Changes to Existing Law

26.342.18 26.342.19 101st Legislative Session 1193 2026 South Dakota Legislature House Bill 1193 HOUSE TAXATION ENGROSSED Introduced by: Representative Randolph Underscores indicate new language. Overstrikes indicate deleted language. An Act to require authorize that a county provide a refund of taxes to disabled veterans and 1 surviving spouses under certain property tax relief programs. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 10-4-40 be AMENDED: 4 10-4-40. Two hundred thousand dollars of the full and true value of the total 5 amount of a dwelling or portion thereof classified as owner-occupied pursuant to §§ 10-6 13-39 to 10-13-40.4, inclusive, that which is owned and occupied by a veteran who is 7 rated as permanently and totally disabled from a service-connected disability, is exempt 8 from property taxation. The veteran shall apply for this partial exemption on a form 9 prescribed by the secretary of revenue. Any application or supporting document for this 10 exemption is confidential. 11 Any veteran who would otherwise qualify for this exemption but fails to comply 12 with the application deadline for the owner-occupied classification or the deadline for 13 application for this exemption may petition the board of county commissioners to 14 recalculate the taxes based upon the owner-occupied classification and this exemption 15 and. If the veteran meets all eligibility requirements for this exemption except for the 16 application deadline, the board must may abate or refund the difference in taxes accumulated 17 over a period not exceeding the previous four years, pursuant to chapter 10-18. 18 If the director of equalization determines that the veteran receives an exemption 19 for the veteran's dwelling pursuant to this section, the veteran retains that exemption 20 until the property ownership is transferred, the veteran does not occupy the dwelling, or 21 the property has a change in use. If the legal description of property is changed or 22 amended and the veteran continues to reside in the dwelling, the veteran retains the 23 exemption provided by this section. 24 Section 2. That § 10-4-41 be AMENDED: 25 26.342.18 26.342.19 2 1193 Underscores indicate new language. Overstrikes indicate deleted language. 10-4-41. Two hundred thousand dollars of the full and true value of the total 1 amount of a dwelling, or portion thereof, classified as owner-occupied pursuant to §§ 10-2 13-39 to 10-13-40.4, inclusive, is exempt from property taxation if owned and occupied 3 by: 4 (1) The surviving spouse of a veteran who was rated as permanently and totally 5 disabled from a service-connected disability; or 6 (2) The surviving spouse of a veteran, who receives dependency and indemnity 7 compensation from the United States Department of Veterans Affairs as a result of 8 the veteran's service-connected death. 9 The surviving spouse shall apply for this partial exemption on a form prescribed by 10 the secretary of revenue. Any application or supporting document for this exemption is 11 confidential. 12 Any surviving spouse who would otherwise qualify for this exemption but fails to 13 comply with the application deadline for the owner-occupied classification or the deadline 14 for application for this exemption may petition the board of county commissioners to 15 recalculate the taxes based upon the owner-occupied classification and this exemption 16 and. If the surviving spouse meets all eligibility requirements for this exemption except 17 for the application deadline, the board must may abate or refund the difference in taxes 18 accumulated over a period not exceeding the previous four years, pursuant to chapter 10-19 18. 20 If the director of equalization determines that the surviving spouse receives an 21 exemption for the dwelling pursuant to this section, the surviving spouse retains that 22 exemption until the property ownership is transferred, the surviving spouse does not 23 occupy the dwelling, the surviving spouse remarries, or the property has a change in use. 24 If the legal description of property is changed or amended and the surviving spouse 25 continues to reside in the dwelling, the surviving spouse retains the exemption provided 26 by this section. 