Bill

SB 118

deposit certain tax revenues into a homeowner tax reduction fund.

2026 Regular Session Introduced by Casey Crabtree and 7 co-sponsors

SB 118 would create a Homeowner Tax Reduction Fund funded by redirecting certain tax revenues to provide property tax relief to homeowners.

Senate Do Pass Amended , Passed, YEAS 16, NAYS 17 S.J. 375

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WeVote Research Nonpartisan

Bill Summary · SB 118

Summary of SB 118 (Session 2026) – South Dakota

Title

Deposit certain tax revenues into a homeowner tax reduction fund.

Purpose and Intent

SB 118 proposes to direct a portion or specific tax revenues to establish or fund a homeowner tax reduction mechanism. The central aim appears to be providing property tax relief to homeowners by diverting designated tax revenues into a dedicated fund that reduces homeowners’ tax burdens. The bill’s structure suggests a ongoing program rather than a one-time appropriation.

Key Provisions and Changes (as indicated by the bill’s trajectory)

Establishment of a “Homeowner Tax Reduction Fund” (or equivalent mechanism) funded by deposit of specified tax revenues.
Direction of eligible tax revenues into the fund rather than (or in addition to) existing general fund or other statutory allocations.
Provisions likely define eligibility criteria, funding sources, and the formula or process by which fund dollars translate into tax relief for homeowners (e.g., credits, exemptions, or targeted tax reductions on property taxes).
Administrative elements may include reporting requirements, oversight, and any sunset or renewal provisions for the fund.
Any interaction with existing tax relief programs or caps on total disbursements is typically addressed (though specific details are not provided in the available text).

Who Would Be Affected

Homeowners: Primary beneficiaries through reduced property tax obligations via the new fund mechanism.
Taxpayers in general: Potential indirect effects via changes in available state revenues or how property tax relief is allocated.
Local governments: Depending on how revenue shifts interact with local assessment and tax collection processes, municipal and county budgeting could be impacted if property tax collections or state aid streams are altered.
State treasury/Department of Revenue: Responsible for implementing the fund, deposits, and any administrative procedures.

Procedural and Timeline Aspects

Introduction and referral: The bill was introduced and referred to the Senate Taxation Committee.
Committee action: The Taxation Committee considered amendments (notably Amendment 118B) and reported the bill with amendments.
Scheduling: The bill was scheduled for hearings and consideration on multiple dates within February 2026.
Amendments: The committee and subsequent readings included amendments (e.g., “Do Pass Amended” in committee and “Amendment 118B”).
Floor action: The bill progressed to the Senate floor, with multiple readings and votes.
Final status: Passed the Senate with amendments on Feb 24, 2026 (S.J. 375) after initial passage and calendar actions on earlier dates, indicating it advanced through the standard legislative process with amendments.

Notes for Readers

The exact mechanics (e.g., the specific revenue sources designated, the formula for calculating homeowner relief, duration, and interaction with existing tax relief programs) are not fully detailed in the provided summary. If you need precise provisions, refer to the enacted text or fiscal notes, which will specify:
- Which tax revenues are redirected (e.g., a portion of property-related taxes, statewide taxes, or specific earmarks)
- Eligibility criteria and caps for the relief
- Administrative oversight, reporting requirements, and sunset provisions (if any)

This summary covers the bill’s stated purpose, general approach to funding relief, affected parties, and the legislative path observed through the 2026 session.

Compiled from official sources — confirm details with the bill’s official record.