This amendment completely rewrites the bill from one about increasing property tax exemptions for disabled veterans to one about modifying public notice and voting procedures for school district excess tax levies. The change fundamentally REDIRECTS the bill's purpose from veteran tax relief to school finance procedural requirements.
26.847.12 26.847.13 101st Legislative Session 1241 2026 South Dakota Legislature House Bill 1241 SENATE TAXATION ENGROSSED This bill has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor. Introduced by: Representative Jensen (Phil) Underscores indicate new language. Overstrikes indicate deleted language. An Act to increase modify the amount requirements for public notice of value exempt from property taxes under a hearing prior to a vote to 1 impose an excess tax 1 relief program for disabled veterans levy, and surviving spouses. to modify requirements to refer an excess tax 2 levy of a school district to a vote. 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 4 Section 1. That § 10-4-40 a NEW SECTION be AMENDED: 4 10-4-40. Two hundred twenty-five thousand dollars of the full and true value of added to chapter 10-12: 5 the total amount of At least twenty-one days prior to a dwelling, or portion thereof, classified as owner-occupied pursuant 6 to §§ 10-13-39 to 10-13-40.4, inclusive, that is owned and occupied vote 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 the Department of Revenue. Any application or 10 supporting document for this exemption is confidential. Any A veteran who would 11 otherwise qualify for this exemption but fails to comply with the application deadline for 12 the owner-occupied classification or the deadline for application for this exemption may 13 petition the board of county commissioners a school district to recalculate the taxes based upon the owner-14 occupied classification and this exemption and abate or refund the difference in taxes 15 impose 6 an excess tax levy pursuant to chapter 10-18. 16 If § 10-12-43 or 10-12-43.1, the board shall publish, in the 7 legal newspaper designated pursuant to § 13-8-10 and on the district’s website, notice of 8 its intent to vote on the imposition of an excess tax levy. 9 The county director of equalization determines that shall mail or electronically transmit the veteran receives an exemption 17 notice 10 to all property owners in the district within the county's boundaries, and the school district 11 shall reimburse the county for printing and mailing costs incurred by the veteran's dwelling county pursuant 12 to this section, section. 13 The notice must include: 14 (1) The maximum amount under consideration in excess of the veteran retains that limitations applicable 15 to the exemption school district; 16 (2) The amount allowed to be imposed without an excess tax levy; 17 (3) The date, time, and location of the public hearing at which the board will vote to 18 until the impose an excess tax levy; 19 (4) The estimated increase in property ownership is transferred, the veteran does not occupy the dwelling, or 19 the property has a change in use. If the legal description of property is changed or 20 amended and the veteran continues to reside taxes, in the dwelling, district per one hundred thousand 20 dollars of taxable value, as a result of the veteran retains excess tax levy; and 21 (5) The intended use of moneys collected from the 21 exemption provided by this section. excess tax levy being considered. 22 The board of the school district shall, at the public hearing, provide taxpayers with 23 an opportunity to comment on the excess tax levy. 24 Section 2. That § 10-4-41 10-12-43 be AMENDED: 23 10-4-41. Two hundred twenty-five thousand dollars of the full and true value of 24 the total amount of a dwelling, or portion thereof, classified as owner-occupied pursuant 25 26.847.12 26.847.13 2 1241 Underscores indicate new language. Overstrikes indicate deleted language. to §§ 10-13-39 to 10-13-40.4, inclusive, is exempt 10-12-43. The governing body of the school district may raise additional revenues 1 for general fund purposes only, from property taxation if owned tax through the imposition of an excess tax 2 levy. The governing body of a school district may impose the excess tax levy with an 3 affirmative two-thirds vote of the governing body on or before July fifteenth of the year 4 prior to the year the taxes are payable. On any excess tax levy approved after July 1, 5 2002, the governing body of the taxing district shall specify in the resolution the year or 6 number of years the excess tax levy will be applied and 1 occupied by: 2 the total maximum dollar amount 7 of taxes payable over the full term of the excess tax levy. 8 The requirements for an announcement made pursuant to this section are as 9 follows: 10 (1) The surviving spouse decision of the governing body to originally impose or subsequently increase 11 an excess tax levy shall be first published within ten days of the decision; 12 (2) Publication shall be made at least twice in the legal newspaper designated pursuant 13 to § 13-8-10, with no fewer than five days between publication dates, before the 14 opt out takes effect; 15 (3) The announcement shall be at least three newspaper columns in width and four 16 inches in length or at least one-sixth of a veteran who was rated page in size, whichever size is greater; 17 (4) The announcement shall be headed with the following statement in a typeface no 18 less than eighteen point type: "ATTENTION TAXPAYERS: NOTICE OF PROPERTY 19 TAX INCREASE OF $(fill in amount)." The remainder of the announcement shall 20 consist of a reproduction of the "Resolution for Opt Out," including the amount that 21 property taxes will be increased annually by the proposed opt out and, the number 22 of years that the excess tax levy is to be applied, and the total maximum dollar 23 amount of taxes payable over the full term of the excess tax levy, a statement of 24 the right to refer the decision of the board to a vote of the people as permanently provided in 25 this section. The secretary of revenue, in rules promulgated pursuant to chapter 26 1-26, shall prescribe a uniform form to be used by the school district for notification 27 of taxpayers as required by this section. 