South Dakota Senate Bill SB96

South Dakota 2026 Regular Session

• Introduced: 1/20/26
• Refer: 1/20/26
• Report Pass: 2/18/26
• Engrossed: 2/23/26
• Refer: 2/25/26
• Report Pass: 3/4/26
• Enrolled: 3/5/26
• Passed: 3/30/26

Caption

Authorize the imposition of a county option gross receipts tax to reduce owner-occupied property taxes.

Impact

The bill is set to amend existing tax laws in South Dakota by introducing the option for counties to charge up to a half percent on gross receipts from tangible personal property sales and certain services. This new tax would not only provide an avenue for localities to manage their financing but also offers residents potential relief on their property taxes. The sums collected via this tax would be channeled into a specific fund dedicated to reducing owner-occupied housing taxes, thereby directly impacting residential taxation while encouraging local financial autonomy.

Summary

Senate Bill 96 is an act proposed to empower counties in South Dakota to impose a gross receipts tax, with the primary goal of reducing property taxes on owner-occupied properties. The legislation aims to provide counties with a funding mechanism that allows local governments to generate revenue that would contribute to property tax relief for residents. Through the implementation of this tax, counties are expected to gather funds that are required to be allocated directly to a property tax reduction fund.

Sentiment

Reactions to SB96 are varied. Supporters argue it offers much-needed financial relief to property owners while empowering local jurisdictions with the ability to raise necessary funds for community needs. However, there are concerns among some legislators about the implications of imposing additional taxes, particularly in communities that may be struggling economically. The sentiment around the bill is polarized, with significant advocacy for local control and opposition rooted in worries about overburdening residents with more taxes.

Contention

Notable points of contention arise around the imposition of the gross receipts tax itself and how the exceptions for tax exemptions will be controlled. Some legislators are worried about the fairness of such a tax, particularly in its potential to affect small businesses and lower-income households. Additionally, the manner in which the tax is collected, reported, and utilized poses further debate among policymakers, underscoring a larger conversation about fiscal responsibility and equitable taxation in local governance.