Changes to Existing Law

26.197.41 26.197.42 101st Legislative Session 118 2026 South Dakota Legislature Senate Bill 118 SENATE TAXATION ENGROSSED Introduced by: Senator Crabtree Underscores indicate new language. Overstrikes indicate deleted language. An Act to deposit certain tax revenues into a homeowner tax reduction fund. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That a NEW SECTION be added to chapter 10-13: 3 There is created in the state treasury the homeowner tax reduction fund. On or 4 before January thirty-first of each year, the treasurer shall deposit in the 4 homeowner tax reduction fund, as created in Senate Bill 125, and enacted by the One 5 Hundred First Legislature, the greater 5 of one hundred million dollars, or the applicable 6 percent of taxes collected in the previous 6 year pursuant to: 7 (1) Chapter 10-45; 8 (2) Chapter 10-46; 9 (3) Chapter 10-46E; and 10 (4) Chapter 10-58; and 10-58. 11 (5) § 32-5B-20. 12 The Department of Revenue shall administer If Senate Bill 125 does not become effective, the fund. The purpose of the fund is 13 to provide a property tax rebate for owner-occupied single-family dwellings. Interest on 14 moneys credited to the fund must remain in the fund. Expenditures from the fund must 15 be budgeted through the general appropriation bill. 16 Moneys in the fund state treasurer may not be transferred to the general fund. 17 transfer 12 moneys under this section. 13 For purposes of this section, "applicable percent" means three-tenths percent 18 14 divided by the tax rate provided for the taxes referenced in subdivisions (1) to (5), 19 (4), 15 inclusive, of this section, as applicable. 20 16 Section 2. That § 10-46-48 be AMENDED: 21 17 10-46-48. All revenue arising under the operation of this chapter shall 22 18 immediately be turned over to the state treasurer and by him credited to the general fund, 23 19 except as otherwise provided in section 1 of this Act. 24 26.197.41 2 118 Underscores indicate new language. Overstrikes indicate deleted language. 20 Section 3. That § 10-46E-9 be AMENDED: 1 21 10-46E-9. The revenue from the tax imposed by this chapter shall be deposited 2 22 in the general fund, except as otherwise provided in section 1 of this Act. 3 23 26.197.42 2 118 Underscores indicate new language. Overstrikes indicate deleted language. Section 4. That § 10-58-5 be AMENDED: 4 1 10-58-5. The tax generated by this chapter must be deposited in the general fund, 5 2 except as otherwise provided in section 1 of this Act. 6 3 Section 5. This Act is effective beginning July 1, 2027. 7 4