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modify the provisions for a refund of taxes to disabled veterans and surviving spouses under certain property tax relief programs.

South Dakota is expanding property tax relief for disabled veterans and their surviving spouses by allowing them to request refunds of taxes paid in previous years if they missed application deadlines—with special consideration given to veterans whose disability claims are still pending with the federal government. The bill lets county commissioners refund the difference in taxes dating back up to four years for veterans who otherwise qualified but missed the filing deadline. This change makes the tax relief program more accessible by giving disabled veterans a second chance to claim benefits they're entitled to.

reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

This bill eliminates property taxes on owner-occupied, single-family homes by setting their school mill levy to zero, starting in 2027. To replace the lost property tax revenue for schools and fund state employee and Medicaid provider pay increases, the bill raises sales tax and gross receipts tax rates across the state. The changes are designed to shift the tax burden from homeowners to consumers making purchases.

provide for a refund of property taxes in previous years for qualifying veterans and surviving spouses.

Veterans with severe disabilities and their surviving spouses can now petition their county commissioners for refunds of property taxes paid in the previous four years if they missed the deadline to apply for the homeowner exemption they qualify for. The county commissioners can decide whether to approve or reject these refund requests. This change gives qualifying veterans and their spouses a second chance to claim tax relief they were legally entitled to but failed to apply for on time.

increase the amount of value exempt from property taxes under a tax relief program for disabled veterans and surviving spouses.

South Dakota's property tax exemption for disabled veterans increases from $200,000 to $300,000 of home value, meaning disabled veterans who are rated as permanently and totally disabled from service-connected injuries can now shield an additional $100,000 from property taxes. The bill also makes similar adjustments to the exemption available for surviving spouses of such veterans. This change reduces property tax bills for these veterans and their families.

clarify the eligibility of multiple garages or structures to be classified as owner-occupied.

This bill clarifies that multiple garages and structures on the same property as an owner-occupied home are part of that single residential classification for tax purposes, as long as they're recorded with the county assessor. The change ensures that owners aren't taxed separately on ancillary structures like detached garages or storage buildings that support their primary residence.

repeal an exemption for certain health care facilities.

SB 161 removes a tax exemption that previously applied to certain health care facilities by repealing two sections of state law that provided special exemption rules. Going forward, health care facilities and charitable organizations will be taxed on any property they own that is used for non-charitable or non-health care purposes, just like other property owners are taxed.

increase the income limits for a property tax assessment freeze.

This bill raises the income limits for homeowners to qualify for South Dakota's property tax assessment freeze, increasing the threshold from $55,000 to $65,000 for single-person households and from $65,000 to $85,000 for multi-person households. Starting in 2027, these income limits will automatically increase each year based on inflation (whichever is higher: the consumer price index or the change in Social Security payments). This makes it easier for more moderate-income homeowners to freeze their property tax assessments on their primary residences.

provide a property tax credit for the payment of nonpublic school tuition.

South Dakota property owners can now receive a credit on their school district property taxes if they pay tuition for a child (ages 5-18) attending a nonpublic school in the state. The credit is limited to the lesser of 80% of their school district taxes or $1,000 per year, and the child does not need to be the property owner's own child to qualify. This creates a new tax benefit for families supporting private school education.

create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.

SB 99 creates a new fund to help replace property tax revenue by increasing sales taxes on certain goods and services, while reducing school property taxes—particularly eliminating taxes on owner-occupied homes starting in 2027. The bill modifies South Dakota's gross receipts tax and use tax rates across multiple categories to generate revenue for this replacement fund. Essentially, it shifts some school funding from property taxes to sales taxes, with homeowners seeing the biggest property tax relief.

authorize the establishment of municipal property tax rebate programs.

South Dakota cities can now create property tax rebate programs that give homeowners money back on their municipal property taxes if they meet criteria set by the city. Cities that establish such a program must give rebates to anyone who qualifies under the rules the city creates. This is a new option for municipalities—they're not required to offer rebates, but they now have the legal authority to do so.

provide a tax credit for owner-occupied property, to make an appropriation therefor, and to transfer moneys to the general fund.

South Dakota homeowners who own single-family houses will receive a property tax credit of up to $500 on their 2027 tax bills. The state will fund this tax credit by transferring $101 from the housing infrastructure fund to the general fund and appropriating $202 total from the general fund and budget reserve fund to the Department of Revenue to cover the lost tax revenue.

eliminate a limit on the accumulation of the unused index factor for property taxation.

