The bill establishes a new Property Tax Relief Fund within the state treasury, which will be funded by transfers from the general fund. The Department of Revenue is designated to administer this fund, which aims to supplement property tax levies for political subdivisions in South Dakota, thereby reducing the property taxes imposed on real property. The fund will accrue interest, and any expenditures from it will require a special appropriation from the Legislature.

To fund the Property Tax Relief Fund, the bill mandates that by August 1, 2026, the state treasurer must transfer 25% of the annual increase in general fund revenues from the 2026 fiscal year compared to the 2025 fiscal year. For subsequent years, the treasurer will continue to transfer the previous year's deposit along with 25% of any annual increase in general fund revenues from the prior fiscal year. If there is no increase in general fund revenues, the transfer will consist solely of the previous year's deposit.