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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.

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.

exempt certain nonresident military personnel from payment of motor vehicle excise tax.

# HB 1128 Summary This bill exempts nonresident military personnel from paying South Dakota's motor vehicle excise tax when they register vehicles in the state. The change adds a new category of exempt vehicles to state law, allowing eligible military members stationed out of state to avoid this tax that normally applies to most vehicle purchases and transfers.

encouraging honest economic development rooted in the republican principles of limited government, deregulation, and organic entrepreneurial growth.

This is a nonbinding resolution expressing the South Dakota Legislature's support for free-market economic development based on limited government, deregulation, and reducing business subsidies and tax incentives. It does not change any existing state law but encourages future legislative and executive policies to prioritize reducing regulations and eliminating government business incentives rather than offering tax credits or subsidies to attract companies.

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.

authorize municipalities to establish a local funding mechanism for capital improvement projects.

South Dakota cities can now create a local funding mechanism for capital improvement projects by imposing a gross receipts tax of up to one percent on businesses within their borders. To implement this tax, a city must establish a five-member capital improvement board (made up of one city council member and four residents) that reviews and approves any ordinance establishing the tax, which must specify its purpose and minimum revenue target. This gives municipalities a new revenue option to fund infrastructure and other capital projects without needing state approval.

exempt nonresident active-duty military personnel and their dependents from payment of motor vehicle license fees.

Active-duty military personnel stationed in South Dakota and their dependents who are not South Dakota residents can now apply to be exempt from paying motor vehicle license fees for one personal vehicle (car, pickup truck, or van). They must provide military orders or proof of active-duty status to qualify for the exemption, which can be renewed yearly but does not cover specialty license plate fees or the state excise tax on vehicle purchases. This creates a new exemption category in South Dakota law to reduce the licensing burden on military members temporarily stationed in the state.