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).
HB 1318 prohibits South Dakota from engaging with or investing in "natural asset companies," defined as for-profit entities that manage ecological resources like soil, biodiversity, or water quality for financial gain. The bill bans state contracts, investments, and bonds involving these companies, prohibits them from operating in the state, and voids any contracts entered after July 1, 2026. It also requires the Secretary of State to revoke business licenses for such companies and prevents natural assets (e.g., land, water rights) from being transferred to them. The law applies broadly to corporations and LLCs classified as natural asset companies but excludes state retirement systems and investment councils.
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.
HB 1206 clarifies that parents, guardians, or caregivers who have filed a notification of "alternative instruction" with South Dakota's Department of Education or school district cannot use state public funds (as defined in §4-4-2) to pay for a child's education. The bill directly affects families utilizing alternative education arrangements who have submitted the required notification. It prohibits these individuals from accessing state education funds for their child's schooling if the notification is on file. This policy change specifically restricts the use of public funds for alternative instruction methods already documented with education authorities.
This bill (SB 58) modifies South Dakota's property tax code to eliminate a specific county road maintenance levy. It amends Section 10-12-13 to reduce the maximum annual tax levy for county highway and bridge reserve funds from $0.90-$1.20 per $1,000 of taxable value to $0.00 per $1,000. This change directly affects counties that previously used this levy to fund road maintenance, requiring them to find alternative funding sources for highway and bridge projects. The bill does not alter general property tax rates or other levy types; it specifically targets the road maintenance tax provision.
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.
SB 18 repeals a requirement that banks add back to their South Dakota franchise tax base any bad debt deductions they claimed on federal tax returns but later determined were not actually worthless. This change eliminates the need for banks to adjust their state taxable income for "recovered" bad debts, potentially lowering their tax burden. The bill directly affects banks operating in South Dakota subject to the state's franchise tax on banking activities. It removes specific provisions in the tax code that previously mandated this adjustment for bad debt accounting.
HB 1186 requires South Dakota municipalities to obtain written approval from county commissioners before creating a tax increment financing district. This directly affects municipalities seeking to establish such districts and the counties where those districts would be located. The key provision mandates that county boards of commissioners must approve the district's creation through a formal resolution, either for the entire county or the portion within the county. The bill changes the process by adding county consent as a mandatory step, ensuring local county input before municipal tax district development begins.
HB 1131 amends how South Dakota school districts calculate their fall enrollment for state education funding. The bill specifically requires districts to exclude students residing in residential treatment facilities (when the facility operates the education program) from their enrollment count used in the funding formula. This change directly affects school districts serving students in such facilities, potentially altering their state funding amounts based on revised enrollment calculations. The amendment clarifies an existing definition within the state's education funding structure without changing other elements like teacher salary formulas or English learner adjustments.
This bill proposes a constitutional amendment that would limit property taxes in South Dakota to no more than 1% of a property's assessed value. It also caps annual increases to assessed property values at 2% (starting with 2027 valuations) and allows adjustments for ownership changes, renovations, or damage. The amendment would affect all real property owners in South Dakota by restricting how local governments can levy taxes on their land and buildings. Voters would need to approve this change at the next general election for it to take effect.
