Budget & Taxes

passed · South Dakota · House Feb 9, 2026

HB 1283: exempt nonresident active-duty military personnel and their dependents from payment of motor vehicle license fees.

HB 1283 exempts nonresident active-duty military personnel and their dependents stationed in South Dakota from paying state motor vehicle license fees on one noncommercial vehicle (car, truck, or van). To qualify, applicants must submit military orders showing their nonresident status and active duty stationing in South Dakota along with their vehicle registration. The exemption covers license fees only and must be renewed annually, but it does not apply to specialty license plates or the excise tax paid when purchasing a vehicle. This policy directly affects military members and families temporarily stationed in South Dakota while maintaining their primary residence elsewhere.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by exempting military personnel from vehicle license fees, reducing state revenue collection for a specific group.95% confidence

Sub-Topics Procurement Sales Tax

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signed · South Dakota · House Mar 4, 2026

HB 1260: authorize the establishment of municipal property tax rebate programs.

HB 1260 allows South Dakota municipalities to create programs that rebate property taxes on owner-occupied single-family homes within their borders. If a city or town adopts such a program through a local ordinance, it must provide rebates to qualifying homeowners who meet the criteria set by that ordinance. The bill specifically limits rebates to taxes levied directly by the municipality, not state or county taxes. This policy change gives local governments a tool to potentially reduce housing costs for residents, but only if they choose to implement such a program.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes municipal property tax rebates for owner-occupied homes, providing direct tax relief to qualifying residents and reducing local tax burden per bill's intent.90% confidence

Sub-Topics Property Tax

passed both · South Dakota · Senate Mar 2, 2026

SB 223: modify the requirements for a petition to refer an excess tax levy of a school district to a vote.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces petition signatures for school tax levies (5% vs 50 voters), facilitating voter approval of tax increases and aligning with fiscal management processes.85% confidence ✓ EducationSupports EducationBill eases petition requirements for school tax levies, facilitating voter approval of funding increases for school districts.85% confidence

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passed · South Dakota · House Feb 17, 2026

HB 1312: limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

HB 1312 limits annual increases in the assessed value of owner-occupied single-family homes to an inflation-based index, preventing rapid tax hikes for homeowners. It applies only to homes where the owner lives, not rentals or commercial properties. The bill requires full reassessment at market value when a home is sold (capped at sale price), and allows limited value increases for property improvements or changes in use. Taxing districts must maintain revenue levels from 2025 or earlier, adjusted for inflation, to avoid exceeding mill rate limits.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits annual property tax increases for homeowners via inflation-based cap, preventing rapid hikes and providing tax relief per bill summary.95% confidence

Sub-Topics Property Tax

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passed · South Dakota · Senate Feb 23, 2026

SJR 507: proposing and submitting to the voters at the next general election, an amendment to state law to reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

SJR 507 proposes a constitutional amendment for voter approval that would reduce property taxes for owner-occupied homes while increasing business tax rates. Specifically, it would lower the maximum school district tax rate for single-family owner-occupied homes from $20.50 to $5.21 per $1,000 of taxable value, and raise the gross receipts tax rate for retailers and service businesses from 4.2% to 5%. This tax swap would directly affect homeowners through lower property taxes and businesses through higher sales tax rates on goods and services. The amendment requires voter approval at the next general election before taking effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces property taxes for owner-occupied homes (middle-income relief) while increasing business taxes, promoting fiscal balance through a tax swap.90% confidence ✗ EducationOpposes EducationBill explicitly lowers school district tax rate for owner-occupied homes ($20.50 → $5.21), directly reducing a primary K-12 funding source and weakening school finances.90% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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in committee · South Dakota · Senate Feb 25, 2026

SB 213: create the building opportunity through out-of-school time program and the building opportunity through out-of-school time program fund, authorize a new fee, make an appropriation therefor, and transfer moneys to the building opportunity through out-of-school time program fund.

