increase the amount of value exempt from property taxes under a tax relief program for disabled veterans and surviving spouses.

26.675.12 101st Legislative Session 126

2026 South Dakota Legislature
Senate Bill 126
SENATE TAXATION ENGROSSED

Introduced by: Senator Hohn

Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to increase the amount of value exempt from property taxes under a tax 1
relief program for disabled veterans and surviving spouses. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 10-4-40 be AMENDED: 4
10-4-40. Two Three hundred thousand dollars of the full and true value of the 5
total amount of a dwelling, or portion thereof , classified as owner -occupied pursuant to 6
§§ 10-13-39 to 10-13-40.4, inclusive, that is owned and occupied by a veteran who is 7
rated as permanently and totally disabled from a service -connected disability, is exempt 8
from property taxation. The veteran shall apply for this partial exemption on a form 9
prescribed by the secretary of revenue the Department of Revenue . Any application or 10
supporting document for this exemption is confidential. Any A veteran who would 11
otherwise qualify for this exemption but fails to comply with the application deadline for 12
the owner-occupied classification or the deadline for application for this exemption may 13
petition the board of county commissioners to recalculate the taxes based upon the owner-14
occupied classification and this exemption and abate or refund the difference in taxes 15
pursuant to chapter 10-18. 16
If the director of equalization determines that the veteran receives an exemption 17
for the veteran's dwelling pursuant to this section, the veteran retains that the exemption 18
until the property ownership is transferred, the veteran does not occupy the dwelling, or 19
the property has a change in use. If the legal description of property is changed or 20
amended and the veteran continues to reside in the dwelling, the veteran retains the 21
exemption provided by this section. 22
Section 2. That § 10-4-41 be AMENDED: 23
10-4-41. Two Three hundred thousand dollars of the full and true value of the 24
total amount of a dwelling, or portion thereof, classified as owner -occupied pursuant to 25
26.675.12 2 126
Underscores indicate new language.
Overstrikes indicate deleted language.
§§ 10-13-39 to 10-13-40.4, inclusive, is exempt from property taxation if owned and 1
occupied by: 2
(1) The surviving spouse of a veteran who was rated as permanently and totally 3
disabled from a service-connected disability; or 4
(2) The surviving spouse of a veteran, who receives dependency and indemnity 5
compensation from the United States Department of Veterans Affairs as a result of 6
the veteran's service-connected death. 7
The surviving spouse shall apply for this partial exemption on a form prescribed by 8
the secretary of revenue. Any the Department of Revenue. The application or and 9
supporting document for this exemption is confidential. Any A surviving spouse who would 10
otherwise qualify for this exemption but fails to comply with the application deadline for 11
the owner-occupied classification or the deadline for application for this exemption may 12
petition the board of county commissioners to recalculate the taxes based upon the owner-13
occupied classification and this exemption and abate or refund the difference in taxes 14
pursuant to chapter 10-18. 15
If the director of equalization determines that the surviving spouse receives an 16
exemption for the dwelling pursuant to this section, the surviving spouse retains that the 17
exemption until the property ownership is transferred, the surviving spouse does not 18
occupy the dwelling, the surviving spouse remarries, or the property has a change in use. 19
If the legal description of property is changed or amended and the surviving spouse 20
continues to reside in the dwelling, the surviving spouse retains the exemption provided 21
by this section. 22