South Dakota Proposes Property Tax Credit and Fund Transfers for Single-Family Homeowners

Original title: provide a tax credit for owner-occupied property, to make an appropriation therefor, and to transfer moneys to the general fund.

Last action · March 2, 2026: TabledSponsors: Jon Hansen and 8 others

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Introduced

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Floor Vote

Passed

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What This Bill Proposed

House Bill 1261 establishes a property tax credit of up to $500 for owner-occupied single-family dwellings for taxes payable in 2027, backed by s from the general fund and budget reserve fund. The measure also directs a $101 transfer from the South Dakota housing infrastructure fund to the general fund.

Why it matters

Qualifying homeowners could see their 2027 property tax bills reduced by up to $500, with state funds appropriated to reimburse local treasurers for the forgone revenue.

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.

Directly affected

Owners of owner-occupied single-family dwellings

Eligible homeowners receive a property tax credit of up to $500 for property taxes payable in 2027.

Directly affected

Department of Revenue

Receives appropriations to replace revenue forgone by the application of the property tax credit.

Directly affected

County treasurers

Required to apply the tax credit to tax bills sent to eligible property owners.

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

Who is eligible for the property tax credit in HB 1261?

Owners of owner-occupied single-family dwellings for property taxes payable in 2027.

What is the maximum amount of the tax credit?

The lesser of five hundred dollars or the total amount of property tax imposed on the dwelling in 2027.

What else do you want to know?

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Where This Stands

This bill did not become law - Tabled in the House.

Procedural history

5 actions

Mar 2, 2026House
Tabled
Feb 25, 2026Joint Committee on AppropriationsCommittee
Do Pass Amended
Feb 25, 2026Joint Committee on Appropriations
Motion to amend
Feb 25, 2026Joint Committee on Appropriations
Scheduled for hearing
Feb 3, 2026HouseIntroduced
First read in House and referred to

Version history

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