The bill amends South Dakota's tax classification for owner-occupied single-family dwellings to clarify that multiple garages and ancillary structures related to the residential use of the dwelling by the owner are included in this classification. Specifically, it removes the previous language that limited the classification to a single structure and its attached or unattached garage, and instead states that all garages and related structures are part of the owner-occupied single-family dwelling. Additionally, the bill specifies that the parcels of land upon which these garages or structures are situated are also included in the classification.

Furthermore, the bill outlines the eligibility criteria for contractors constructing single-family dwellings intended for sale as owner-occupied. It allows contractors to apply for a specific tax classification for up to four dwellings, provided they comply with the same application provisions as owner-occupants. The bill also establishes that no dwelling can be classified as an owner-occupied single-family dwelling for more than two consecutive years if it has been occupied at any point. This aims to ensure that the classification is reserved for genuine owner-occupied residences.

Statutes affected:
Introduced, 01/28/2026: 10-13-39, 10-13-45