27 Section 3. That § 10-18-1 be AMENDED: 28 10-18-1. Unless otherwise expressly provided, if a person, against whom an 29 assessment has been made or a tax levied, claims that the assessment or tax or any part 30 of the assessment or tax is invalid for any reason provided in subdivisions (1) to (6), 31 inclusive, this section, the assessment or tax may be abated, or the tax refunded if paid. 32 The board of county commissioners may abate or refund, in whole or in part, the invalid 33 assessment or tax in the following cases only: 34 26.342.18 26.342.19 3 1193 Underscores indicate new language. Overstrikes indicate deleted language. (1) If an error has been made in any identifying entry or description of the real 1 property, in entering the valuation of the real property or in the extension of the 2 tax, to the injury of the complainant; 3 (2) If improvements on any real property were considered or included in the valuation 4 of the real property, which did not exist on the real property at the time fixed by 5 law for making the assessment; 6 (3) If the complainant or the property is exempt from the tax; 7 (4) If the complainant had no taxable interest in the property assessed against the 8 complainant at the time fixed by law for making the assessments; 9 (5) If taxes have been erroneously paid or error made in noting payment or issuing 10 receipt for the taxes paid; 11 (6) If the same property has been assessed against the complainant more than once 12 in the same year, and the complainant produces satisfactory evidence that the tax 13 for the year has been paid; or 14 (7) A person qualifies for the property tax exemption under § 10-4-40 or 10-4-41, but 15 failed to comply with the application deadline. 16 However, no No tax may be abated on any real property which that has been sold 17 for taxes, while a tax certificate is outstanding. 18

26.342.19 26.342.20 101st Legislative Session 1193 2026 South Dakota Legislature House Bill 1193 HOUSE TAXATION ENGROSSED Introduced by: Representative Randolph Underscores indicate new language. Overstrikes indicate deleted language. An Act to authorize that a county provide modify the provisions for a refund of taxes to disabled veterans and 1 surviving spouses under certain property tax relief programs. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 10-4-40 be AMENDED: 4 10-4-40. Two hundred thousand dollars of the full and true value of the total 5 amount of a dwelling or portion thereof classified as owner-occupied pursuant to §§ 10-6 13-39 to 10-13-40.4, inclusive, that which is owned and occupied by a veteran who is 7 rated as permanently and totally disabled from a service-connected disability, is exempt 8 from property taxation. The veteran shall apply for this partial exemption on a form 9 prescribed by the secretary of revenue. Any application or supporting document for this 10 exemption is confidential. 11 Any veteran who would otherwise qualify for this exemption but fails to comply 12 with the application deadline for the owner-occupied classification or the deadline for 13 application for this exemption may petition the board of county commissioners to 14 recalculate the taxes based upon the owner-occupied classification and this exemption 15 and. and, and the board may abate or refund the difference in taxes in the same manner set 16 forth in chapter 10-18. 17 If the veteran meets all eligibility requirements for this exemption except for the 16 18 application deadline, deadline due to a pending claim for a permanent and total disability rating 19 through the United States Department of Veteran Affairs, the board may must abate or refund 20 the difference in taxes accumulated 17 over a period since the effective date of the claim, but not exceeding 21 the previous four years, years pursuant to to. The abatement or refund of taxes must be made in 22 accordance with chapter 10-18. 18 23 If the director of equalization determines that the veteran receives an exemption 19 24 for the veteran's dwelling pursuant to this section, the veteran retains that exemption 20 25 until the property ownership is transferred, the veteran does not occupy the dwelling, or 21 26 26.342.20 2 1193 Underscores indicate new language. Overstrikes indicate deleted language. the property has a change in use. If the legal description of property is changed or 22 1 amended and the veteran continues to reside in the dwelling, the veteran retains the 23 2 exemption provided by this section. 24 3 Section 2. That § 10-4-41 be AMENDED: 25 26.342.19 2 1193 Underscores indicate new language. Overstrikes indicate deleted language. 4 10-4-41. Two hundred thousand dollars of the full and true value of the total 1 5 amount of a dwelling, or portion thereof, classified as owner-occupied pursuant to §§ 10-2 10-6 13-39 to 10-13-40.4, inclusive, is exempt from property taxation if owned and occupied 3 7 by: 4 8 (1) The surviving spouse of a veteran who was rated as permanently and totally 5 9 disabled from a service-connected disability; or 6 10 (2) The surviving spouse of a veteran, who receives dependency and indemnity 7 11 compensation from the United States Department of Veterans Affairs as a result of 8 12 the veteran's service-connected death. 9 13 The surviving spouse shall apply for this partial exemption on a form prescribed by 10 14 the secretary of revenue. Any application or supporting document for this exemption is 11 15 confidential. 