South DakotaSouth Dakota directs tax revenue to a homeowner property tax fund
South Dakota directs money to a fund for education levies on owner-occupied homes, including a set transfer in 2026 and a share of certain tax collections starting in 2027.
What it does
The Department of Revenue administers a fund intended to reduce the local effort for general education levies on owner-occupied single-family homes. Spending must be budgeted through the general appropriation bill.
The treasurer deposits a calculated share of four types of tax collections into the property tax reduction fund, starting with collections made on or after August 1, 2027.
The treasurer transfers nearly $56 million from the general revenue replacement fund to the homeowner property tax reduction fund.
Argument forSetting aside revenue for education levies on owner-occupied single-family homes could reduce the local tax effort those levies require.
Argument againstSending part of certain tax collections to this fund could leave less of that revenue in the general fund for other state needs.
More detail
The Department of Revenue administers a state fund for property tax relief. The fund is intended to provide relief for owner-occupied single-family dwellings. Fund money must be used to reduce the local effort for general education levies on owner-occupied single-family homes. Spending must be budgeted through the general appropriation bill. Interest stays in the fund, and its money may not be transferred to the general fund. The text does not state a separate start date for the fund.
The state treasurer deposits a calculated share of certain tax collections into the fund. The rule applies to the four types of taxes listed in the text. The share is three-tenths of one percent divided by the applicable tax rate. The referenced taxes are collected under Chapters 10-45, 10-46, 10-46E, and 10-58. Sections 2 to 5 take effect beginning July 1, 2027. The deposit rule applies to taxes collected on or after August 1, 2027.
The state treasurer transfers $55,896,576 from the general revenue replacement fund to the homeowner property tax reduction fund. The transfer is from the general revenue replacement fund to the homeowner property tax reduction fund. The transfer is directed for July 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Signed by the Governor Larry Rhoden on 2026-03-30 S.J. 548Became Law
- Mar 12Delivered to the Governor on 2026-03-12 S.J. 541To Governor
- Mar 12Signed by the Speaker H.J. 570Major
- Mar 12Signed by the President S.J. 528Passed House
- Mar 11Senate Concurred in amendments , Passed, YEAS 20, NAYS 13 S.J. 521
- Vote recorded Concurred in amendments. Result: pass.Upper
- Mar 9House of Representatives Do Pass Amended , Passed, YEAS 42, NAYS 27 H.J. 539
- Vote recorded Do Pass Amended. Result: pass.Lower
- Mar 4State Affairs Do Pass Amended , Passed, YEAS 11, NAYS 2
- Vote recorded Do Pass Amended. Result: pass.Lower
- Mar 4State Affairs Motion to amend , Passed, Amendment 245FMajor
- Mar 4Scheduled for hearing H.J. 1
- Mar 2State Affairs Motion to amend , Passed, Amendment 245EMajor
- Mar 2Scheduled for hearing
- Feb 25First read in House and referred to House State Affairs H.J. 445Minor
- Feb 24Senate Do Pass , Passed, YEAS 32, NAYS 1 S.J. 387Passed Senate
- Vote recorded Do Pass. Result: pass.Upper
- Feb 23Certified uncontested, placed on consent , Passed, S.J. 31
- Vote recorded Do Pass. Result: pass.Upper
- Feb 23State Affairs Do Pass , Passed, YEAS 9, NAYS 0 S.J. 31Minor
- Feb 23Scheduled for hearing S.J. 1
- Feb 9Scheduled for hearing S.J. 1
- Feb 5First read in Senate and referred to Senate State Affairs S.J. 198Introduced
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