South Dakota 2026 Regular Session

South Dakota Senate Bill SB118

Introduced

1/26/26

Refer

1/26/26

Report Pass

2/6/26

Report Pass

2/24/26

Caption

Deposit certain tax revenues into a homeowner tax reduction fund.

Impact

The implementation of SB118 is expected to change the financial dynamics of tax revenues collected from specific chapters related to sales and excise taxes. By designating a portion of these revenues to directly benefit homeowners, the bill reflects a shift in legislative priorities toward supporting residential tax reduction as a means of economic relief. This could potentially lead to a decline in general fund revenues, necessitating careful management of state finances.

Summary

Senate Bill 118 aims to deposit a specified amount of tax revenue into a newly established homeowner tax reduction fund in South Dakota. The bill mandates that by January 31st of each year, the state treasurer will transfer either one hundred million dollars or a calculated percentage of taxes collected in the previous year from various tax chapters into this fund. This fund is intended to provide financial relief to homeowners by reducing their tax burden, thus impacting how homeowner taxes will be managed at the state level.

Sentiment

The sentiment surrounding SB118 appears to be generally positive among proponents who see it as a necessary measure to alleviate the financial pressures faced by homeowners. Advocates argue that such measures are crucial, particularly in times of economic uncertainty, while critics worry about the implications for state funding and the potential difficulty in balancing the budget without the targeted revenues.

Contention

While the bill has received support for its intention to assist homeowners, it also faces contention regarding the implications for the overall state budget. Opponents express concerns that reallocating funds in this manner could weaken the general fund, thereby limiting resources available for other essential services. The need for careful fiscal planning and potential adjustments to future budgets are central points in the discussions surrounding SB118.

Companion Bills

No companion bills found.

Previously Filed As

SD SB46

Specify the funds into which certain boat fees are deposited.

SD SB155

Reduce the amount of net receipts of unclaimed property deposited into the general fund.

SD SB121

Reduce maximum values for certain property taxes levied on owner-occupied single-family dwellings, and to increase the rates for certain gross receipts taxes and use taxes.

SD HB1081

Revise the disposition of revenues from the precious metals severance tax.

SD HB1019

Eliminate certain property taxes levied on owner-occupied single-family dwellings, and to increase certain gross receipts tax rates and use tax rates.

SD HB1235

Reduce a limit on the annual increases of property tax revenues payable to certain taxing districts, and to subject school districts to a limit on property taxes collected in a year.

SD HB1138

Reduce a maximum property tax mill levy on owner-occupied single-family dwellings for school district general funds, and to repeal certain sales tax exemptions.

SD SB207

Freeze property tax revenues and assessments for two years.

SD HB1136

Repeal the alternate realty improvement contractor's excise tax.

SD SB216

Reduce the growth in the assessed value of owner-occupied property, limit increases in certain property tax revenues, revise provisions regarding school district excess tax levies, and revise eligibility requirements for a property tax assessment freeze.

Similar Bills

No similar bills found.