This bill amends existing South Dakota laws regarding property tax exemptions for disabled veterans and their surviving spouses. Specifically, it modifies sections 10-4-40 and 10-4-41 to clarify that a $200,000 exemption from property taxation applies to dwellings owned and occupied by veterans rated as permanently and totally disabled due to service-connected disabilities, as well as to surviving spouses of such veterans. The bill allows these individuals to apply for the exemption using a form prescribed by the secretary of revenue, and it ensures that any application or supporting documents remain confidential. Additionally, it provides a mechanism for veterans and surviving spouses who miss application deadlines to petition the board of county commissioners for tax recalculations and potential refunds or abatements for up to four years.

Furthermore, the bill amends section 10-18-1 to include provisions for tax abatement or refunds for individuals who qualify for the property tax exemptions under sections 10-4-40 or 10-4-41 but fail to meet the application deadlines. This ensures that eligible veterans and surviving spouses are not penalized for missing deadlines due to circumstances beyond their control. The bill also stipulates that the exemptions remain in effect until certain conditions are met, such as property ownership transfer or changes in occupancy. Overall, the legislation aims to enhance property tax relief for disabled veterans and their families while providing clear guidelines for application and eligibility.

Statutes affected:
Introduced, 01/28/2026: 10-4-40, 10-4-41, 10-18-1
House Taxation Engrossed, 02/10/2026: 10-4-40, 10-4-41, 10-18-1
House Engrossed, 02/13/2026: 10-4-40, 10-4-41, 10-18-1
Enrolled, 03/03/2026: 10-4-40, 10-4-41, 10-18-1