South Dakota Bills | MyRepTracker

passed · South Dakota · Senate Feb 20, 2026

SB 243: impose a transaction tax and dedicate revenues collected to supplant certain property taxes, and to provide a penalty therefor.

SB 243 imposes a new transaction tax on retail purchases: $1.50 for items $15 or more, and 10% for items under $15. Revenues from this tax fund a "property tax replacement fund" to reduce property tax levies for specific property types. The fund prioritizes eliminating taxes on owner-occupied homes first, then agricultural property, and finally nonagricultural property - reducing each category equally until funds run out. Property owners in South Dakota would see lower tax bills for these categories, while retailers must collect and remit the tax, with penalties for non-payment (misdemeanor for late payment, felony for false returns).

Topics ✓ Budget & Taxes

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 & Taxes

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 & Taxes

passed · South Dakota · House Feb 20, 2026

HB 1317: eliminate a limit on the accumulation of the unused index factor for property taxation.

HB 1317 removes a 10% annual cap on how much South Dakota counties and municipalities can increase property taxes using accumulated unused index factors. Currently, local governments could only raise taxes based on these factors up to the prior three years' total or 10%, whichever was lower. The bill eliminates the 10% limit, allowing them to use all accumulated unused index factors from prior years without this restriction. This directly affects local governments' ability to adjust property tax revenue annually. The change modifies how county auditors calculate annual tax revenue limits under state law.

Topics ✓ Budget & Taxes

passed · South Dakota · Senate Feb 20, 2026

SB 218: provide for the establishment of charter schools.

SB 218 establishes a legal framework for charter schools in South Dakota. It defines charter schools as public schools operating under contracts with school districts or the state education department, granting them exemptions from most state education laws while requiring compliance with civil rights, health/safety rules, and standardized testing. The bill mandates annual performance reporting to the state, outlines application requirements for nonprofit organizers (including community support and financial plans), and specifies that charter schools must serve grades K-12 nonsectarianly without religious instruction. This directly affects school districts (as authorizing entities), nonprofit organizers seeking to open charter schools, and students enrolled in these schools.

Topics ✓ Education

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 & Taxes

passed · South Dakota · Senate Feb 20, 2026

SB 145: revise the limitations on a municipality's power to take actions for the promotion of health or the suppression of disease.

This bill (SB 145) amends South Dakota law to clarify and expand municipalities' authority to take actions promoting health or suppressing disease. It removes specific restrictions that previously limited municipal power, such as prohibitions against actions that might interfere with religious freedom, free speech, assembly, or Second Amendment rights. Municipalities can now enact health-related ordinances or resolutions without needing to avoid these specific constitutional considerations. The change directly affects all South Dakota cities and towns when creating local health or disease prevention policies.

Topics ✓ Healthcare

passed · South Dakota · Senate Feb 20, 2026

SB 191: remove the authorization to issue grants as part of a tax increment financing district.

SB 191 removes the ability for local governments (counties or municipalities) to issue grants as part of a tax increment financing district. The bill amends South Dakota law by deleting the provision that allowed "payments and grants" to be included in "project costs" for these districts. This change specifically eliminates the authorization for governing bodies to use district funds for grants, restricting allowable uses to direct project costs like construction, bonds, or professional services. The bill affects how local governments can fund redevelopment projects within designated tax increment districts.

Topics ✗ Budget & Taxes ✗ Housing

passed · South Dakota · Senate Feb 20, 2026

SB 192: modify the blight requirements for purposes of creating a tax increment financing district.

SB 192 corrects a typo in South Dakota's law governing tax increment financing districts by clarifying that at least 50% of a proposed district's area must qualify as blighted or meet economic development criteria. This change directly affects counties and municipalities seeking to create such districts for redevelopment projects. The bill does not alter the definition of "blighted area" (which includes deteriorated structures, poor layouts, or unsafe conditions) or other requirements like municipal consent. It ensures the legal standard is clear and consistent for local governments pursuing economic revitalization through tax increment financing.

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 & Taxes

passed · South Dakota · House Feb 20, 2026

HB 1236: establish civil liability for furnishing alcohol to an obviously intoxicated person.

HB 1236 would amend South Dakota law to remove civil liability immunity for licensees (like bars and restaurants) who serve alcohol to someone who is obviously intoxicated. Currently, licensees cannot be sued for injuries or deaths caused by such violations, but this bill would allow injured parties or their estates to pursue civil claims. The key change directly affects licensed alcohol establishments and their employees who serve patrons showing clear signs of intoxication. This shifts the legal standard by making licensees financially responsible for harm resulting from their violation of the existing prohibition against serving intoxicated individuals.

passed · South Dakota · House Feb 20, 2026

HB 1224: protect persons from discrimination by financial institutions.

HB 1224 prohibits South Dakota financial institutions from denying or restricting banking services (like checking accounts, loans, or credit cards) based on a person's religious exercise, free speech, or lawful economic activity. It requires institutions to provide a specific, written explanation within 30 days if they take an adverse action, detailing whether protected activities influenced the decision - replacing vague reasons like "internal policies." The bill bans agreements to discriminate and makes violations a deceptive trade practice under existing state law. It applies to large institutions processing over $100 billion in annual transactions, with exceptions for legitimate business reasons like account defaults or legal compliance.