposited into the video lottery operating fund, any additional state share of video lottery revenue must go to the "residential tax reduction fund." This fund, administered by the Department of Revenue, provides property tax relief for owner-occupied single-family homes. The bill changes how video lottery revenue is distributed but does not alter the current 50% state share of net machine income.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects excess video lottery revenue to a property tax relief fund for homeowners, directly reducing taxes on owner-occupied homes per bill's explicit language.95% confidence | Rep's Stance ✓ Voted Yes ✓ Supports Budget & Taxes

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