Budget & Taxes (Property Tax)

passed · South Dakota · Senate Feb 11, 2026

SB 161: repeal an exemption for certain health care facilities.

SB 161 repeals a tax exemption for certain nonprofit health care facilities in South Dakota, ending their current property tax exemption. This affects facilities previously qualifying under repealed sections 10-4-9.3 and 10-4-35, including licensed hospitals, clinics, mental health centers, and wellness centers meeting specific criteria (like 501(c)(3) status and non-profit operation). The bill removes the exemption, requiring these facilities to pay property taxes on their entire property - previously only the portion not used for health care services was taxable. The change directly impacts nonprofit health care organizations that relied on this exemption for tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax exemption for health care facilities, increasing state property tax revenue. Closes a tax loophole, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Property Tax Tax Incentives

Track

passed · South Dakota · Senate Feb 23, 2026

SJR 505: proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting the assessed value of real property and limiting real property taxes.

This bill proposes a constitutional amendment that would limit property taxes in South Dakota to no more than 1% of a property's assessed value. It also caps annual increases to assessed property values at 2% (starting with 2027 valuations) and allows adjustments for ownership changes, renovations, or damage. The amendment would affect all real property owners in South Dakota by restricting how local governments can levy taxes on their land and buildings. Voters would need to approve this change at the next general election for it to take effect.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps property taxes at 1% of assessed value and limits annual valuation increases to 2%, directly restricting tax rates and local government revenue under constitutional amendment.95% confidence

Sub-Topics Property Tax

Track

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

Sub-Topics Property Tax Tax Incentives Veteran Benefits Veteran Education Veteran Housing

signed · South Dakota · Senate Mar 3, 2026

SB 20: make an appropriation for tax refunds for elderly persons and persons with a disability, and to declare an emergency.

This bill appropriates $425,000 from South Dakota's general fund to the Department of Revenue to provide tax refunds for real property tax and sales tax to elderly residents and individuals with disabilities. The refunds are based on existing laws (chapters 10-18A and 10-45A), with up to $20,000 allowed for administrative costs. The bill declares an emergency to allow immediate implementation and requires unspent funds by June 30, 2027, to revert to the general fund. It directly affects eligible elderly and disabled taxpayers by providing financial relief on specific taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax refunds for elderly/disabled, reducing their tax burden per existing laws, aligning with tax relief indicators for vulnerable groups.95% confidence

Sub-Topics Appropriations Property Tax State Budget

passed · South Dakota · Senate Feb 20, 2026

SJR 506: proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, resetting, then limiting property taxes to a flat rate, until adjusted when sold.

SJR 506 proposes a constitutional amendment to limit South Dakota property taxes to a flat rate based on a property's most recent sale price. For 2028 taxes, the maximum cannot exceed the lower of the 2027 tax amount or the higher of the 2020 tax amount or 1% (for year-round residents) or 2% (for non-residents) of the most recent sale price. For subsequent years, the tax cap resets annually to the higher of the previous year's tax or the applicable percentage of the most recent sale price if ownership changed. This amendment would directly affect all South Dakota property owners, with non-resident owners facing a higher 2% rate versus 1% for residents. If approved by voters, it would replace current property tax calculation methods.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes strict annual caps on property tax rates (1-2% of sale price), directly limiting tax increases and government revenue potential from property taxes.95% confidence

Sub-Topics Property Tax

Track

signed · South Dakota · House Mar 30, 2026

HB 1193: modify the provisions for a refund of taxes to disabled veterans and surviving spouses under certain property tax relief programs.

HB 1193 requires South Dakota counties to refund property taxes to disabled veterans and surviving spouses who qualify for tax exemptions under §§ 10-4-40 and 10-4-41 but missed application deadlines. The bill amends § 10-18-1 to explicitly allow refunds for the difference in taxes paid over the previous four years when eligibility requirements are otherwise met. This applies to veterans rated permanently and totally disabled from service-connected disabilities and their surviving spouses (including those receiving VA dependency compensation). The refund mechanism ensures counties must recalculate taxes and return overpayments when the only barrier was a missed deadline. It does not change eligibility criteria but adds a procedural remedy for administrative errors.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax refunds to disabled veterans under property tax exemptions, offering relief to a vulnerable group and aligning with tax relief indicators for lower-income individuals.95% confidence ✓ VeteransSupports VeteransRequires tax refunds for disabled veterans and surviving spouses who missed deadlines, expanding access to existing property tax benefits under veterans' exemptions.95% confidence

Sub-Topics Property Tax

passed · South Dakota · House Jan 22, 2026

HB 1036: limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural property.

HB 1036 would limit annual property tax increases for South Dakota homeowners of single-family residences and nonagricultural property to a maximum of 3% per year. This affects most residential homeowners and nonfarm property owners by capping how much their assessed tax value can rise annually, unless specific exceptions apply. The cap does not apply if ownership changes, the property's use changes, or major additions (increasing value over 40%) are made, but minor renovations or expansions under 40% value increase are excluded. This policy aims to provide stability in property tax assessments for qualifying properties.

Topics ✓ Budget & TaxesSupports Budget & TaxesCaps annual property tax increases at 3% for homeowners, providing direct tax relief and aligning with support indicators for middle-income tax relief.95% confidence ✓ HousingSupports HousingCapping property tax increases at 3% reduces costs for homeowners, directly supporting housing affordability for owner-occupied properties.85% confidence

Sub-Topics Property Tax Homeownership Property Taxes

Track

passed both · South Dakota · House Mar 9, 2026

HB 1241: modify the requirements for public notice of a hearing prior to a vote to impose an excess tax levy, and to modify requirements to refer an excess tax levy of a school district to a vote.

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).

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled veterans, providing direct tax relief to qualifying individuals under state tax policy.90% confidence ✓ VeteransSupports VeteransIncreases property tax exemption amount for disabled veterans and surviving spouses, expanding financial relief under veterans' benefits.95% confidence

Sub-Topics Property Tax Tax Incentives

Track

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

Sub-Topics Property Tax Revenue

Track

passed both · South Dakota · Senate Mar 4, 2026

SB 125: establish the homeowner tax reduction fund.

SB 125 creates a state fund to provide property tax rebates for owner-occupied single-family homes in South Dakota. The Department of Revenue will calculate annual rebates using a formula: multiplying $2 by the number of eligible homeowners, subtracting that from the fund's total, and dividing by the number of homeowners. Rebates are capped at either this calculated amount or the portion of property taxes exceeding $250 per home. The fund cannot be diverted to the general state budget, and any unused funds must stay in the fund or cover administrative costs. This directly affects homeowners who live in single-family residences and pay property taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax rebates to homeowners, reducing tax burden for eligible residents through a dedicated fund with non-divertible funding.95% confidence

Sub-Topics Property Tax State Budget

Track