28 However, the requirements of subdivisions (3) and totally (4) shall be waived if: 29 (A) The opt out is for less than fifteen thousand dollars; or 30 (B) A copy of the resolution for opt out is mailed to every property taxpayer in the local 31 governmental unit, by first class mail or bulk mail, within twenty days of the 32 decision to opt out; and 33 (C) A copy of the resolution for opt out is printed in each official newspaper in the local 34 governmental unit's boundaries. 35 26.847.13 3 disabled 1241 Underscores indicate new language. Overstrikes indicate deleted language. For the purposes of subsections (A), (B), and (C), the first publication is not 1 deemed to have occurred until three days after the mailing is sent or the resolution is 2 delivered to the official newspaper. 3 The opt out decision may be referred to a vote of the people upon a resolution of 4 the governing body of the school district or by a petition signed by at least five percent of 5 the registered voters in the school district and filed with the governing body within twenty 6 days of the first publication of the decision. The referendum election shall be held on or 7 before October first of the year prior to the time the taxes are payable. 8 Section 3. That § 10-12-43.1 be AMENDED: 9 10-12-43.1. A school district may raise additional revenues for capital outlay fund 10 purposes through the imposition of an excess tax levy. A school district seeking to impose 11 an excess tax levy pursuant to this section is subject to the same opt out procedures and 12 requirements as provided in § 10-12-43. The opt out decision may be referred to a vote 13 of the people in the same manner as provided in § 10-12-43. 14 A school district imposing an excess tax levy pursuant to this section shall exclude 15 any additional revenue generated by the excess tax levy from the total tax revenues 16 deposited in the capital outlay fund when calculating the maximum allowable transfer to 17 the school district's general fund authorized under § 13-16-6. Any additional Additional 18 revenue generated by the excess tax levy may only be used for capital outlay fund 19 purposes pursuant to § 13-16-6. 20 In no year may the annual tax levy for capital outlay fund purposes exceed the 21 levy authorized under § 13-16-7. 22 Section 4. That a service-connected disability; NEW SECTION be added to chapter 10-12: 23 The registered voters of a school district may refer a resolution adopted by the 24 board of a school district to impose an excess tax levy, pursuant to § 10-12-43 or 10-12-25 43.1, by filing a petition with the business manager of the school district. The petition 26 must be signed by at least five percent of the registered voters of the school district, based 27 on the total number of registered voters of the school district, or signed by two thousand 28 registered voters in the school district, whichever is less, within twenty days of the 29 adoption of the resolution. 30 The ballot used for an excess tax levy election must clearly state the number of 31 years the excess tax levy is to be applied and the total maximum dollar amount of taxes 32 payable over the full term of the excess tax levy. The election must be conducted in the 33 26.847.13 4 1241 Underscores indicate new language. Overstrikes indicate deleted language. same manner as a special election conducted pursuant to § 13-16-6.4, except that the 1 referendum election must be held on or before October first of the year prior to the year 2 the taxes are payable. 3 Section 5. That a NEW SECTION be added to chapter 10-13: 4 At least twenty-one days prior to a vote to impose an excess tax levy pursuant to 5 § 10-13-36, the governing body of a taxing district shall publish, in the legal newspaper 6 designated pursuant to § 13-8-10 and on the district’s website, notice of its intent to vote 7 on the imposition of an excess tax levy. 8 For excess tax levies imposed by a district other than a county, the county director 9 of equalization shall mail or electronically transmit the notice to all property owners in the 10 district within the county's boundaries, and the district shall reimburse the county for 11 printing and mailing costs incurred by the county pursuant to this section. 12 For excess tax levies imposed by a county, the county director of equalization shall 13 mail or electronically transmit the notice to all property owners in the county. 14 The notice must include: 15 (1) The maximum amount under consideration in excess of the limitations applicable 16 to the taxing district; 17 (2) The surviving spouse amount allowed to be imposed without an excess tax levy; 18 (3) The date, time, and location of a veteran, who receives dependency and indemnity 5 compensation from the United States Department public hearing at which the governing body will 19 vote to impose an excess tax levy; 20 (4) The estimated increase in property taxes in the district, per one hundred thousand 21 dollars of Veterans Affairs taxable value, as a result of 6 the veteran's service-connected death. 7 excess tax levy; and 22 (5) The surviving spouse shall apply for this partial exemption intended use of moneys collected from the excess tax levy being considered. 23 The governing body of the district shall, at the public hearing, provide taxpayers 24 with an opportunity to comment on a form prescribed by 8 the secretary of revenue. Any the Department of Revenue. The application or and 9 supporting document for this exemption is confidential. Any A surviving spouse who would 10 otherwise qualify for this exemption but fails to comply with the application deadline for 11 the owner-occupied classification or the deadline for application for this exemption may 12 petition the board of county commissioners to recalculate the taxes based upon the owner-13 occupied classification and this exemption and abate or refund the difference in taxes 14 pursuant to chapter 10-18. 15 If the director of equalization determines that the surviving spouse receives an 16 exemption for the dwelling pursuant to this section, the surviving spouse retains that the 17 exemption until the property ownership is transferred, the surviving spouse does not 18 occupy the dwelling, the surviving spouse remarries, or the property has a change in use. 19 If the legal description of property is changed or amended and the surviving spouse 20 continues to reside in the dwelling, the surviving spouse retains the exemption provided 21 by this section. 22 excess tax levy. 25