Budget & Taxes

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.

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 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.

HB 1088 removes a requirement that South Dakota counties must remit funds to municipalities equal to the road levy amounts distributed to those municipalities for calendar years 1984, 1985, and 1986. This specifically targets a provision in existing law that mandated counties pay municipalities a share of road tax revenue from those three years. The bill repeals Section 10-12-32.1, which previously established that municipalities incorporated after January 1, 1984, were entitled to 25% of county road funds for those historical years. This change eliminates a longstanding financial obligation between counties and municipalities for a specific historical period.