This bill authorizes counties in South Dakota to impose a gross receipts tax of up to one-half percent on the gross receipts from sales of tangible personal property, electronically transferred products, and taxable services. The revenue generated from this tax will be deposited into a property tax reduction fund, which is specifically designated to provide tax relief for owner-occupied properties. The governing body of each county must adopt an ordinance to implement this tax, which can also be referred to a public vote for approval. Additionally, the bill outlines the procedures for the administration and collection of the tax by the Department of Revenue.

Key amendments to existing laws include the requirement for property tax bills to reflect any property tax credits applied due to the gross receipts tax starting in 2028, and the establishment of a special county gross receipts tax fund to manage the collected revenues. The bill also specifies that the gross receipts tax will not apply to materials incorporated in construction contracts that were bid or entered into before the tax's effective date. Overall, the legislation aims to provide a mechanism for counties to alleviate property tax burdens on homeowners while ensuring transparency and accountability in the tax collection process.

Statutes affected:
Introduced, 01/16/2026: 10-21-1.1, 10-46A-12, 10-46B-10, 10-52-1.1, 10-59-1
Senate Engrossed, 02/24/2026: 10-21-1.1, 10-46A-12, 10-46B-10, 10-52-1.1, 10-59-1
Enrolled, 03/09/2026: 10-21-1.1, 10-46A-12, 10-46B-10, 10-52-1.1, 10-59-1