SB 245

26.859.15  101st Legislative Session  245
                                    2026 South Dakota Legislature
                                                Senate Bill 245
                                                    ENROLLED
                                                AN ACT
ENTITLED An Act to create the homeowner property tax reduction fund, and to
         transfer moneys to the homeowner property tax reduction fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That a NEW SECTION be added to chapter 10-13:
            There is created in the state treasury the homeowner property tax reduction fund.
            The Department of Revenue shall administer the fund. The purpose of the fund is
   to provide property tax relief for owner-occupied single-family dwellings. Moneys in the
   fund must be used to reduce the local effort for general education levies on owner-
   occupied single-family dwellings.
            Interest on moneys credited to the fund must remain in the fund. Expenditures
   from the fund must be budgeted through the general appropriation bill.
            Moneys in the fund may not be transferred to the general fund.
Section 2. That a NEW SECTION be added to chapter 10-13:
            The treasurer shall deposit in the homeowner property tax reduction fund
   established in section 1 of this Act, the applicable percent of taxes collected on or after
   August 1, 2027, pursuant to:
   (1)      Chapter 10-45;
   (2)      Chapter 10-46;
   (3)      Chapter 10-46E; and
   (4)      Chapter 10-58.
            For purposes of this section, "applicable percent" means three-tenths percent
   divided by the tax rate provided for the taxes referenced in subdivisions (1) to (4),
   inclusive, of this section, as applicable.
Section 3. That § 10-46-48 be AMENDED:
26.859.15  2  245
            10-46-48. All revenue arising under the operation of this chapter shall
   immediately be turned over to the state treasurer and by him credited to the general fund,
   except as otherwise provided in section 2 of this Act.
Section 4. That § 10-46E-9 be AMENDED:
            10-46E-9. The revenue from the tax imposed by this chapter shall be deposited
   in the general fund, except as otherwise provided in section 2 of this Act.
Section 5. That § 10-58-5 be AMENDED:
            10-58-5. The tax generated by this chapter must be deposited in the general fund,
   except as otherwise provided in section 2 of this Act.
Section 6. On July 1, 2026, the state treasurer shall transfer $55,896,576 from the general
revenue replacement fund to the homeowner property tax reduction fund.
Section 7. Sections 2 to 5, inclusive, of this Act are effective beginning July 1, 2027.
SB245 ENROLLED
26.859.15  3  245
An Act to create the homeowner property tax reduction fund, and to transfer moneys to the
homeowner property tax reduction fund.
                                                     Received at this Executive Office
 I certify that the attached Act originated in       this _____ day of _____________,
 the:
                                                     2026 at ____________M.
 Senate as Bill No. 245
                                                     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. 245  By
 File No. ____  Asst. Secretary of State
 Chapter No. ______
SB245 ENROLLED