The bill amends South Dakota's tax classification laws regarding owner-occupied single-family dwellings. It clarifies that an owner-occupied single-family dwelling includes not only the primary residence but also all garages and ancillary structures related to the residential use of the dwelling, as well as the parcels of land on which these structures are situated. The bill maintains that a person can only have one dwelling classified as owner-occupied, which must be their principal place of residence. It also specifies that if the owner occupies fifty percent or more of the living space, the entire dwelling is classified as owner-occupied, while partial occupancy in multi-family units will result in only the occupied portion being classified as such.

Additionally, the bill outlines provisions for contractors constructing single-family dwellings intended for sale. Contractors can apply for a classification as owner-occupied single-family dwellings for a maximum of four properties, with stipulations that only unoccupied portions can be classified as owner-occupied. The bill also imposes a two-year limit on the classification for any dwelling under this section. Overall, the amendments aim to provide clearer guidelines for the classification of owner-occupied properties and their associated structures for tax purposes.

Statutes affected:
Introduced, 01/28/2026: 10-13-39, 10-13-45
Enrolled, 03/03/2026: 10-13-39, 10-13-45