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26.859.15 101st Legislative Session 245
2026 South Dakota Legislature
Senate Bill 245
ENROLLED
AN ACT
ENTITLED An Act to create the homeowner property tax reduction fund, and to
transfer moneys to the homeowner property tax reduction fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That a NEW SECTION be added to chapter 10-13:
There is created in the state treasury the homeowner property tax reduction fund.
The Department of Revenue shall administer the fund. The purpose of the fund is
to provide property tax relief for owner -occupied single-family dwellings. Moneys in the
fund must be used to reduce the local effort for general education levies on owner -
occupied single-family dwellings.
Interest on moneys credited to the fund must remain in the fund. Expenditures
from the fund must be budgeted through the general appropriation bill.
Moneys in the fund may not be transferred to the general fund.
Section 2. That a NEW SECTION be added to chapter 10-13:
The treasurer shall deposit in the homeowner property tax reduction fund
established in section 1 of this Act, the applicable percent of taxes collected on or after
August 1, 2027, pursuant to:
(1) Chapter 10-45;
(2) Chapter 10-46;
(3) Chapter 10-46E; and
(4) Chapter 10-58.
For purposes of this section, "applicable percent" means three -tenths percent
divided by the tax rate provided for the taxes referenced in subdivisions (1) to (4),
inclusive, of this section, as applicable.
Section 3. That § 10-46-48 be AMENDED:
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SB245 ENROLLED
10-46-48. All revenue arising under the operation of this chapter shall
immediately be turned over to the state treasurer and by him credited to the general fund,
except as otherwise provided in section 2 of this Act.
Section 4. That § 10-46E-9 be AMENDED:
10-46E-9. The revenue from the tax imposed by this chapter shall be deposited
in the general fund, except as otherwise provided in section 2 of this Act.
Section 5. That § 10-58-5 be AMENDED:
10-58-5. The tax generated by this chapter must be deposited in the general fund,
except as otherwise provided in section 2 of this Act.
Section 6. On July 1, 2026, the state treasurer shall transfer $55,896,576 from the general
revenue replacement fund to the homeowner property tax reduction fund.
Section 7. Sections 2 to 5, inclusive, of this Act are effective beginning July 1, 2027.
26.859.15 3 245
SB245 ENROLLED
An Act to create the homeowner property tax reduction fund, and to transfer moneys to the
homeowner property tax reduction fund.
I certify that the attached Act originated in
the:
Senate as Bill No. 245
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. 245
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