SB 229 requires South Dakota school districts to hold a voter election before issuing certain financing tools, including capital outlay certificates, lease-purchase contracts, or installment purchase contracts that would obligate the district for future payments exceeding $50,000 or 1.5% of the district’s taxable property valuation. The bill mandates a public hearing and referral to voters for approval, with the election requiring at least 60% "yes" votes. School boards must schedule these elections on specific dates (March, June, or November) and cover associated costs, unless combined with regular elections. This directly affects school districts managing large-scale facility or equipment financing.
This bill proposes a constitutional amendment that would limit property taxes in South Dakota to no more than 1% of a property's assessed value. It also caps annual increases to assessed property values at 2% (starting with 2027 valuations) and allows adjustments for ownership changes, renovations, or damage. The amendment would affect all real property owners in South Dakota by restricting how local governments can levy taxes on their land and buildings. Voters would need to approve this change at the next general election for it to take effect.
SB 199 creates a Property Tax Relief Fund in the state treasury to help reduce property taxes for homeowners and businesses. The fund is funded by transferring 25% of the annual increase in the state's general fund revenue each August into the account, starting in 2026. Local governments (political subdivisions) can use these funds to lower property tax levies on real property within their jurisdictions. The Department of Revenue administers the fund, and deposits automatically adjust based on state revenue changes each year. This provides a structured, ongoing mechanism for property tax relief tied to state budget growth.
This bill increases the property tax exemption amount for disabled veterans and surviving spouses in South Dakota. Currently, $350,000 of a home's value is exempt from property taxes under the program; the bill raises this amount but does not specify the new figure in the provided text. It directly affects veterans rated permanently and totally disabled from service-connected disabilities, as well as surviving spouses of such veterans. The change would lower property tax bills for eligible homeowners without altering application requirements or eligibility criteria.
SB 235 prevents utilities from raising residential electricity rates to cover data center costs, requiring data centers to pay all associated infrastructure expenses directly. It mandates data center operators to report water usage to local providers and the state board, with public disclosure of semi-annual water consumption data. The bill preserves local government authority to regulate data center construction and operations, and exempts data center purchasing from certain taxes. These provisions directly affect residents (by shielding them from cost shifts), data center operators (requiring direct payment and reporting), and local governments (retaining regulatory power).
This bill exempts sales tax on enterprise information technology equipment and computer software purchased for use in South Dakota's qualified data centers. It directly affects data center owners, operators, or tenants (referred to as "qualified businesses") who meet specific criteria, such as having facilities classified as real property subject to taxation and equipped with fire suppression systems. The key mechanism requires businesses to submit documentation to the Department of Revenue to verify eligibility and maintain annual certification. To retain the exemption, businesses must also ensure electric service agreements avoid shifting costs to other customers and confirm water usage compatibility with local providers. The tax exemption applies to equipment like servers, cooling systems, power infrastructure, and security systems used exclusively in these facilities.
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.
SB 195 repeals the scheduled expiration of reduced gross receipts and use tax rates established in 2023. It prevents these tax rate reductions from reverting to prior rates after June 30, 2027. The bill directly affects businesses in South Dakota that pay these specific taxes, ensuring the lower rates remain in effect without requiring new legislation. This is a procedural change to maintain existing tax policy, not a new tax rate adjustment.
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.
Senate Bill 97 adjusts property tax revenue limits for South Dakota taxing districts and school districts. For school districts, it changes the annual revenue increase cap from "lesser of 3% or index factor" to a flat 3% over the prior year's revenue, effective 2021. For general taxing districts, it adds a specific 3.5% cap on revenue increases above normal limits for taxes payable in 2027-2031. The bill also clarifies that property improvements to owner-occupied homes increasing value by 40% or less do not count toward the revenue limit. These changes directly affect local governments and school districts managing property tax revenue.