12 16 Any surviving spouse who would otherwise qualify for this exemption but fails to 13 17 comply with the application deadline for the owner-occupied classification or the deadline 14 18 for application for this exemption may petition the board of county commissioners to 15 19 recalculate the taxes based upon the owner-occupied classification and this exemption 16 20 and. If the surviving spouse meets all eligibility requirements for this exemption except 17 21 for the application deadline, the board may abate or refund the difference in taxes 18 22 accumulated over a period not exceeding the previous four years, pursuant to chapter 10-19 10-23 18. 20 24 If the director of equalization determines that the surviving spouse receives an 21 25 exemption for the dwelling pursuant to this section, the surviving spouse retains that 22 26 exemption until the property ownership is transferred, the surviving spouse does not 23 27 occupy the dwelling, the surviving spouse remarries, or the property has a change in use. 24 28 If the legal description of property is changed or amended and the surviving spouse 25 29 continues to reside in the dwelling, the surviving spouse retains the exemption provided 26 30 by this section. 27 31 Section 3. That § 10-18-1 be AMENDED: 28 32 26.342.20 3 1193 Underscores indicate new language. Overstrikes indicate deleted language. 10-18-1. Unless otherwise expressly provided, if a person, against whom an 29 1 assessment has been made or a tax levied, claims that the assessment or tax or any part 30 2 of the assessment or tax is invalid for any reason provided in subdivisions (1) to (6), 31 3 inclusive, this section, the assessment or tax may be abated, or the tax refunded if paid. 32 4 The board of county commissioners may abate or refund, in whole or in part, the invalid 33 5 assessment or tax in the following cases only: 34 26.342.19 3 1193 Underscores indicate new language. Overstrikes indicate deleted language. 6 (1) If an error has been made in any identifying entry or description of the real 1 7 property, in entering the valuation of the real property or in the extension of the 2 8 tax, to the injury of the complainant; 3 9 (2) If improvements on any real property were considered or included in the valuation 4 10 of the real property, which did not exist on the real property at the time fixed by 5 11 law for making the assessment; 6 12 (3) If the complainant or the property is exempt from the tax; 7 13 (4) If the complainant had no taxable interest in the property assessed against the 8 14 complainant at the time fixed by law for making the assessments; 9 15 (5) If taxes have been erroneously paid or error made in noting payment or issuing 10 16 receipt for the taxes paid; 11 17 (6) If the same property has been assessed against the complainant more than once 12 18 in the same year, and the complainant produces satisfactory evidence that the tax 13 19 for the year has been paid; or 14 20 (7) A person qualifies for the property tax exemption under § 10-4-40 or 10-4-41, but 15 21 failed to comply with the application deadline. 16 22 However, no No tax may be abated on any real property which that has been sold 17 23 for taxes, while a tax certificate is outstanding. 18 24

26.342.20 26.342.21 101st Legislative Session 1193 2026 South Dakota Legislature House Bill 1193 HOUSE ENGROSSED Introduced by: Representative Randolph Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to modify the provisions for a refund of taxes to disabled veterans and 1 surviving spouses under certain property tax relief programs. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 10-4-40 be AMENDED: 4 10-4-40. Two hundred thousand dollars of the full and true value of the total 5 amount of a dwelling or portion thereof classified as owner-occupied pursuant to §§ 10-6 13-39 10-13-39 to 10-13-40.4, inclusive, that which is owned and occupied by a veteran who is 7 rated as permanently and totally disabled from a service-connected disability, is exempt 8 from property taxation. The veteran shall apply for this partial exemption on a form 9 prescribed by the secretary of revenue. Any application or supporting document for this 10 exemption is confidential. 11 Any veteran who would otherwise qualify for this exemption but fails to comply 12 with the application deadline for the owner-occupied classification or the deadline for 13 application for this exemption may petition the board of county commissioners to 14 recalculate the taxes based upon the owner-occupied classification and this exemption 15 and, exemption, and the board may abate or refund the difference in taxes in the same manner set 16 forth in chapter 10-18. 17 If the veteran meets all eligibility requirements for this exemption except for the 18 application deadline due to a pending claim for a permanent and total disability rating 19 through the United States Department of Veteran Affairs, the board must abate or refund 20 the difference in taxes accumulated since the effective date of the claim, but not exceeding 21 the previous four years pursuant to. years. The abatement or refund of taxes must be made in 22 accordance with chapter 10-18. 