repeal an exemption for certain health care facilities.

26.799.13 101st Legislative Session 161

2026 South Dakota Legislature
Senate Bill 161

Introduced by: Senator Pischke

Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to repeal an exemption for certain health care facilities. 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2
Section 1. That § 10-1-47 be AMENDED: 3
10-1-47. The terms "United States Internal Revenue Code" and "Internal Revenue 4
Code" mean the United States Internal Revenue Code as amended and in effect on January 5
1, 2025. This section applies to §§ 10-4-9.1, 10-4-9.2, 10-4-9.3, 10-4-9.4, 10-4-39, 10-6
6-157, and 10-43-10.1, and subdivisions 10-6A-1(7), 10-6B-1(5), 10-18A-1(6), 10-43-7
10.3(6), and 10-45A-1(5). 8
Section 2. That § 10-4-11 be AMENDED: 9
10-4-11. If any property owned by any society or institution described in §§ 10-10
4-9 to 10-4-9.3 10-4-9.2, inclusive, shall consist consists of hotel or residence property, 11
or any other class of retail business and such the property is used or owned primarily for 12
the purposes of revenue, and not for the primary object of such charitable, benevolent, 13
or religious society, it shall must be taxed as other property of the same class is taxed. 14
Section 3. That § 10-4-12 be AMENDED: 15
10-4-12. If property owned by any health care organization or charitable, 16
benevolent, or religious society described in § 10-4-9.4 and §§ 10-4-9 to 10-4-9.3 10-4-17
9.4, inclusive, other than agricultural land, is used partly by such health care organization 18
or the charitable, benevolent, or religious society for health care, charitable, benevolent, 19
or religious purposes, and the remaining part is occupied, rented, or used for other than 20
health care, charitable, benevolent, or religious purposes, the portion of property that is 21
so occupied, rented, or used for other purposes, shall must be taxed as other property of 22
the same class is taxed. 23
26.799.13 2 161
Underscores indicate new language.
Overstrikes indicate deleted language.
For the purpose of determining the value of the taxable portion of the property, 1
the appraised value of the entire property shall be is multiplied by the percentage of the 2
entire property used for other than health care, charitable, benevolent, or religious 3
purposes. The resulting value shall be is multiplied by the percentage of time the property 4
is used for other than health care, charitable, benevolent, or religious purposes. The 5
resulting value shall be is the assessed value for taxation purposes. 6
Section 4. That § 10-4-9.3 be REPEALED. 7
Property owned by any corporation, organization, or society and used primarily for 8
human health care and health care related purposes is exempt from taxation. Such 9
corporation, organization, or society shall be nonprofit and recognized as an exempt 10
organization under section 501(c)(3) of the United States Internal Revenue Code, as 11
defined by § 10-1-47, and none of its assets may be available to any private interest. The 12
property shall be a health care facility licensed pursuant to chapter 34-12, orphanage, 13
mental health center or community support provider regulated under chapter 27A-5, or 14
camp. The facility shall admit all persons for treatment consistent with the facility's ability 15
to provide health care services required by the patient until the facility is filled to its 16
ordinary capacity and conform to all applicable regulations of and permit inspections by 17
the state as otherwise provided by law. 18
Section 5. That § 10-4-35 be REPEALED. 19
For the purposes of § 10-4-9.3, a "wellness center" is a health care facility if it links 20
on- and off-site medical consultants with physical activity staff and programs of health 21
and fitness facilities, can and does provide fitness testing and prescription exercise tailored 22
to specific individual needs and capabilities, and the property is used for rehabilitation 23
services or prescriptive exercise. For the purposes of § 10-4-12, the taxable percentage 24
of a wellness center shall be determined by computing the percentage of the total 25
membership that do not use the facility for physician prescribed rehabilitation or 26
prescriptive exercise. 27