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provide a sales and use tax exemption for goods and services related to data center operations.

This bill creates a sales and use tax exemption for companies operating data centers in South Dakota, allowing them to avoid paying sales tax on computer equipment, software, cooling systems, power infrastructure, and other specialized machinery needed to run the facilities. The exemption applies to items used solely for data center operations, excluding equipment related to cryptocurrency mining. This tax break is designed to attract data center investment to the state by reducing operational costs for qualifying businesses.

provide a sales tax holiday on firearms.

South Dakota would create an annual sales tax holiday on firearms starting December 1st each year. During this period, purchases of guns would be exempt from the state's sales tax, allowing buyers to avoid the normal tax they would otherwise pay. This is a new exemption that doesn't currently exist under South Dakota sales tax law.

exempt any soil amendment used exclusively for agricultural purposes from sales tax.

Farmers who buy soil amendments in bulk quantities of 500 pounds or more for agricultural use will no longer have to pay sales tax on those purchases. This new exemption applies to products like fertilizers and other soil additives defined under state agricultural law, reducing costs for farmers making large soil improvement purchases.

exempt certain sales at farmers' markets from sales tax.

South Dakota farmers' markets will no longer collect sales tax on certain products sold directly to consumers, including fresh fruits and vegetables, meat, eggs, dairy, baked goods, flowers, and artisanal items. This exemption applies only to sales at established farmers' markets where multiple independent producers sell agricultural products directly to shoppers. The change makes these farmers' market purchases tax-free while maintaining sales tax on the same products sold elsewhere.

reduce the sales and use tax rates on food, to increase the rates for certain taxes, use taxes, and excise taxes, and to provide a new fund for school district capital outlay projects.

HB1281 lowers the sales tax rate on food while raising sales and use tax rates on other goods and services, along with certain excise taxes. The bill also creates a new fund dedicated to helping school districts pay for capital outlay projects like building repairs and expansions. These tax changes are designed to shift the tax burden away from groceries and toward other purchases to fund school infrastructure improvements.

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.

protect residents from increased utility costs and utility shortages caused by data centers, to clarify authority to regulate data centers, and to modify provisions pertaining to the purchasing of goods and services by a data center.

SB 235 exempts data centers from sales taxes on their purchases and requires data center operators to pay the full cost of their own electricity without shifting expenses to residential customers. The bill also prohibits electric utilities from raising rates or adding surcharges on residential customers to cover data center infrastructure or electricity costs. This protects South Dakota homeowners from subsidizing the utility expenses of large data center operations.

provide an additional means of determining the purchase price of a used motor vehicle acquired by gift or other transfer.

This bill adds a new option for calculating sales tax on used vehicles given as gifts or transferred between private individuals—allowing the tax to be based on a submitted bill of sale instead of automatically using retail value when no bill of sale is provided. Currently, if someone receives a used vehicle as a gift or transfer and doesn't submit a bill of sale to the county treasurer, the state assesses tax based on the vehicle's retail value; this change gives people an alternative method to determine the taxable purchase price.

proposing and submitting to the voters at the next general election, an amendment to state law to reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

South Dakota voters would decide whether to reduce property taxes on owner-occupied homes while increasing sales taxes on certain goods and services to offset the lost revenue. The proposal would lower the school property tax rate for homeowners from $2.51 per $1,000 of home value to essentially zero, while raising gross receipts and use tax rates elsewhere in state law.

increase the annual fee required of an owner of an electric motor vehicle.

South Dakota now requires electric vehicle owners to pay an annual $100 fee when they register their vehicles each year, in addition to regular license fees. The money collected goes into the state highway fund. This fee applies to battery-powered cars and trucks designed for public roads but excludes electric motorcycles.

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.

authorize the shipment of distilled spirits directly to consumers, and to provide a penalty therefor.

South Dakota distilleries (both in-state and out-of-state) can now ship distilled spirits directly to consumers by obtaining a direct shipper license from the Department of Revenue for $100, provided they register their brand labels and hold a South Dakota sales tax license. Common carriers that transport these spirits can also obtain a distilled spirits carrier license to legally deliver these shipments. This change allows consumers to receive spirits shipped directly rather than only purchasing through traditional retail channels.