This bill establishes a new Homeowner Tax Reduction Fund within the state treasury of South Dakota, aimed at providing property tax rebates for owner-occupied single-family dwellings. The fund will receive annual deposits from the state treasurer, amounting to either one hundred million dollars or a specified percentage of taxes collected from various chapters of state tax law, including Chapters 10-45, 10-46, 10-46E, 10-58, and 32-5B-20. The Department of Revenue will oversee the fund, ensuring that interest accrued remains within the fund and that expenditures are budgeted through the general appropriation bill. Notably, funds from this account cannot be transferred to the general fund.

Additionally, the bill amends existing laws to clarify that revenue from certain taxes, which would typically be directed to the general fund, will instead contribute to the Homeowner Tax Reduction Fund as specified in the new section. This includes amendments to sections 10-46-48, 10-46E-9, and 10-58-5, which now include provisions stating that these revenues will be allocated to the new fund rather than the general fund. The bill is set to take effect on July 1, 2027.

Statutes affected:
Introduced, 01/23/2026: 10-46-48, 10-46E-9, 10-58-5