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.
SB 106 modifies South Dakota's funding for special education by increasing the state's annual allocation for unforeseen costs. Starting July 1, 2026, $4.5 million must be set aside for extraordinary expenses in special education programs, rising annually by an inflation index starting July 1, 2027, with a maximum cap of $5.5 million per year. Unspent funds will not revert to the general state budget, ensuring they remain available for future special education needs. The bill directly affects school districts providing special education services to children with disabilities across South Dakota.
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 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.
SB 21 adjusts South Dakota's retail sales tax refund program for low-income residents. It sets specific income thresholds ($17,215 for single-person households, $23,265 for larger households) and calculates refunds as $258 for eligible singles under the limit, up to $581 for larger households. The bill ensures these refunds remain available even if a recipient also receives property tax relief under separate programs. It directly affects elderly residents and people with disabilities who meet the income criteria under existing state law.
SB 239 modifies South Dakota's reinvestment payment program for businesses that complete qualifying projects. It requires project owners to submit detailed affidavits within six months of completion, including costs, tax payments, contractor lists, and project details, to qualify for rebates. The bill creates a dedicated fund to reimburse businesses for South Dakota sales, use, and contractors excise taxes paid on approved projects, while exempting gross receipts from these taxes for qualifying projects. It also sets clear deadlines for filings and specifies that costs beyond three years from construction (with possible one-year extension) are ineligible for rebates. This directly affects businesses completing projects under the program who seek tax rebates on eligible construction expenses.
SB 118 creates a "homeowner tax reduction fund" in South Dakota's state treasury. Each year by January 31st, the treasurer must deposit either $100 million or 0.3% of revenues collected from specific property taxes (chapters 10-45, 10-46, 10-46E, 10-58, and § 32-5B-20) into this fund. The Department of Revenue will use these funds to provide property tax rebates for owner-occupied single-family homes, with money in the fund not allowed to transfer to the general fund and requiring annual budgeting through the general appropriation bill. The bill takes effect July 1, 2027.
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.
