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SD SB243
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Heather Baxter
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AI Summary
- Imposes a new per-transaction tax on all retail sales subject to South Dakota's existing sales tax: $1.50 per transaction with a final purchase price of $15 or more, or 10% of the purchase price for transactions under $15
- Creates a "property tax replacement fund" in the state treasury to collect all revenues from the new transaction tax, administered by the Department of Revenue and continuously appropriated for distribution to political subdivisions
- Directs fund revenues to reduce property taxes in a prioritized order: first eliminate levies on owner-occupied single-family dwellings, then agricultural property, then nonagricultural property, with reductions applied in equal proportions across all counties
- Requires county auditors to certify total property taxes imposed by category to the Department of Revenue, which then calculates and directs the corresponding levy reductions for the upcoming tax year
- Establishes penalties for noncompliance: failure to pay the transaction tax within 60 days is a Class 1 misdemeanor, and filing a false return to evade the tax is a Class 6 felony
Legislative Description
Impose a transaction tax and dedicate revenues collected to supplant certain property taxes, and to provide a penalty therefor.
Property Tax
Last Action
Taxation Deferred to the 41st legislative day, Passed, YEAS 4, NAYS 3. S.J. 17
2/20/2026
Committee Referrals
Taxation2/4/2026
Full Bill Text
No bill text available