Budget & Taxes (Property Tax)

died · South Dakota · Senate Feb 12, 2026

SB 203: require the review of a financing plan to establish a tax increment financing district.

SB 203 requires local governments (cities or counties) to obtain an independent third-party review before establishing a tax increment financing district. This review must analyze the project's cost-benefit, projected changes in property tax distribution over time, and expected impacts on jobs, housing, and economic activity. The bill applies to any area where property taxes would be used to fund development projects within a defined district. It adds this review step to existing requirements for creating such districts but does not change who can establish them.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires third-party review for TIFs to analyze fiscal impacts, promoting responsible budget management within tax increment financing.80% confidence

Sub-Topics Debt & Bonds Property Tax Tax Incentives

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in committee · South Dakota · Senate Feb 20, 2026

SB 126: increase the amount of value exempt from property taxes under a tax relief program for disabled veterans and surviving spouses.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled veterans, providing direct tax relief to eligible homeowners, aligning with tax relief indicators for lower-income groups.95% confidence ✓ VeteransSupports VeteransIncreases property tax exemption for disabled veterans and surviving spouses, directly expanding tax benefits and reducing their financial burden.90% confidence

Sub-Topics Property Tax Tax Incentives

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signed · South Dakota · House Mar 30, 2026

HB 1051: revise property tax levies for school districts and to revise the state aid to general and special education formulas.

HB 1051 revises South Dakota school districts' property tax limits and updates state funding formulas. It sets new maximum tax rates: $4.22 per $1,000 of property value for general funds, $1.13 for agricultural land, and $2.51 for owner-occupied homes, all based on valuations at 85% of market value. The bill also changes how school enrollment is calculated for state aid, clarifying that students in state custody (e.g., foster care) count toward enrollment and adding rules for tuition payments. These changes directly affect all South Dakota public school districts by altering their tax capacity and state funding calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesSets maximum property tax rates for school districts, promoting fiscal responsibility in education funding through defined tax caps and revised state aid formulas.95% confidence ✓ EducationSupports EducationRevises property tax levies and state aid formulas to adjust school district funding mechanisms, explicitly updating state aid calculations for general and special education funding.92% confidence

Sub-Topics Property Tax Higher Education School Funding Special Education

passed · South Dakota · Senate Feb 18, 2026

SB 144: provide property tax relief to certain senior owners of owner-occupied single-family dwellings.

SB 144 provides property tax relief to South Dakota seniors meeting specific criteria: individuals aged 65+ who have owned an owner-occupied single-family home for 10+ years, lived in the state for 25+ years, and have no delinquent property taxes. The bill establishes a property tax assessment freeze, locking the taxable value of qualifying homes at either the 2020 value or the value when the homeowner first qualified, preventing increases due to rising market values. Homeowners must apply through county treasurers with required documentation, and the freeze applies annually as long as the homeowner continues to meet eligibility. This directly affects eligible senior homeowners in South Dakota who own and reside in single-family homes meeting the defined residency and ownership requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct property tax relief to qualifying seniors (65+), freezing assessments to reduce their tax burden, aligning with tax relief for lower/middle income groups.95% confidence

Sub-Topics Property Tax Tags Seniors

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passed · South Dakota · House Jan 22, 2026

HB 1032: eliminate a limit on the accumulation of the unused index factor for property taxation.

HB 1032 eliminates a 10% cap on how much unused property tax revenue authority counties and municipalities in South Dakota can accumulate from prior years. Currently, local governments could only use up to the prior three years' total of unused tax revenue calculations or 10% of the tax base, whichever was lower. The bill removes the 10% limit, allowing local governments to utilize all accumulated unused tax revenue authority without this restriction. This directly affects South Dakota counties and municipalities that collect property taxes, changing how they calculate annual tax revenue limits. The change modifies specific sections of state tax law (§ 10-13-35.4 and § 10-13-35.5) to remove the percentage cap.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves 10% cap on unused property tax revenue, promoting fiscal flexibility for local governments to utilize accumulated funds without restriction.95% confidence

Sub-Topics Property Tax Revenue

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failed · South Dakota · Senate Feb 24, 2026

SB 196: increase the income limits for a property tax assessment freeze.

This bill increases the income limits for South Dakota's property tax assessment freeze program. It raises the current thresholds from $55,000 for single-member households and $65,000 for multiple-member households to higher levels that automatically adjust each year. The new limits will increase annually based on the greater of either the consumer price index (CPI) or the federal Social Security cost-of-living adjustment, starting January 1, 2027. This change helps more homeowners qualify for the tax freeze as inflation rises, directly affecting those with household incomes near the new thresholds who own and occupy single-family homes.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax freeze eligibility for lower/middle-income homeowners by raising income thresholds annually with inflation, providing direct tax relief.95% confidence

Sub-Topics Property Tax

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failed · South Dakota · Senate Feb 23, 2026

SB 199: establish a new fund to provide property tax relief.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates Property Tax Relief Fund to lower taxes for homeowners/businesses, directly supporting tax relief through dedicated funding mechanism.95% confidence

Sub-Topics Business Taxes Property Tax State Budget

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