SB 154

26.907.19  101st Legislative Session  154
                                   2026 South Dakota Legislature
                                             Senate Bill 154
                                                   ENROLLED
                                             AN ACT
ENTITLED An Act to clarify the eligibility of multiple garages or structures to be
       classified as owner-occupied.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-13-39 be AMENDED:
            10-13-39. Each owner-occupied single-family dwelling in this state is specifically
   classified for the purpose of taxation. For the purposes of this section, an owner-occupied
   single-family dwelling is a house, condominium apartment, residential housing consisting
   of four or less family units, town house, town home, housing cooperatives where
   membership in the cooperative is strictly limited to stockholder occupants of the building,
   dwelling as classified in § 10-13-39.1, and manufactured or mobile home as defined in
   § 32-3-1, which is assessed and taxed as a separate unit. An owner-occupied single-family
   dwelling includes all garages and ancillary structures related to the residential use of the
   dwelling by the owner, and the parcels of land upon which the garages or structures are
   situated, as recorded in the records of the director of equalization.
            A person may only have one dwelling, which is the person's principal place of
   residence as defined in § 12-1-4, classified as an owner-occupied single-family dwelling.
   If the owner occupies fifty percent or more of the living space within the dwelling, the
   entire dwelling is classified as an owner-occupied single-family dwelling. If the owner
   occupies a duplex, triplex, or fourplex, or less than fifty percent of the living space within
   the dwelling, the portion of the dwelling so occupied must be classified as an owner-
   occupied single-family dwelling.
Section 2. That § 10-13-45 be AMENDED:
            10-13-45. Any contractor that has constructed or is constructing a single-family
   dwelling, as defined in § 10-13-39, for the purpose of selling the dwelling to be occupied
   as a single-family dwelling may apply to have the property specifically classified for the
26.907.19  2  154
   purpose of taxation pursuant to §§ 10-13-39 to 10-13-40.3, inclusive, as an owner-
   occupied single-family dwelling.
            A contractor may only have a maximum of four dwellings classified as owner-
   occupied single-family dwellings. If any portion of the space is or has been occupied, only
   the portion of the dwelling not currently or previously occupied shall be classified as an
   owner-occupied single-family dwelling. The contractor shall comply with the application
   provisions imposed on the owner-occupant pursuant to §§ 10-13-39 to 10-13-40.3,
   inclusive. No dwelling, pursuant to this section, may be classified as an owner-occupied
   single-family dwelling for more than two consecutive years.
SB154 ENROLLED
26.907.19  3  154
An Act to clarify the eligibility of multiple garages or structures to be classified as owner-
occupied.
                                                     Received at this Executive Office
 I certify that the attached Act originated in       this _____ day of _____________,
 the:
                                                     2026 at ____________M.
 Senate as Bill No. 154
                                                     By
                       Secretary of the Senate  for the Governor
                                                                      The attached Act is hereby
                                                                  approved this ________ day of
                       President of the Senate  ______________, A.D., 2026
 Attest:
                                                                                        Governor
                       Secretary of the Senate
                                                     STATE OF SOUTH DAKOTA,
                                                                                               ss.
                                                     Office of the Secretary of State
                          Speaker of the House
                                                                    Filed ____________, 2026
 Attest:  at _________ o'clock __M.
                     Chief Clerk of the House  Secretary of State
 Senate Bill No. 154  By
 File No. ____  Asst. Secretary of State
 Chapter No. ______
SB154 ENROLLED