Bill > SB245

This bill establishes a new "homeowner property tax reduction fund" within the state treasury, to be managed by the Department of Revenue, with the specific goal of providing property tax relief for owner-occupied single-family homes by reducing local education levies. Starting August 1, 2027, a portion of taxes collected from sales tax (Chapter 10-45), use tax (Chapter 10-46), certain business taxes (Chapter 10-46E), and other specific taxes (Chapter 10-58) will be deposited into this fund, with the "applicable percent" being three-tenths of a percent divided by the relevant tax rate. Additionally, on July 1, 2026, a significant sum of over $55 million will be transferred from the "general revenue replacement fund" (a fund designed to offset revenue losses) into this new homeowner property tax reduction fund. Importantly, any interest earned on money in the fund will remain there, expenditures will be part of the general appropriation bill, and funds from this homeowner property tax reduction fund cannot be moved to the general fund.

Government Affairs

State Affairs (Senate)

https://sdlegislature.gov/#/Session/Bill/27158