Starting July 1, 2027, South Dakota will redirect a portion of tax revenue from sales taxes, use taxes, and other business taxes into a new homeowner tax reduction fund instead of putting all that money in the general fund. Each year, the state treasurer must deposit whichever is greater: $100 million or a small percentage (three-tenths of one percent divided by the applicable tax rate) of the previous year's tax collections from these sources. This change only takes effect if a related bill (Senate Bill 125) also becomes law.
The amendment removes the bill's original language creating and administering the homeowner tax reduction fund independently, instead making the fund contingent on Senate Bill 125 being enacted and having the state treasurer administer deposits only if that bill fails to pass. This NARROWS and significantly WEAKENS the bill by making it a backup mechanism rather than a standalone tax reduction program.
Other amendments
Senate Do Pass Amended Failed, YEAS 16, NAYS 17. S.J. 375
Senate Placed on calendar pursuant to JR 6F-6 Passed, YEAS 20, NAYS 14. S.J. 271
Taxation Report out of committee without recommendation as amended
Senate Recalled from committee (Rule 7-7) Senate Taxation S.J. 245
Taxation Deferred to the 41st legislative day Passed, YEAS 4, NAYS 3. S.J. 11
Taxation Do Pass Amended Failed, YEAS 3, NAYS 4. S.J. 11
Taxation Motion to amend S.J. 10
Taxation Scheduled for hearing
First read in Senate and referred to Senate Taxation S.J. 112
Prime sponsor · Sen.
R
Do Pass Amended
Placed on calendar pursuant to JR 6F-6
Taxation — Do Pass Amended
Taxation — Deferred to the 41st legislative day