The amendment clarifies that garages and ancillary structures related to residential use are included in the owner-occupied classification regardless of whether they are attached or unattached, and removes a duplicate definition from the contractor section that was redundant with the owner section. This STRENGTHENS the bill's original purpose by making the eligibility rules for multiple structures more explicit and comprehensive.
26.907.18 26.907.19 101st Legislative Session 154 2026 South Dakota Legislature Senate Bill 154 Introduced by: Senator Hulse Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to clarify the eligibility of multiple garages or structures to be classified as 1 owner-occupied. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 10-13-39 be AMENDED: 4 10-13-39. Each owner-occupied single-family dwelling in this state is specifically 5 classified for the purpose of taxation. For the purposes of this section, an owner-occupied 6 single-family dwelling is a house, condominium apartment, residential housing consisting 7 of four or less family units, town house, town home, housing cooperatives where 8 membership in the cooperative is strictly limited to stockholder occupants of the building, 9 dwelling as classified in § 10-13-39.1, and manufactured or mobile home as defined in 10 § 32-3-1, which is assessed and taxed as a separate unit, including an attached or 11 unattached garage. unit. An owner-occupied single-family dwelling includes all garages and 12 ancillary structures related to the residential use of the dwelling by the owner, and the 13 parcel parcels of land upon which the structure is garages or structures are situated, as 14 recorded in the records of the director of equalization. 15 A person may only have one dwelling, which is the person's principal place of 16 residence as defined in § 12-1-4, classified as an owner-occupied single-family dwelling. 17 If the owner occupies fifty percent or more of the living space within the dwelling, the 18 entire dwelling is classified as an owner-occupied single- family single-family dwelling. If the owner 19 occupies a duplex, triplex, or fourplex, or less than fifty percent of the living space within 20 the dwelling, the portion of the dwelling so occupied shall must be classified as an owner-21 occupied owner-occupied single-family dwelling. 22 23 Section 2. That § 10-13-45 be AMENDED: 24 26.907.18 2 154 Underscores indicate new language. Overstrikes indicate deleted language. 10-13-45. Any contractor that has constructed or is constructing a single-family 1 dwelling, as defined in § 10-13-39, for the purpose of selling the dwelling to be occupied 2 as a single-family dwelling may apply to have the property specifically classified for the 3 26.907.19 2 154 SB154 ENROLLED purpose of taxation pursuant to §§ 10-13-39 to 10-13-40.3, inclusive, as an owner-4 occupied owner-occupied single-family dwelling. For the purposes of this section, a single-family dwelling 5 is a house, condominium apartment, residential housing consisting of four or less family 6 units, town house, or town home, which may be assessed and taxed as a separate unit, 7 including an attached or unattached garage and the parcel of land upon which the 8 structure is situated as recorded in the records of the director of equalization. 9 A contractor may only have a maximum of four dwellings classified as owner-10 occupied owner-occupied single-family dwellings. If any portion of the space is or has been occupied, only 11 the portion of the dwelling not currently or previously occupied shall be classified as an 12 owner-occupied single-family dwelling. The contractor shall comply with the application 13 provisions imposed on the owner-occupant pursuant to §§ 10-13-39 to 10-13-40.3, 14 inclusive. However, no No dwelling, pursuant to this section, may be classified as an 15 owner-occupied single-family dwelling for more than two consecutive years. 16 26.907.19 3 154 SB154 ENROLLED An Act to clarify the eligibility of multiple garages or structures to be classified as owner-occupied. I certify that the attached Act originated in the: Senate as Bill No. 154 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. 154 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