This bill creates the "Building Opportunity Through Out-of-School Time Program" and establishes a dedicated state fund to support after-school and summer programs for students. The program fund, administered by the South Dakota Department of Education, provides grants to eligible providers (like school districts or qualified nonprofits) to cover staffing, materials, and transportation costs for evidence-based out-of-school time programming. Priority is given to programs serving under-served students, fostering community partnerships, and supplementing existing funding. The fund is supported by a new fee and state appropriations, with grants distributed annually based on applications submitted between August 1 and September 30.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates dedicated fund and appropriates state money for after-school programs, advancing public education funding through new grants and fee authorization.90% confidence ✓ EducationSupports EducationCreates dedicated state fund for after-school programs, allocates grants to expand educational access for under-served students through evidence-based programming.95% confidence

Sub-Topics Appropriations

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passed · South Dakota · House Feb 20, 2026

HB 1317: eliminate a limit on the accumulation of the unused index factor for property taxation.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves 10% annual cap on property tax increases, enabling local governments to collect more revenue without restriction.95% confidence

Sub-Topics Property Tax Revenue

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passed · South Dakota · House Mar 2, 2026

HB 1261: provide a tax credit for owner-occupied property, to make an appropriation therefor, and to transfer moneys to the general fund.

HB 1261 provides a property tax credit for homeowners of single-family residences in South Dakota, reducing their 2027 property tax bills by up to $500 or the full tax amount owed, whichever is lower. The credit applies automatically to tax bills sent by county treasurers for owner-occupied homes. To fund the credit, $120 million is reallocated from the housing infrastructure fund ($60 million) and the general fund/budget reserve ($60 million each), with the state treasurer transferring funds to cover the revenue loss. This policy directly affects single-family homeowners paying property taxes in 2027, while the funding mechanism ensures no new state revenue is required.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax credit for homeowners, reducing tax burden via budget reallocation from housing and general funds, aligning with tax relief and fiscal management.95% confidence ✓ HousingSupports HousingBill provides property tax credit for homeowners, directly supporting property rights as defined in the housing topic.80% confidence

Sub-Topics Property Tax State Budget Tax Credits Homeownership Housing Finance Property Taxes

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died · South Dakota · House Feb 12, 2026

HB 1297: provide for the study of statewide transit needs and the economic impacts of public transit, and to make an appropriation therefor.

HB 1297 appropriates $125,000 from the general fund to the South Dakota Department of Transportation to study statewide public transit needs and their economic impacts. The study must specifically examine how public transit affects workforce availability and influences Medicaid spending, institutional placements, and healthcare utilization. The Department of Transportation must submit a final report with findings and recommendations to the Legislative Research Council by November 30, 2026. This bill directly affects state transportation planning and provides funding for a specific research project, with no new regulations or services created.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $125,000 from general fund for transit study, directly funding public service analysis under state budget management.95% confidence ✓ TransportationSupports TransportationAppropriates $125,000 for a study on public transit needs and economic impacts, directly funding research to inform future transportation decisions.90% confidence

Sub-Topics Appropriations State Budget Public Transit

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passed · South Dakota · Senate Feb 20, 2026

SB 243: impose a transaction tax and dedicate revenues collected to supplant certain property taxes, and to provide a penalty therefor.

SB 243 imposes a new transaction tax on retail purchases: $1.50 for items $15 or more, and 10% for items under $15. Revenues from this tax fund a "property tax replacement fund" to reduce property tax levies for specific property types. The fund prioritizes eliminating taxes on owner-occupied homes first, then agricultural property, and finally nonagricultural property - reducing each category equally until funds run out. Property owners in South Dakota would see lower tax bills for these categories, while retailers must collect and remit the tax, with penalties for non-payment (misdemeanor for late payment, felony for false returns).

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes transaction tax to fund property tax reductions for homeowners, agricultural, and nonagricultural properties, providing direct tax relief through dedicated revenue allocation.95% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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