Budget & Taxes

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.

SB 220 directs South Dakota's Department of Corrections to conduct a study evaluating juvenile correctional and residential facilities. The study must examine best practices, therapeutic housing models, vocational training combined with mental health services, and staff-to-youth ratios, including inspections at three facilities outside South Dakota. The bill appropriates $50,000 from the general fund to cover study costs and requires a written report to the Legislative Research Council by September 1, 2026. This is a procedural study bill with no direct policy changes or new requirements for facilities, solely aimed at gathering information for future decisions.

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 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.

HB 1203 (South Dakota) exempts active volunteer firefighters from certain motor vehicle license fees. It allows qualifying residents to apply for a fee exemption on one noncommercial vehicle (car, truck, or van) by submitting a fire department chief’s certification confirming their active volunteer status. The exemption must be renewed annually and does not cover excise tax on vehicle purchases or specialty plate costs. This directly affects South Dakota volunteer firefighters seeking to reduce vehicle registration expenses.