clarify the eligibility of multiple garages or structures to be classified as owner-occupied.

26.907.19 101st Legislative Session 154

2026 South Dakota Legislature
Senate Bill 154
ENROLLED

AN ACT

ENTITLED An Act to clarify the eligibility of multiple garages or structures to be
classified as owner-occupied.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-13-39 be AMENDED:
10-13-39. Each owner-occupied single-family dwelling in this state is specifically
classified for the purpose of taxation. For the purposes of this section, an owner-occupied
single-family dwelling is a house, condominium apartment, residential housing consisting
of four or less family units, town house, town home, housing cooperatives where
membership in the cooperative is strictly limited to stockholder occupants of the building,
dwelling as classified in § 10-13-39.1, and manufactured or mobile home as defined in
§ 32-3-1, which is assessed and taxed as a separate unit. An owner-occupied single-family
dwelling includes all garages and ancillary structures related to the residential use of the
dwelling by the owner, and the parcels of land upon which the garages or structur es are
situated, as recorded in the records of the director of equalization.
A person may only have one dwelling, which is the person's principal place of
residence as defined in § 12-1-4, classified as an owner -occupied single-family dwelling.
If the owner occupies fifty percent or more of the living space within the dwelling, the
entire dwelling is classified as an owner -occupied single -family dwelling. If the owner
occupies a duplex, triplex, or fourplex, or less than fifty percent of the living space within
the dwelling, the portion of the dwelling so occupied must be classified as an owner -
occupied single-family dwelling.
Section 2. That § 10-13-45 be AMENDED:
10-13-45. Any contractor that has constructed or is constructing a single -family
dwelling, as defined in § 10-13-39, for the purpose of selling the dwelling to be occupied
as a single-family dwelling may apply to have the property specifically classified for the
26.907.19 2 154
SB154 ENROLLED
purpose of taxation pursuant to §§ 10-13-39 to 10-13-40.3, inclusive, as an owner -
occupied single-family dwelling.
A contractor may only have a maximum of four dwellings classified as owner -
occupied single-family dwellings. If any portion of the space is or has been occupied, only
the portion of the dwelling not currently or previously occupied shall be classified as a n
owner-occupied single-family dwelling. The contractor shall comply with the application
provisions imposed on the owner -occupant pursuant to §§ 10-13-39 to 10-13-40.3,
inclusive. No dwelling, pursuant to this section, may be classified as an owner -occupied
single-family dwelling for more than two consecutive years.
26.907.19 3 154
SB154 ENROLLED
An Act to clarify the eligibility of multiple garages or structures to be classified as owner -
occupied.

I certify that the attached Act originated in
the:

Senate as Bill No. 154

Secretary of the Senate

President of the Senate

Attest:

Secretary of the Senate

Speaker of the House

Attest:

Chief Clerk of the House

Senate Bill No. 154
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