South Dakota's SB 12 allows qualifying veterans with certain disabilities (like loss of use of both lower extremities) or their unremarried surviving spouses to request refunds for property taxes paid in the previous four years if they missed the application deadline for an existing property tax exemption. The bill amends tax exemption rules to permit petitions to county commissioners for these refunds, which the commissioners may approve or deny at their discretion. It directly affects veterans and surviving spouses who previously paid taxes they might have qualified to avoid. The refund mechanism applies only to taxes paid in the four years prior to the petition, not future exemptions.
This bill appropriates $425,000 from South Dakota's general fund to the Department of Revenue to provide tax refunds for real property tax and sales tax to elderly residents and individuals with disabilities. The refunds are based on existing laws (chapters 10-18A and 10-45A), with up to $20,000 allowed for administrative costs. The bill declares an emergency to allow immediate implementation and requires unspent funds by June 30, 2027, to revert to the general fund. It directly affects eligible elderly and disabled taxpayers by providing financial relief on specific taxes.
HB 1193 requires South Dakota counties to refund property taxes to disabled veterans and surviving spouses who qualify for tax exemptions under §§ 10-4-40 and 10-4-41 but missed application deadlines. The bill amends § 10-18-1 to explicitly allow refunds for the difference in taxes paid over the previous four years when eligibility requirements are otherwise met. This applies to veterans rated permanently and totally disabled from service-connected disabilities and their surviving spouses (including those receiving VA dependency compensation). The refund mechanism ensures counties must recalculate taxes and return overpayments when the only barrier was a missed deadline. It does not change eligibility criteria but adds a procedural remedy for administrative errors.
HB 1036 would limit annual property tax increases for South Dakota homeowners of single-family residences and nonagricultural property to a maximum of 3% per year. This affects most residential homeowners and nonfarm property owners by capping how much their assessed tax value can rise annually, unless specific exceptions apply. The cap does not apply if ownership changes, the property's use changes, or major additions (increasing value over 40%) are made, but minor renovations or expansions under 40% value increase are excluded. This policy aims to provide stability in property tax assessments for qualifying properties.
HB 1241 increases the property tax exemption amount for disabled veterans and surviving spouses in South Dakota. It amends existing law (§ 10-4-40 for veterans and § 10-4-41 for surviving spouses) to raise the value of a primary residence exempt from property taxes. Currently set at $225,000, this exemption applies to owner-occupied homes where the veteran is permanently and totally disabled from service-connected injuries, or to surviving spouses of such veterans. To qualify, applicants must submit a confidential form to the Department of Revenue and maintain occupancy; the exemption ends if they sell the home, stop living there, or remarry (for surviving spouses).
SB 109 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which are areas where increased property tax revenue from development is used to fund improvements. The bill requires that at least 50% of a district's area must be designated as "blighted" (meeting specific criteria like deteriorated structures or unsafe conditions) or serve economic development purposes. It also adds new consent requirements: counties need municipal approval to create districts within city limits, and municipalities need county approval for districts in unincorporated areas. The bill clarifies the definition of "blighted area" to include factors like substandard structures, inadequate infrastructure, or safety hazards. These changes directly affect local governments (municipalities and counties) seeking to establish TIF districts for redevelopment projects.
SB 125 creates a state fund to provide property tax rebates for owner-occupied single-family homes in South Dakota. The Department of Revenue will calculate annual rebates using a formula: multiplying $2 by the number of eligible homeowners, subtracting that from the fund's total, and dividing by the number of homeowners. Rebates are capped at either this calculated amount or the portion of property taxes exceeding $250 per home. The fund cannot be diverted to the general state budget, and any unused funds must stay in the fund or cover administrative costs. This directly affects homeowners who live in single-family residences and pay property taxes.
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 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.
HB 1168 creates a property tax credit for South Dakota homeowners who pay for qualifying K-12 education expenses for children aged 5-19. The credit covers tuition, school fees (including sports/fine arts), textbooks, tutoring, test fees, transportation, and educational technology. It limits the credit to $1,000 per year or 80% of the school district taxes owed. Homeowners must apply annually by June 1st with documentation from the school or alternative instruction provider.
