This bill amends several sections of South Dakota law regarding the taxation of property owned by charitable, benevolent, or religious societies, particularly in relation to health care facilities. It specifically repeals the exemption for property used primarily for human health care and related purposes, which was previously tax-exempt if owned by a nonprofit organization recognized under section 501(c)(3) of the Internal Revenue Code. The bill also modifies the language in existing statutes to clarify that property owned by these organizations must be taxed if it is used primarily for revenue-generating purposes rather than for charitable or religious objectives.

Additionally, the bill updates the definitions and requirements for determining the taxable portion of properties owned by these organizations. It specifies that if a portion of the property is used for non-charitable purposes, that portion must be taxed accordingly. The appraised value of the property will be calculated based on the percentage of the property used for non-charitable purposes, ensuring that any revenue-generating activities are subject to taxation. Overall, the bill aims to close loopholes that allowed certain health care facilities to avoid taxation while clarifying the criteria for tax-exempt status.

Statutes affected:
Introduced, 01/29/2026: 10-1-47, 10-4-11, 10-4-12, 10-4-9.3, 10-4-35