South Dakota's SB 96 allows counties to impose a 0.5% sales tax on taxable goods, digital products, and services (following state sales tax rules). All revenue from this county-level tax must go into a dedicated "property tax reduction fund." The fund is used to reduce property taxes on owner-occupied homes first, then agricultural and other land types, with all reductions applied equally across qualifying properties. Counties must adopt an ordinance to implement the tax and may hold a voter referendum on the proposal.
SB 69 appropriates $5 million from the general fund to the South Dakota Department of Public Safety for purchasing a new Highway Patrol airplane, related mission equipment, and installation. This bill directly affects the Highway Patrol division by funding equipment upgrades for aerial operations. The key mechanism is a specific budget allocation with a requirement that unspent funds revert per state procedures. The bill also declares an emergency to allow immediate implementation upon approval.
HB 1253 adjusts how property taxes are calculated for owner-occupied single-family homes and nonagricultural land by using a special averaging method. It requires county assessors to set each property's taxable value based on the "Olympic average" (removing the highest and lowest values) of its fair market value over the past eight years, or since a recent change in use or addition. This aims to stabilize tax bills by smoothing out annual value fluctuations. The bill specifically prevents this adjustment from increasing taxes on agricultural properties. It directly affects homeowners and nonagricultural property owners in South Dakota.
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.
SB 223 modifies South Dakota's process for school districts to refer excess tax levies to voter approval. It changes the petition signature requirement from a flat 50 voters to "at least five percent of the registered voters" in the school district. The bill also adjusts notice rules, waiving newspaper publication requirements if the district mails the resolution to all property taxpayers within 20 days. This affects school districts seeking voter input on tax increases and directly impacts local taxpayers who may petition to refer levy decisions.
HB 1204 creates the South Dakota school construction fund, administered by the Department of Education, to provide zero-interest loans to school districts for building or expanding school facilities. Loans cover up to 40% of a project's cost, with repayment over 20 years at 0% interest and no collateral required. Funds are allocated 30% to districts with 4,000+ students and 70% to other districts, beginning with a $1 transfer from the general fund (replenished by loan repayments). The bill also establishes reporting requirements for the Department of Education to a legislative committee.
Senate Bill 174 appropriates $5 million from the general fund to the South Dakota Department of Education to help cover school districts' operational costs, such as staffing and supplies. The funds will be distributed directly to school districts based on each district's 2026 fall enrollment relative to the state's total enrollment. Districts must use the funds for day-to-day operational expenses, not capital projects, and any unspent money by June 30, 2027, will revert to the state. This bill affects all public school districts in South Dakota through their 2026 enrollment figures.
This bill creates the "Building Opportunity Through Out-of-School Time Program" and establishes a dedicated state fund to support after-school and summer programs for students. The program fund, administered by the South Dakota Department of Education, provides grants to eligible providers (like school districts or qualified nonprofits) to cover staffing, materials, and transportation costs for evidence-based out-of-school time programming. Priority is given to programs serving under-served students, fostering community partnerships, and supplementing existing funding. The fund is supported by a new fee and state appropriations, with grants distributed annually based on applications submitted between August 1 and September 30.
HB 1147 appropriates $5 million from the general fund to the South Dakota Department of Agriculture for a single grant to a statewide food distribution organization. This organization must distribute food to all counties across South Dakota, with at least $1.5 million of the grant required to purchase food directly from local South Dakota farmers and producers. The bill mandates annual reports detailing grant spending, types/amounts of food purchased, and distribution to food pantries, to be submitted to the Department of Agriculture until the full grant is expended. The funding becomes effective June 30, 2026, and is intended to support food pantries statewide while prioritizing local agricultural purchases.
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.
