SB99

Dead

Create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.

Senate BillJim Mehlhaff(R)Introduced Jan 20, 2026Last action Jan 28, 2026

South Dakota is creating a new fund to replace property tax revenue by increasing sales and use tax rates on certain gross receipts, while reducing school district property taxes on owner-occupied homes to zero and lowering the overall school property tax levy. The bill eliminates homeowners' school property tax bills starting in 2027 and adjusts agricultural and general property tax rates to compensate for the revenue loss through higher state sales and use taxes.

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Changes to Existing Law

History (4)

Jan 28, 2026S
Taxation Deferred to the 41st legislative day Passed, YEAS 6, NAYS 1. S.J. 5
Jan 28, 2026S
Taxation Motion to amend S.J. 5
Jan 28, 2026S
Taxation Scheduled for hearing
Jan 20, 2026S
First read in Senate and referred to Senate Taxation S.J. 67