This bill amends South Dakota law to increase the property tax exemption for disabled veterans and their surviving spouses. Specifically, it raises the exemption amount from two hundred thousand dollars to three hundred thousand dollars for the full and true value of a dwelling classified as owner-occupied. This exemption applies to veterans rated as permanently and totally disabled from a service-connected disability, as well as to the surviving spouses of such veterans or those receiving dependency and indemnity compensation due to the veteran's service-connected death. The bill also stipulates that the application for this exemption must be submitted on a form prescribed by the Department of Revenue, and that all application materials are confidential.

Additionally, the bill outlines the conditions under which the exemption remains valid. For both veterans and surviving spouses, the exemption is retained until the property ownership is transferred, the individual no longer occupies the dwelling, or there is a change in use of the property. It also allows for the possibility of petitioning the board of county commissioners for tax recalculations and refunds if the applicant misses the application deadlines. The amendments aim to provide greater financial relief to disabled veterans and their families by enhancing the existing property tax relief program.

Statutes affected:
Introduced, 01/24/2026: 10-4-40, 10-4-41
Senate Taxation Engrossed, 02/11/2026: 10-4-40, 10-4-41