Budget & Taxes

passed · South Dakota · Senate Feb 24, 2026

SB 118: deposit certain tax revenues into a homeowner tax reduction fund.

SB 118 creates a "homeowner tax reduction fund" in South Dakota's state treasury. Each year by January 31st, the treasurer must deposit either $100 million or 0.3% of revenues collected from specific property taxes (chapters 10-45, 10-46, 10-46E, 10-58, and § 32-5B-20) into this fund. The Department of Revenue will use these funds to provide property tax rebates for owner-occupied single-family homes, with money in the fund not allowed to transfer to the general fund and requiring annual budgeting through the general appropriation bill. The bill takes effect July 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates fund for property tax rebates on owner-occupied homes, providing direct tax relief to homeowners per bill's explicit purpose.95% confidence

Sub-Topics Appropriations Property Tax State Budget

Track

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

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

Sub-Topics Revenue

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

Sub-Topics Appropriations

in committee · South Dakota · House Feb 23, 2026

HB 1168: provide a property tax credit for the payment of nonpublic school tuition.

HB 1168 creates a property tax credit for South Dakota homeowners who pay for qualifying K-12 education expenses for children aged 5-19. The credit covers tuition, school fees (including sports/fine arts), textbooks, tutoring, test fees, transportation, and educational technology. It limits the credit to $1,000 per year or 80% of the school district taxes owed. Homeowners must apply annually by June 1st with documentation from the school or alternative instruction provider.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax credit reducing burden for K-12 education expenses, offering tax relief to homeowners per bill's tax credit structure.95% confidence ✓ EducationSupports EducationProvides property tax credit for K-12 education expenses (tuition, fees, materials), increasing affordability and access for families per bill summary.95% confidence ✓ TechnologySupports TechnologyBill explicitly includes 'educational technology' as a qualifying expense, funding tech use in K-12 education through property tax credits.85% confidence

Sub-Topics Property Tax Tax Credits Higher Education K-12 Education School Choice

Track

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

Sub-Topics Workforce Development Emerging Technology

Track

signed · South Dakota · House Feb 25, 2026

HB 1137: make an appropriation for the design and construction of an athletic facility at the University of South Dakota and to declare an emergency.

HB 1137 allocates $40 million from state funds for the design and construction of a new athletic facility at the University of South Dakota. The facility will include an indoor track, practice areas, seating for 2,000 spectators, and supporting amenities like locker rooms and training spaces. The bill allows for cost adjustments up to 125% of the original estimate to account for inflation or regulatory changes, and declares an emergency to expedite the project. Unspent funds would revert per state procedures, and the project cannot create state debt or liens. The bill directly affects the University of South Dakota's athletic programs and facilities.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $40M state funds for public university facility construction, directly advancing budget appropriation for higher education infrastructure.95% confidence ✓ EducationSupports EducationAllocates $40M for university athletic facility infrastructure, directly funding higher education infrastructure per bill's appropriation for USD.90% confidence

Sub-Topics Appropriations Debt & Bonds Higher Education

in committee · South Dakota · House Feb 25, 2026

HB 1150: make an appropriation to increase the rate of payment for federally qualified health centers.

HB 1150 provides $8 million in total funding ($4 million from the general fund and $4 million in federal fund expenditure authority) to the South Dakota Department of Social Services. This funding increases payment rates for federally qualified health centers (FQHCs) in South Dakota, as defined by federal regulations (42 C.F.R. § 405.2401). The bill directly affects FQHCs by raising reimbursement rates for services they provide, improving their funding stability. The funding becomes effective June 30, 2026, and unspent amounts revert per standard state procedures.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $8M (including $4M general fund) to increase FQHC reimbursement rates, directly funding essential public health services per appropriation language.95% confidence ✓ HealthcareSupports HealthcareBill allocates $8M to increase FQHC reimbursement rates, directly strengthening healthcare funding and provider stability per bill summary and subjects.90% confidence

Sub-Topics Appropriations Government Spending State Budget

Track

signed · South Dakota · House Jan 29, 2026

HB 1044: make an appropriation to implement the rural health transformation program, and to declare an emergency.

This bill appropriates $500 million in federal funds to the South Dakota Department of Health to implement the rural health transformation program, authorized under the One Big Beautiful Bill Act (Pub. L. No. 119-21). It directly affects rural healthcare providers and facilities by funding program implementation. Key provisions include requiring the health secretary to approve vouchers for payments and mandating unspent funds by June 30, 2031, to revert per state law. The bill also declares an emergency to expedite its implementation upon passage.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $500M federal funds for rural health program, directly funding essential healthcare services through state budget mechanisms per bill's core purpose.95% confidence ✓ HealthcareSupports HealthcareBill appropriates $500M in federal funds to implement rural health transformation program, directly funding healthcare services for rural providers per health care subject and appropriation provisions.95% confidence

Sub-Topics Appropriations