This bill amends existing South Dakota property tax laws to provide tax relief for disabled veterans and their surviving spouses. Specifically, it allows for a property tax exemption of up to $200,000 of the full value of a dwelling classified as owner-occupied for veterans rated as permanently and totally disabled due to a service-connected disability, as well as for surviving spouses of such veterans. The bill stipulates that these individuals must apply for the exemption using a form prescribed by the secretary of revenue, and any application or supporting documents will be kept confidential. If they miss the application deadline, they can petition the board of county commissioners to recalculate their taxes, and if they meet all eligibility requirements except for the deadline, the board is required to abate or refund the difference in taxes accumulated over the previous four years.

Additionally, the bill modifies the criteria under which the board of county commissioners can abate or refund property taxes. It introduces a new provision that allows for tax refunds if a person qualifies for the property tax exemption under sections 10-4-40 or 10-4-41 but failed to meet the application deadline. The bill also clarifies that exemptions remain in effect until property ownership is transferred, the individual no longer occupies the dwelling, or there is a change in use. Overall, the amendments aim to enhance tax relief for veterans and their families while ensuring that the process for obtaining such relief is accessible and fair.

Statutes affected:
Introduced, 01/28/2026: 10-4-40, 10-4-41, 10-18-1