Budget & Taxes (Property Tax)

passed · South Dakota · House Mar 9, 2026

HB 1253: adjust the assessment methodology for owner-occupied single-family dwellings and nonagricultural property.

HB 1253 adjusts how property taxes are calculated for owner-occupied single-family homes and nonagricultural land by using a special averaging method. It requires county assessors to set each property's taxable value based on the "Olympic average" (removing the highest and lowest values) of its fair market value over the past eight years, or since a recent change in use or addition. This aims to stabilize tax bills by smoothing out annual value fluctuations. The bill specifically prevents this adjustment from increasing taxes on agricultural properties. It directly affects homeowners and nonagricultural property owners in South Dakota.

Topics ✓ Budget & TaxesSupports Budget & TaxesStabilizes property tax bills by averaging past values, preventing annual spikes and providing relief for homeowners through consistent assessment methodology.95% confidence

Sub-Topics Property Tax

Track

passed · South Dakota · House Feb 17, 2026

HB 1289: modify requirements to create a tax increment financing district.

HB 1289 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which local governments use to fund development projects by capturing future tax growth in designated areas. The bill changes the requirement that a district's assessed value plus existing TIF districts cannot exceed 10.5% (previously 50%) of a political subdivision's total taxable property value. It also revises the criteria for designating a TIF district, requiring that either 25% of the district's area be blighted or 50% must stimulate economic development, and adds new consent rules: counties need municipal approval to create a TIF within city limits, and cities need county approval for TIFs spanning county areas. These changes directly affect counties and municipalities seeking to establish TIF districts for economic development projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases TIF district cap from 5% to 10.5%, expanding local government funding tools for development projects through tax increment financing.90% confidence ✗ HousingOpposes HousingReduces TIF district cap from 50% to 10.5% of taxable value, restricting funding mechanisms for housing development projects.85% confidence

Sub-Topics Property Tax Property Development Property Taxes

Track

failed · South Dakota · House Feb 24, 2026

HB 1308: reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

This bill reduces property taxes for homeowners by lowering the mill levy rate on owner-occupied single-family homes from $5.21 to $20.51 per $1,000 of taxable value (with the exact figure clarified in the bill text). It simultaneously raises the state sales tax from 4.2% to 4.7% for 2026-2027 and to 5% after 2027, and expands the gross receipts tax to cover more services like dry cleaning, beauty shops, and rentals. The revenue from these tax increases is explicitly allocated to replace lost school district property tax revenue and fund pay raises for state and school employees. The bill ensures school districts maintain their total funding levels under the new system.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces property taxes for homeowners while raising sales/gross receipts taxes to fund state education, aligning with budget management goals per subjects and revenue allocation.95% confidence ✓ EducationSupports EducationRevenue from increased sales/gross receipts taxes explicitly allocated to replace lost education funding per subjects and summary.95% confidence

Sub-Topics Business Taxes Property Tax Sales Tax School Funding

Track

passed · South Dakota · Senate Feb 20, 2026

SB 230: make an exception for improvement districts from a limit on revenue growth for purposes of property taxation.

SB 230 creates an exception for "improvement districts" (defined under South Dakota Chapter 7-25A) to the standard 3% annual limit on property tax revenue growth. This allows these districts to collect additional property tax revenue when property values increase due to improvements, annexations, or boundary changes - exceeding the usual cap. The exception specifically applies to revenue generated from property taxes tied to those improvements, not general district taxes. It directly affects improvement districts and property owners within them by enabling higher tax collections during development phases. The bill amends Section 10-13-35 of South Dakota law to clarify this exception for property tax revenue calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes 3% property tax revenue cap for improvement districts tied to actual property value increases, enabling targeted revenue collection for district improvements within fiscal management framework.90% confidence

Sub-Topics Property Tax Revenue

Track

passed · South Dakota · Senate Feb 19, 2026

SB 226: increase a limit on video lottery gaming, and to deposit moneys into a new fund.

SB 226 increases the payout limit for video lottery machines (allowing more than $1,000 per bet) and redirects excess revenue from video lottery gaming into a new fund. Specifically, after $165 million annually is deposited into the video lottery operating fund, any additional state share of video lottery revenue must go to the "residential tax reduction fund." This fund, administered by the Department of Revenue, provides property tax relief for owner-occupied single-family homes. The bill changes how video lottery revenue is distributed but does not alter the current 50% state share of net machine income.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects excess video lottery revenue to a property tax relief fund for homeowners, directly reducing taxes on owner-occupied homes per bill's explicit language.95% confidence

Sub-Topics Property Tax

Track

passed · South Dakota · House Feb 17, 2026

HB 1319: update provisions related to tax increment financing districts.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exclusions for affordable housing and qualifying commercial/industrial properties, reducing tax burden for development while promoting housing affordability.95% confidence ✓ HousingSupports HousingBill explicitly includes affordable housing as qualifying for tax exclusions, incentivizing development through tax benefits.95% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives Affordable Housing Property Taxes Renters

Track

passed · South Dakota · Senate Feb 20, 2026

SB 212: establish the homeowner tax reduction fund.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax rebates for homeowners via dedicated fund, reducing tax burden on owner-occupied homes95% confidence

Sub-Topics Property Tax Revenue State Budget

Track

passed · South Dakota · House Feb 19, 2026

HB 1307: limit the annual increase in assessed value of each owner-occupied single-family dwelling.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits annual property tax assessment increases to 3%, providing direct tax relief for homeowners and promoting fiscal responsibility in property taxation.95% confidence

Sub-Topics Property Tax

Track

in committee · South Dakota · House Feb 23, 2026

HB 1259: require that the Department of Revenue provide for an online application for property tax relief programs.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables easier access to existing property tax relief programs for eligible groups like veterans and disabled residents, facilitating tax relief implementation.85% confidence ✓ VeteransSupports VeteransBill explicitly includes veterans with service-connected disabilities as eligible for property tax relief, streamlining access via online applications to improve benefit accessibility.90% confidence

Sub-Topics Property Tax

Track

passed · South Dakota · Senate Feb 23, 2026

SB 216: limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits annual property tax valuation increases for homeowners, preventing sudden tax hikes and providing tax relief, aligning with support indicators.95% confidence

Sub-Topics Property Tax

Track