The amendment removed language requiring county commissioners to follow procedures "notwithstanding any other provision of law" when granting veteran property tax exemptions, and instead inserted a standard clause allowing them to consider refunds "in its discretion"—WEAKENING the bill by making tax refunds for veterans more discretionary rather than mandatory when eligibility criteria are met.
26.116.26 26.116.27 101st Legislative Session 12 2026 South Dakota Legislature Senate Bill 12 Introduced by: Senator Otten Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to provide for a refund of property taxes in previous years for qualifying 1 veterans and surviving spouses. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 10-4-24.10 be AMENDED: 4 10-4-24.10. A dwelling or part of a dwelling designed as provided in § 10-4-24.9 5 that is owned and occupied for the full calendar year in which a tax is to be levied by a 6 paraplegic veteran, a veteran with the loss or loss of use of both lower extremities, or the 7 unremarried widow or widower of the veteran is exempt from taxation. Notwithstanding 8 any other provision of law, if If the director of equalization determines that a veteran or 9 the veteran's unremarried widow or widower is entitled to the exemption provided in this 10 section, the veteran or the veteran's unremarried widow or widower retains that 11 exemption until the property ownership is transferred, the veteran or the veteran's 12 unremarried widow or widower ceases to occupy the dwelling, or the property has a 13 change in use. If the legal description of the property is changed, the exemption remains 14 in place as long as the veteran or the veteran's unremarried widow or widower continues 15 to reside in the dwelling. 16 Any veteran who would otherwise qualify for this exemption but fails to comply 17 with the application deadline for the owner-occupied classification or the deadline for 18 application for this exemption may petition the board of county commissioners to refund 19 the taxes paid in any of the previous four years on the property that would otherwise 20 qualify for the exemption. The board of county commissioners may, in its discretion, reject 21 or approve the application for a refund. The petition for, and the consideration and 22 issuance of, a property tax refund under this section must be in the manner set forth in 23 chapter 10-18. 24 Section 2. That § 10-18-2 be AMENDED: 25 26.116.26 26.116.27 2 12 Underscores indicate new language. Overstrikes indicate deleted language. SB12 ENROLLED 10-18-2. The board of county commissioners may compromise, abate or rebate 1 taxes in the following cases: 2 (1) The board may abate any or all of the delinquent taxes and penalty on real property 3 if taxes remain unpaid and the property has been offered for sale as required by 4 the code for two successive years and not sold because of depreciation in the value 5 of the property or otherwise, or if any property has been bid in by the county and 6 one year has elapsed since the bid; 7 (2) If the board determines that the full amount of any taxes extended and charged 8 against any real property platted into lots and blocks cannot be realized by a sale 9 of the property or otherwise, it may settle or compromise any of the taxes for any 10 year or years as in its judgment is in the best interest of the county; 11 (3) The board may compromise, abate, or cancel any taxes extended against any real 12 property conveyed to the State of South Dakota for the benefit of any of its 13 educational institutions, or when the county has acquired lands through foreclosure 14 of permanent school fund mortgage loans, courthouse building fund loans, jail 15 building fund loans, courthouse and jail building fund loans, or through foreclosure 16 of mortgages pledged to the county to secure county deposits or lands taken in 17 satisfaction thereof; 18 (4) The board may, as a means of relief, abate in an equitable manner the taxes 19 assessed or extended against real property for the year in which a loss occurred 20 because of flood, fire, storm, or other unavoidable casualty; 21 (5) Repealed by SL 1992, ch 80, § 148; 22 (6) If the board determines that the full amount of any taxes extended and charged 23 against a centrally assessed railroad company cannot be realized by a sale of the 24 property or otherwise, and the railroad is in bankruptcy or receivership, the board 25 may settle or compromise any of the taxes for any year or years as in its judgment 26 is in the best interest of the county; 27 (3) The board may compromise, abate, or cancel any taxes extended against any real property conveyed to the State of South Dakota for the benefit of any of its educational institutions, or when the county has acquired lands through foreclosure of permanent school fund mortgage loans, courthouse building fund loans, jail building fund loans, courthouse and jail building fund loans, or through foreclosure of mortgages pledged to the county to secure county deposits or lands taken in satisfaction thereof; (4) The board may, as a means of relief, abate in an equitable manner the taxes assessed or extended against real property for the year in which a loss occurred because of flood, fire, storm, or other unavoidable casualty; (5) Repealed by SL 1992, ch 80, § 148; (6) If the board determines that the full amount of any taxes extended and charged against a centrally assessed railroad company cannot be realized by a sale of the property or otherwise, and the railroad is in bankruptcy or receivership, the board may settle or compromise any of the taxes for any year or years as in its judgment is in the best interest of the county; (7) The board may abate or refund the taxes assessed or extended on any real 28 property from which structures have been removed after the assessment date upon 29 verification by the director of equalization; 30 (8) The board may abate or refund the taxes pursuant to § 10-6A-4; 31 (9) The board may abate or refund the taxes pursuant to § 10-13-40.4; 32 (10) The board may abate or refund the taxes pursuant to § 10-4-40; and 33 (11) The board may abate or refund the taxes pursuant to § 10-4-24.10. 34 26.116.26 26.116.27 3 12 Underscores indicate new language. Overstrikes indicate deleted language. SB12 ENROLLED The amount of any such taxes so compromised, abated, or refunded shall be 1 apportioned pro rata among the several funds and taxing districts affected thereby. 2 3 26.116.27 4 12 SB12 ENROLLED An Act to provide for a refund of property taxes in previous years for qualifying veterans and surviving spouses. I certify that the attached Act originated in the: Senate as Bill No. 12 Secretary of the Senate President of the Senate Attest: Secretary of the Senate Speaker of the House Attest: Chief Clerk of the House Senate Bill No. 12 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