Budget & Taxes (Sales Tax)

signed · South Dakota · Senate Mar 30, 2026

SB 96: authorize the imposition of a county option gross receipts tax to reduce owner-occupied property taxes.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates county sales tax to fund property tax reductions, directly providing tax relief for homeowners through dedicated revenue allocation.95% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

passed · South Dakota · Senate Feb 18, 2026

SB 195: repeal the expiration of a reduction in certain gross receipts and use tax rates.

SB 195 repeals the scheduled expiration of reduced gross receipts and use tax rates established in 2023. It prevents these tax rate reductions from reverting to prior rates after June 30, 2027. The bill directly affects businesses in South Dakota that pay these specific taxes, ensuring the lower rates remain in effect without requiring new legislation. This is a procedural change to maintain existing tax policy, not a new tax rate adjustment.

Topics ✓ Budget & TaxesSupports Budget & TaxesMaintains reduced gross receipts/use tax rates for businesses, preventing rate increases and providing ongoing tax relief without new legislation.95% confidence

Sub-Topics Business Taxes Sales Tax

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signed · South Dakota · House Mar 30, 2026

HB 1245: authorize municipalities to establish a local funding mechanism for capital improvement projects.

HB 1245 allows South Dakota municipalities to create a local tax (up to 1% on taxable sales) to fund capital projects like infrastructure repairs, equipment purchases, or building renovations. To implement this, a municipality must form a Capital Improvement Board (with 1 elected official and 4 residents) to review proposals, secure board approval, and then hold a voter referendum requiring 60% support. All tax revenue must be placed in a special fund dedicated exclusively to approved capital projects, with the tax expiring after 60 months or once the targeted revenue amount is met. Municipalities cannot use this tax if they’ve imposed it within the previous 24 months.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes local sales tax (up to 1%) for capital projects, directly funding infrastructure through dedicated fiscal mechanism with voter approval.95% confidence ✓ TransportationSupports TransportationAuthorizes local tax for infrastructure repairs and capital projects, directly funding transportation infrastructure improvements.95% confidence

Sub-Topics Revenue Sales Tax

signed · South Dakota · Senate Mar 4, 2026

SB 21: modify tax refunds for elderly persons and persons with a disability.

SB 21 adjusts South Dakota's retail sales tax refund program for low-income residents. It sets specific income thresholds ($17,215 for single-person households, $23,265 for larger households) and calculates refunds as $258 for eligible singles under the limit, up to $581 for larger households. The bill ensures these refunds remain available even if a recipient also receives property tax relief under separate programs. It directly affects elderly residents and people with disabilities who meet the income criteria under existing state law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax refunds to low-income elderly/disabled residents under retail sales tax program, increasing tax relief for vulnerable groups.95% confidence

Sub-Topics Property Tax Sales Tax

died · South Dakota · House Feb 2, 2026

HB 1191: provide a sales tax holiday on firearms.

HB 1191 exempts firearm sales from South Dakota's sales tax on or after December 1st each year. The bill directly affects firearm buyers and sellers within South Dakota, applying to all firearms defined under state law (§ 22-1-2). Key provision: it adds a new tax exemption to Chapter 10-45, removing the sales tax obligation for qualifying firearm transactions during this annual period. This is a straightforward tax policy change with no additional requirements or administrative mechanisms.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for firearms, reducing state sales tax revenue and weakening fiscal management by eliminating a revenue stream.95% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · South Dakota · Senate Feb 11, 2026

SB 141: exempt certain sales at farmers' markets from sales tax.

SB 141 exempts sales of fresh seasonal fruits, vegetables, meat, eggs, dairy, baked goods, flowers, and artisanal products directly to consumers at qualifying farmers' markets from South Dakota's sales tax. It applies specifically to recurring public markets where multiple independent farmers and producers sell agricultural goods directly to shoppers. The bill removes the tax burden on these transactions, benefiting both small-scale farmers who sell at markets and consumers purchasing locally grown or made products. This policy change directly affects farmers' market operators and shoppers at these venues within South Dakota.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts farmers' market sales from sales tax, providing tax relief to consumers and small farmers, aligning with tax relief indicators for lower-income groups.95% confidence

Sub-Topics Procurement Sales Tax

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died · South Dakota · House Feb 4, 2026

HB 1128: exempt certain nonresident military personnel from payment of motor vehicle excise tax.

HB 1128 exempts vehicles owned by South Dakota residents who previously paid motor vehicle excise tax in the state and later moved away. It specifically applies to individuals who return to South Dakota and can prove prior tax payment through department records or other acceptable documentation. The bill amends South Dakota law to add this scenario as a new exemption category under motor vehicle tax rules. It does not apply to active-duty military personnel or nonresidents generally, as the bill focuses solely on returning former residents with documented prior tax payments. The change simplifies tax obligations for this specific group when they repurchase or return to owning a vehicle in South Dakota.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts returning military residents from motor vehicle tax, providing targeted tax relief and reducing tax burden per bill's explicit exemption language.85% confidence

Sub-Topics Sales Tax

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passed · South Dakota · House Feb 4, 2026

HB 1005: provide a sales and use tax exemption for goods and services related to data center operations.

HB 1005 exempts sales and use taxes on data center equipment and software for businesses operating qualified data centers in South Dakota. It specifically covers servers, cooling systems, power infrastructure, security systems, and related technology used in facilities meeting strict criteria (e.g., built between 2026-2036, meeting fire safety standards). Qualified businesses must verify eligibility with the Department of Revenue and maintain compliance with electric utility agreements and water usage requirements. The tax exemption lasts 50 years from the facility's construction permit date. This directly affects data center operators seeking to reduce operational costs in South Dakota.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill grants tax exemption for data centers, reducing state tax revenue by excluding sales/use taxes on qualifying equipment and services.92% confidence ✓ TechnologySupports TechnologyTax exemption for data center equipment incentivizes infrastructure investment, directly advancing technology sector growth through financial support for critical tech infrastructure.95% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · South Dakota · House Feb 10, 2026

HB 1203: exempt a volunteer firefighter from certain motor vehicle registration fees.

HB 1203 (South Dakota) exempts active volunteer firefighters from certain motor vehicle license fees. It allows qualifying residents to apply for a fee exemption on one noncommercial vehicle (car, truck, or van) by submitting a fire department chief’s certification confirming their active volunteer status. The exemption must be renewed annually and does not cover excise tax on vehicle purchases or specialty plate costs. This directly affects South Dakota volunteer firefighters seeking to reduce vehicle registration expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts volunteer firefighters from motor vehicle registration fees, providing tax relief for lower-income public safety workers.90% confidence

Sub-Topics Sales Tax

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