South Dakota2026Active
HB1245
Local Tax for City Building Projects
Last scannedAug 25, 2026, 3:29 AM
In one sentence
This law lets cities in South Dakota create a new tax to pay for building and fixing public property if voters approve it.
What it does
- Requires municipalities to form a five-member board to review plans for the new tax before they go to voters.
- Allows municipalities to charge up to one percent on sales as a gross receipts tax.
- Mandates that at least sixty percent of voting residents must support the tax in an election.
- Limits how money from this tax can be spent, such as buying land or building roads owned by the city.
- Sets rules for when the tax starts and ends based on time limits or funding goals.
Who it affects
- Cities that want to build new public projects
- Residents who vote on whether to start the tax
- Businesses in cities where this tax is approved
Limits and unknowns
- Cities cannot start this tax if they collected money from the same type of tax in the last two years.
- The law does not say exactly when it takes effect because that date is blank in the official text.
- This rule only applies to cities, not counties or school districts directly.
Plain language
Terms to know
- Gross receipts tax
- A fee charged based on the total amount of money a business collects from sales.
- Capital improvement board
- A group of five people who review and approve plans for city building projects before voters decide.
Official record
Sources
Official summary
authorize municipalities to establish a local funding mechanism for capital improvement projects.
Official activity
Bill history
- Signed by the Governor