Bill > SB199

This bill establishes a new "property tax relief fund" within the state treasury, to be managed by the Department of Revenue, with the goal of reducing property taxes on real property by supplementing the tax levies of local government entities, known as political subdivisions. Funds for this relief will be transferred from the state's general fund, which is the main operating fund for government services. Specifically, by August 1, 2026, the state treasurer will move 25% of the increase in general fund money from fiscal year 2025 to fiscal year 2026 into this new relief fund; if there's no increase, nothing will be transferred. For each year after that, the amount transferred will be the previous year's deposit plus 25% of any increase in general fund money from the prior year compared to the year before that, with provisions to ensure a minimum deposit based on the previous year's amount if there's no overall increase. Any interest earned on money in the property tax relief fund will remain in the fund, and any spending from it will require a specific appropriation by the Legislature.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26597