SB 225 directs that 4% of the interest earnings from South Dakota's unclaimed property trust fund (without touching the principal) be distributed annually to school districts starting in fiscal year 2026. The funds will be apportioned to school districts based on their student enrollment, following the existing method used for other school funding. This adds a new source of revenue for school districts through the trust fund's interest, calculated using the fund's market value as of December 31 each year. The bill modifies existing statutes to implement this distribution, ensuring the funds are added to the general fund before being allocated to schools under current apportionment rules.
HB 1319 updates tax rules for new or renovated properties in designated areas. It allows county commissioners to use a special formula for up to five years after construction to partially or fully exclude new property value from taxes, but this applies only to specific qualifying properties like new industrial buildings ($30k+ value), affordable housing (meeting income rent limits), or commercial renovations ($30k+ value). The law explicitly excludes properties within tax increment financing districts from this tax relief. After five years, these properties must be taxed at standard rates like other properties. This directly affects developers and property owners building qualifying structures in eligible zones.
SB 217 appropriates $750,000 from South Dakota's general fund to create a fire management officer position within the Department of Public Safety. This funding specifically supports wildland fire operations east of the Missouri River, beginning June 30, 2026. The bill does not establish new policies but allocates resources for an existing operational need.
SB 240 appropriates $5 million from South Dakota's general fund to create a rural access infrastructure fund, directly affecting all counties by providing funding for infrastructure improvements on township and county secondary roads. Funds are distributed to counties based on their proportion of small structures (like bridges or culverts) on these roads relative to the statewide total, calculated using data reported to the Department of Transportation. The bill requires the Department of Revenue to distribute no more than one-third of the funds annually across fiscal years 2026-2028, with unspent funds reverting by June 2031. It declares an emergency to expedite implementation, focusing solely on the concrete funding mechanism and distribution rules without advocating for outcomes.
SB 212 establishes a new "homeowner tax reduction fund" in the South Dakota state treasury, administered by the Department of Revenue. The fund provides property tax rebates specifically for owner-occupied single-family homes. It is funded through dedicated state revenue (as specified in the bill's text), with interest earning on the fund remaining within it. The fund cannot be transferred to the general state budget, ensuring its dedicated use for homeowner rebates.
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.
HB 1307 limits annual increases in the assessed value of owner-occupied single-family homes in South Dakota to a maximum of 3% per year for property taxes payable in 2027-2031. This applies to all such properties within a county, with exceptions allowing higher increases for new construction or property reclassified as owner-occupied. Counties must still follow other assessment rules under § 10-6-121. The law takes effect July 1, 2027.
HB 1259 requires South Dakota's Department of Revenue to offer online applications for several existing property tax relief programs, replacing the current paper-form requirement. It directly affects property owners applying for relief, including veterans with service-connected disabilities, surviving spouses of veterans, paraplegics, and residents eligible for tax freezes. The bill amends multiple statutes (§§ 10-4-24.14, 10-4-40, 10-4-41, 10-6A-4, 10-6B-9, 10-6C-3) to mandate that applications for these programs must be accessible via the Department's website. This change streamlines the application process by allowing online submissions instead of paper forms, while maintaining confidentiality for all submitted documents.
SB 216 limits annual property tax valuation increases for owner-occupied single-family homes in South Dakota to 3% per year, starting from a base value determined by either the 2020 market value or the sale price if purchased between 2020 and 2026. The bill directly affects homeowners by preventing sudden tax hikes due to rising market values, while allowing reassessment at fair market value after a sale or ownership change. Exceptions permit higher valuation increases for property improvements (up to 40% of current value) or changes in property use or expansion. This policy aims to stabilize homeowners' tax burdens without altering the existing tax system's structure.
SB 228 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which are areas where property tax growth funds redevelopment projects. It updates the requirement that at least 50% of a district's area must be blighted or serve economic development goals (replacing a confusing "25 fifty percent" phrasing), and adds new consent rules: counties need municipal approval to create TIF districts within cities, and municipalities need county approval for districts within counties. These changes directly affect local governments (counties and municipalities) seeking to establish TIF districts for redevelopment. The bill focuses on clarifying eligibility criteria and intergovernmental coordination, not on funding amounts or project specifics.
