This bill introduces a transaction tax in South Dakota, with the revenue generated dedicated to reducing property taxes across various categories, including owner-occupied single-family dwellings, agricultural property, and nonagricultural property. The bill mandates that county auditors certify the total amount of property taxes imposed within their counties, which the Department of Revenue will use to determine the distribution of funds aimed at reducing property tax levies. The tax structure includes a flat fee of $1.50 for retail transactions with a final purchase price of $15 or more, and a 10% tax for transactions under that amount.

Additionally, the bill establishes a property tax replacement fund to manage the collected revenues, which will be continuously appropriated to the Department of Revenue for distribution to political subdivisions for their expenses. It also outlines penalties for non-compliance, including a Class 1 misdemeanor for failing to pay the tax within 60 days and a Class 6 felony for filing a false return. Amendments to existing laws clarify that the new tax can be listed separately on contracts and invoices, ensuring transparency in billing.

Statutes affected:
Introduced, 02/04/2026: 10-46A-12, 10-46B-10, 10-52-1.1, 10-59-1