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26.342.21 101st Legislative Session 1193
2026 South Dakota Legislature
House Bill 1193
ENROLLED
AN ACT
ENTITLED An Act to modify the provisions for a refund of taxes to disabled veterans
and surviving spouses under certain property tax relief programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-4-40 be AMENDED:
10-4-40. Two hundred thousand dollars of the full and true value of the total
amount of a dwelling or portion thereof classified as owner -occupied pursuant to §§ 10-
13-39 to 10-13-40.4, inclusive, which is owned and occupied by a veteran who is rated as
permanently and totally disabled from a service -connected disability, is exempt from
property taxation. The veteran shall apply for this partial exemption on a form prescribed
by the secretary of revenue. Any application or supporting document for this exemption
is confidential.
Any veteran who would otherwise qualify for this exemption but fails to comply
with the application deadline for the owner -occupied classification or the deadline for
application for this exemption may petition the board of county commissioners to
recalculate the taxes based upon the owner -occupied classification and this exemption,
and the board may abate or refund the difference in taxes in the same manner set forth
in chapter 10-18.
If the veteran meets all eligibility requirements for this exemption except for the
application deadline due to a pending claim for a permanent and total disability rating
through the United States Department of Veteran Affairs, the board must abate or refund
the difference in taxes accumulated since the effective date of the claim, but not exceeding
the previous four years. The abatement or refund of taxes must be made in accordance
with chapter 10-18.
If the director of equalization determines that the veteran receives an exemption
for the veteran's dwelling pursuant to this section, the veteran retains that exemption
until the property ownership is transferred, the veteran does not occupy the dwelling, or
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the property has a change in use. If the legal description of property is changed or
amended and the veteran continues to reside in the dwelling, the veteran retains the
exemption provided by this section.
Section 2. That § 10-4-41 be AMENDED:
10-4-41. Two hundred thousand dollars of the full and true value of the total
amount of a dwelling, or portion thereof, classified as owner-occupied pursuant to §§ 10-
13-39 to 10-13-40.4, inclusive, is exempt from property taxation if owned and occupied
by:
(1) The surviving spouse of a veteran who was rated as permanently and totally
disabled from a service-connected disability; or
(2) The surviving spouse of a veteran, who receives dependency and indemnity
compensation from the United States Department of Veterans Affairs as a result of
the veteran's service-connected death.
The surviving spouse shall apply for this partial exemption on a form prescribed by
the secretary of revenue. Any application or supporting document for this exemption is
confidential.
Any surviving spouse who would otherwise qualify for this exemption but fails to
comply with the application deadline for the owner-occupied classification or the deadline
for application for this exemption may petition the board of county commissioners to
recalculate the taxes based upon the owner-occupied classification and this exemption. If
the surviving spouse meets all eligibility requirements for this exemption except for the
application deadline, the board may abate or refund the difference in taxes accumulated
over a period not exceeding the previous four years, pursuant to chapter 10-18.
If the director of equalization determines that the surviving spouse receives an
exemption for the dwelling pursuant to this section, the surviving spouse retains that
exemption until the property ownership is transferred, the surviving spouse does not
occupy the dwelling, the surviving spouse remarries, or the property has a change in use.
If the legal description of property is changed or amended and the surviving spouse
continues to reside in the dwelling, the surviving spouse retains the exemption provi ded
by this section.
Section 3. That § 10-18-1 be AMENDED:
10-18-1. Unless otherwise provided, if a person, against whom an assessment has
been made or a tax levied, claims that the assessment or tax or any part of the assessment
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or tax is invalid for any reason provided in this section, the assessment or tax may be
abated, or the tax refunded if paid. The board of county commissioners may abate or
refund, in whole or in part, the invalid assessment or tax in the following cases on ly:
(1) If an error has been made in any identifying entry or description of the real
property, in entering the valuation of the real property or in the extension of the
tax, to the injury of the complainant;
(2) If improvements on any real property were considered or included in the valuation
of the real property, which did not exist on the real property at the time fixed by
law for making the assessment;
(3) If the complainant or the property is exempt from the tax;
(4) If the complainant had no taxable interest in the property assessed against the
complainant at the time fixed by law for making the assessments;
(5) If taxes have been erroneously paid or error made in noting payment or issuing
receipt for the taxes paid;
(6) If the same property has been assessed against the complainant more than once
in the same year, and the complainant produces satisfactory evidence that the tax
for the year has been paid; or
(7) A person qualifies for the property tax exemption under § 10-4-40 or 10-4-41, but
failed to comply with the application deadline.
No tax may be abated on any real property that has been sold for taxes, while a
tax certificate is outstanding.
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An Act to modify the provisions for a refund of taxes to disabled veterans and surviving
spouses under certain property tax relief programs.
I certify that the attached Act originated in
the:
House as Bill No. 1193
Chief Clerk of the House
Speaker of the House
Attest:
Chief Clerk of the House
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1193
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2026 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2026
Governor
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________, 2026
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State