The civic record
Read. Follow. Verify.South Dakota Bill 1281 cuts food sales tax to zero, raises general sales and excise tax rates to 5%, and creates a school construction loan fund
Last action · February 19, 2026: Deferred to the 41st legislative daySponsors: Erik Muckey and 5 others
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What This Bill Proposed
South Dakota House Bill 1281 sets the sales and use tax rate on food and food ingredients to zero percent while raising the general sales tax, use tax, amusement excise tax, and various service excise taxes from 4.2 percent to 5 percent. It also creates a new zero-interest school building construction loan fund administered by the Department of School and Public Lands, funded in part by diverting 2 percent of collections from specified tax chapters.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Consumers
Consumers pay zero state sales tax on food purchases but experience higher tax rates on general retail goods, utilities, and services.
School districts
School districts meeting eligibility criteria can apply for zero-interest loans covering up to forty percent of school building construction or expansion costs.
Retailers
Retailers must collect and remit the increased 5 percent tax rate on general goods, services, and admissions.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
How much of a school construction project can a district borrow from the new fund?
Which school districts are excluded from receiving a construction loan?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
5 actions- Feb 19, 2026HouseDeferred to the 41st legislative day
- Feb 19, 2026HouseMotion to amend
- Feb 19, 2026HouseScheduled for hearing
- Feb 17, 2026HouseScheduled for hearing
- Feb 4, 2026HouseIntroducedFirst read in House and referred to
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Temporary Tax Rate Adjustments with Sunset Provision
The bill couples an immediate reduction in food taxation and an increase in general sales and excise taxes with an explicit repeal date of June 30, 2027, returning provisions to prior law.
Connected Entities
Sources
sdlegislature.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 85)
- Controversy75Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz55Current news / social attention level
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