23 If the director of equalization determines that the veteran receives an exemption 24 for the veteran's dwelling pursuant to this section, the veteran retains that exemption 25 until the property ownership is transferred, the veteran does not occupy the dwelling, or 26 26.342.20 26.342.21 2 1193 Underscores indicate new language. Overstrikes indicate deleted language. HB1193 ENROLLED the property has a change in use. If the legal description of property is changed or 1 amended and the veteran continues to reside in the dwelling, the veteran retains the 2 exemption provided by this section. 3 Section 2. That § 10-4-41 be AMENDED: 4 10-4-41. Two hundred thousand dollars of the full and true value of the total 5 amount of a dwelling, or portion thereof, classified as owner-occupied pursuant to §§ 10-6 13-39 10-13-39 to 10-13-40.4, inclusive, is exempt from property taxation if owned and occupied 7 by: 8 (1) The surviving spouse of a veteran who was rated as permanently and totally 9 disabled from a service-connected disability; or 10 (2) The surviving spouse of a veteran, who receives dependency and indemnity 11 compensation from the United States Department of Veterans Affairs as a result of 12 the veteran's service-connected death. 13 The surviving spouse shall apply for this partial exemption on a form prescribed by 14 the secretary of revenue. Any application or supporting document for this exemption is 15 confidential. 16 Any surviving spouse who would otherwise qualify for this exemption but fails to 17 comply with the application deadline for the owner-occupied classification or the deadline 18 for application for this exemption may petition the board of county commissioners to 19 recalculate the taxes based upon the owner-occupied classification and this exemption 20 and. exemption. If the surviving spouse meets all eligibility requirements for this exemption except 21 for the application deadline, the board may abate or refund the difference in taxes 22 accumulated over a period not exceeding the previous four years, pursuant to chapter 10-23 18. 24 10-18. If the director of equalization determines that the surviving spouse receives an 25 exemption for the dwelling pursuant to this section, the surviving spouse retains that 26 exemption until the property ownership is transferred, the surviving spouse does not 27 occupy the dwelling, the surviving spouse remarries, or the property has a change in use. 28 If the legal description of property is changed or amended and the surviving spouse 29 continues to reside in the dwelling, the surviving spouse retains the exemption provided 30 by this section. 31 Section 3. That § 10-18-1 be AMENDED: 32 26.342.20 3 1193 Underscores indicate new language. Overstrikes indicate deleted language. 10-18-1. Unless otherwise expressly provided, if a person, against whom an 1 assessment has been made or a tax levied, claims that the assessment or tax or any part 2 of the assessment 26.342.21 3 1193 HB1193 ENROLLED or tax is invalid for any reason provided in subdivisions (1) to (6), 3 inclusive, this section, the assessment or tax may be abated, or the tax refunded if paid. 4 The board of county commissioners may abate or refund, in whole or in part, the invalid 5 assessment or tax in the following cases only: 6 (1) If an error has been made in any identifying entry or description of the real 7 property, in entering the valuation of the real property or in the extension of the 8 tax, to the injury of the complainant; 9 (2) If improvements on any real property were considered or included in the valuation 10 of the real property, which did not exist on the real property at the time fixed by 11 law for making the assessment; 12 (3) If the complainant or the property is exempt from the tax; 13 (4) If the complainant had no taxable interest in the property assessed against the 14 complainant at the time fixed by law for making the assessments; 15 (5) If taxes have been erroneously paid or error made in noting payment or issuing 16 receipt for the taxes paid; 17 (6) If the same property has been assessed against the complainant more than once 18 in the same year, and the complainant produces satisfactory evidence that the tax 19 for the year has been paid; or 20 (7) A person qualifies for the property tax exemption under § 10-4-40 or 10-4-41, but 21 failed to comply with the application deadline. 22 However, no No tax may be abated on any real property which that has been sold 23 for taxes, while a tax certificate is outstanding. 24 26.342.21 4 1193 HB1193 ENROLLED An Act to modify the provisions for a refund of taxes to disabled veterans and surviving spouses under certain property tax relief programs. I certify that the attached Act originated in the: House as Bill No. 1193 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1193 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State