South Dakota counties and municipalities currently can only use unused property tax growth allowance (called the "index factor") from the previous three years, but this bill removes that time limit so they can accumulate and use this unused growth allowance indefinitely. The bill also requires county auditors to track the total amount of unused index factor that has accumulated since 2024. This gives local governments more flexibility to increase property tax revenue in future years using growth allowances they didn't use in the past.

provide property tax relief to certain senior owners of owner-occupied single-family dwellings.

This bill creates a new property tax relief program for senior homeowners in South Dakota. Seniors age 65 and older who have owned their single-family home for at least 10 years, lived in South Dakota for at least 25 years, and have no unpaid property taxes can apply to freeze their home's assessed value at its 2020 level (or the level when they first qualified, whichever is later), preventing future property tax increases on that home.

revise property tax levies for school districts and to revise the state aid to general and special education formulas.

Starting in 2027, this bill lowers the maximum property tax rate that school districts can charge on residential homes while adjusting rates for agricultural land and other properties. The new limits set the general school fund levy at $4.87 per $1,000 of property value (down from the previous rate), with homeowners paying just $0.67 per $1,000 on owner-occupied homes and farmers paying $1.05 per $1,000 on agricultural land. The bill also changes how state education funding formulas work to account for these new property tax limits.

limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

This bill caps how much the assessed value of owner-occupied single-family homes can increase each year—limiting it to the state's inflation index factor—while allowing reassessment at fair market value when the home is sold. The cap starts with a baseline established for the 2025 assessment year and protects homeowners from steep annual property tax increases due to rising home values. The bill also ensures that this valuation limit doesn't shift the tax burden onto other property owners or agricultural land.

modify tax refunds for elderly persons and persons with a disability.

This bill expands tax relief eligibility for elderly residents and people with disabilities by clarifying that receiving property tax assistance doesn't disqualify them from also getting sales tax refunds. The bill also updates references to federal tax law and adjusts rules for special assessments on homes owned by seniors and disabled persons, allowing municipalities to waive or reduce these fees based on age, disability status, or household income.

deposit certain tax revenues into a homeowner tax reduction fund.

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.

establish the homeowner tax reduction fund.

South Dakota is creating a new "homeowner tax reduction fund" in the state treasury to help lower property taxes for people who own single-family homes. The Department of Revenue will manage the fund, and any money set aside for it must stay in the fund rather than being transferred elsewhere, though the Legislature will decide how much to spend from it each year through the budget process.

establish the homeowner tax reduction fund.

South Dakota creates a new homeowner tax reduction fund in the state treasury to provide property tax rebates for people who own single-family homes. The Department of Revenue will manage the fund, and any interest earned stays in the fund rather than going elsewhere. Money can only be spent from this fund through the state budget process and cannot be transferred to the general fund.

make an appropriation for tax refunds for elderly persons and persons with a disability, and to declare an emergency.

The state will spend $425,000 to refund real property taxes and sales taxes owed by elderly people and people with disabilities under existing state programs. Up to $20,000 of that money can be used to cover the Department of Revenue's administrative costs for processing these refunds. The bill declares an emergency so the funding takes effect immediately rather than waiting for the normal legislative process.

adjust a limit on the percentage increase in revenue payable from property taxes.

SB 97 increases the cap on how much additional property tax revenue certain South Dakota taxing districts can collect from new improvements and property changes—raising the limit from 3% to 5% for the years 2027 through 2031. This change allows local governments (except schools) to collect more tax revenue when property values increase due to new construction or other improvements, though they still cannot exceed the basic 3% revenue growth limit or the index factor in other circumstances.

honoring Custer State Park cabin owners and their property rights.

This concurrent resolution honors the 37 private cabin owners in Custer State Park and endorses their property rights, while encouraging the state to address their concerns about lease renewals and protection of their interests. The resolution does not change state law but expresses the Legislature's support for finding solutions to protect these cabin owners' future in the park as their leases expire.

modify the requirements for public notice of a hearing prior to a vote to impose an excess tax levy, and to modify requirements to refer an excess tax levy of a school district to a vote.

This bill requires South Dakota school districts to give property owners at least 21 days' notice before voting on an excess tax levy, with notices published in newspapers, on district websites, and mailed directly to property owners by the county. The notice must include the maximum tax increase amount, the standard levy limit, hearing details, the estimated tax impact per $100,000 of property value, and how the money will be used. School districts must reimburse counties for the costs of printing and mailing these notices to property owners.