HB 1326 allocates state funding for the 2026-2027 fiscal year to cover ordinary expenses of the legislative, judicial, and executive branches, state institutions, public debt interest, and common schools. The bill establishes budget limits for various state agencies and departments, including the Governor's office, economic development initiatives, housing authority, and science and technology programs. Key provisions include reducing $20 million in federal grant authority for expiring Infrastructure Investment and Jobs Act broadband grants while maintaining funding for other economic development services. The legislation sets expenditure caps for each budget unit and allows agencies to use base funds to supplement line item changes, with conditions effective through June 30, 2027.
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.
HB 1244 repeals South Dakota’s special donations fund (created under § 13-66-3) and appropriates $500,000 from the general fund to the Department of Education. This grant supports the Jobs for America's Graduates-South Dakota program by providing financial assistance to school districts and accredited nonpublic schools implementing the initiative. The funds must match private donations or federal grants for program operations and cannot be added to an endowment. It directly affects schools participating in the JAG program and transfers existing funds from the repealed special donations fund into the general fund. The bill takes effect June 30, 2026.
HB 1134 appropriates $101 from South Dakota's general fund to support state economic development efforts. The bill authorizes the state to approve payments for these purposes and requires unspent funds to revert per standard state procedures by June 30, 2026. This is a simple fiscal appropriation with no new programs or direct impact on specific entities beyond state budget allocations.
This bill extends the deadline for unspent funds allocated to modernize South Dakota's state enterprise resource planning (ERP) systems. It amends existing law to delay the date when unused funds must revert to the general fund from June 30, 2029. The change directly affects state agencies managing the ERP modernization project, providing additional time to obligate or spend these funds. The key mechanism is modifying the reversion date in the 2023 appropriations law without altering the funding amount or project scope.
HB 1261 provides a property tax credit for homeowners of single-family residences in South Dakota, reducing their 2027 property tax bills by up to $500 or the full tax amount owed, whichever is lower. The credit applies automatically to tax bills sent by county treasurers for owner-occupied homes. To fund the credit, $120 million is reallocated from the housing infrastructure fund ($60 million) and the general fund/budget reserve ($60 million each), with the state treasurer transferring funds to cover the revenue loss. This policy directly affects single-family homeowners paying property taxes in 2027, while the funding mechanism ensures no new state revenue is required.
This bill appropriates $5.2 million from the state general fund to construct a trades center at Lake Area Technical College, providing new classrooms, labs, and student services for technical training programs. The college must secure matching funds from non-state sources (gifts, grants, etc.) equal to the state appropriation before the funds are released. The legislature declared an emergency to expedite the project, which will not use bonds for completion and requires approval of expenditures by the Department of Education and state auditor. The center directly affects students and staff at Lake Area Technical College by expanding hands-on training facilities.
This bill reduces property taxes for homeowners by lowering the mill levy rate on owner-occupied single-family homes from $5.21 to $20.51 per $1,000 of taxable value (with the exact figure clarified in the bill text). It simultaneously raises the state sales tax from 4.2% to 4.7% for 2026-2027 and to 5% after 2027, and expands the gross receipts tax to cover more services like dry cleaning, beauty shops, and rentals. The revenue from these tax increases is explicitly allocated to replace lost school district property tax revenue and fund pay raises for state and school employees. The bill ensures school districts maintain their total funding levels under the new system.
HB 1113 establishes a downpayment assistance program for manufactured or mobile home buyers in South Dakota. The program provides zero-interest loans of up to $10,000 per applicant from a $5 million revolving fund in the South Dakota housing infrastructure fund. Eligibility requires household income below 120% of the state median income and purchasing a home meeting federal safety standards and local zoning requirements for single-family residences. Repayments return to the fund to support new loans, with loans secured by a second lien due upon home sale or repayment of the primary mortgage. This directly assists low-to-moderate income residents seeking to purchase qualifying manufactured or mobile homes.
South Dakota's Senate Joint Resolution 503 applies to the U.S. Congress to call a convention of states for proposing constitutional amendments. The resolution specifically requests amendments to impose fiscal restraints on federal spending, further limit federal power and jurisdiction, and establish term limits for members of Congress and other federal officials. It includes conditions requiring the convention to be limited to these topics only and ensuring Congress performs only a ministerial role in convening it. This procedural resolution does not create new law but initiates a state-level step toward potential constitutional change under Article V of the U.S. Constitution.
