SB 126 South Dakota Senate · 2026 Regular Session

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.

Bill status in committee 2 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Failed

Feb 2026

Governor

Introduced Jan 26, 2026 Last action Feb 20, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Senate Taxation Engrossed · 4 edits · Feb 11, 2026

MODERATE

This bill expands property tax relief for surviving spouses of disabled veterans in South Dakota. Previously, only permanently disabled veterans received a $300,000 property tax exemption on their owner-occupied homes. Now, surviving spouses of such veterans can also qualify for this exemption under specific conditions.

Scope change

The bill extends property tax relief eligibility from disabled veterans only to include surviving spouses of disabled veterans and surviving spouses of veterans who died from service-connected disabilities.

ELIGIBILITY

Added eligibility for surviving spouses of veterans who were permanently and totally disabled from service-connected disabilities to receive the $300,000 property tax exemption.

Added eligibility for surviving spouses of veterans who died from service-connected disabilities and receive dependency and indemnity compensation from the VA.

REQUIREMENT

Modified exemption termination conditions to include remarriage for surviving spouses, which was not previously applicable to veterans.

Added requirement that surviving spouses must apply for the exemption on forms prescribed by the secretary of revenue, with confidential application documents.

Floor votes · Senate Feb 20, 2026

How they voted

14–20

Failed · 1 other

Total votes 35

Feb 20, 2026

D Democratic3

3 Yea

100% Yea

R Republican32

11 Yea 20 Nay 1

62% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 20, 2026

Upper · Passed

Senate Do Pass Amended , Passed, YEAS 14, NAYS 20 S.J. 342

upper

Feb 20, 2026

Vote failed

Senate Vote: fail (14-20-1)

senate

Feb 19, 2026

Committee

Referred to , Passed, Senate S.J. 309

upper

Feb 17, 2026

Committee

Referred to , Passed, Senate Committee on Appropriations S.J. 269

upper

Feb 11, 2026

Upper · Passed

Taxation Do Pass Amended , Passed, YEAS 5, NAYS 0 S.J. 13

upper

Feb 11, 2026

Introduced

Taxation Motion to amend , Passed, S.J. 13 Amendment 126A

upper

Jan 26, 2026

Introduced

First read in Senate and referred to Senate Taxation S.J. 112

upper

9 primary · 0 co-sponsors