South Dakota 2026 Regular Session Status: In Committee 6 D cosponsors

HB 1281 — reduce the sales and use tax rates on food, to increase the rates for certain taxes, use taxes, and excise taxes, and to provide a new fund for school district capital outlay projects.

Last action — Taxation Deferred to the 41st legislative day , Passed, YEAS 11, NAYS 0 H.J. 9

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced February 04, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 46% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 6 sponsors

    6 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (6 D).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

452 added · 470 removed

452 line(s) added, 470 removed.

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1281A 101st Legislative Session 1281 South Dakota Legislature House Bill 1281 AMENDMENT 1281A FOR THE INTRODUCED BILL Introduced by:
26.597.27 101st Legislative Session 1281 South Dakota Legislature House Bill 1281 Introduced by:
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF SOUTH D AKOTA :
B E IT ENACTED BY THE L EGISLATURE OF THE STATE OF SOUTH D AKOTA :
1281A 2 1281 (b) Candy;
26.597.27 2 1281 (b) Cannabis or cannabis products, as defined in § 34-20G-1;
(c) Cannabis or cannabis products, as defined in § 34-20G-1;
(c) Cigarettes, as defined in § 10-50B-4;
(c)(d) Cigarettes, as defined in § 10-50B-4;
(d) Prepared food;
(d)(e) Prepared food;
or (e) Tobacco products, as defined in § 10-50-1;
or (e)(f) Soft drinks;
or (g) Tobacco products, as defined in § 10-50-1;
Overstrikes indicate deleted language.
(c) Tickets or admissions to places of amusement and athletic events as provided in this chapter, and the sale at retail of products;
1281A 3 1281 (c) Tickets or admissions to places of amusement and athletic events as provided in this chapter, and the sale at retail of products;
The term also includes does not include any person subject to the tax imposed by §§ 10-45-4 and 10-45-5.
Overstrikes indicate deleted language.
26.597.27 3 1281 The term also includes does not include any person subject to the tax imposed by §§ 10-45-4 and 10-45-5.
and (14)(11) "Tangible personal property," personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses.
(14)(11) "Tangible personal property," personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses.
Overstrikes indicate deleted language.
(5) barbersBarbers;
1281A 4 1281 (5) barbersBarbers;
(8) blacksmithBlacksmith shops;
Overstrikes indicate deleted language.
26.597.27 4 1281 (8) blacksmithBlacksmith shops;
There is imposed, at the rate of four and two-tenths percent set forth in § 10-45-2, an excise tax on the gross receipts of any person engaging in oil and gas Overstrikes indicate deleted language.
There is imposed, at the rate of four and two-tenths percent set forth in § 10-45-2, an excise tax on the gross receipts of any person engaging in oil and gas field services (, group no.
1281A 5 1281 field services (, group no.
Section 5.
Overstrikes indicate deleted language.
26.597.27 5 1281 Section 5.
Overstrikes indicate deleted language.
10-45-6.2.
1281A 6 1281 10-45-6.2.
§ 124(7) as of (January 1, 2002), that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates.
§ 124(7) as of (January 1, 2002), that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or Overstrikes indicate deleted language.
26.597.27 6 1281 are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates.
Overstrikes indicate deleted language.
(2) "Candy," any preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces.
1281A 7 1281 (2) "Candy," any preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces.
(3) "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling, crating, and packing.
Overstrikes indicate deleted language.
26.597.27 7 1281 (3) "Delivery charges," charges by the retailer for preparation and delivery to a location designated by the purchaser of tangible personal property, any product transferred electronically, or services including transportation, shipping, postage, handling, crating, and packing.
(b) Candy;
(b) Cannabis or cannabis products, as defined in § 43-20G-1;
(c) Cannabis or cannabis products, as defined in § 43-20G-1;
(c) Cigarettes, as defined in § 10-50B-4;
(c)(d) Cigarettes, as defined in § 10-50B-4;
(d) Prepared food;
(d)(e) Prepared food;
or (e) Tobacco products, as defined in § 34-20G-1;
or (e)(f) Soft drinks;
or (g) Tobacco products, as defined in § 34-20G-1;
two Overstrikes indicate deleted language.
two (b) Two or more food ingredients mixed or combined by the seller for sale as a single item;
1281A 8 1281 (b) Two or more food ingredients mixed or combined by the seller for sale as a single item;
Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part 401.11 of its Food Code as of January 1, 2003, so as to prevent food borne illnesses;
Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal Overstrikes indicate deleted language.
26.597.27 8 1281 foods requiring cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part 401.11 of its Food Code as of January 1, 2003, so as to prevent food borne illnesses;
(12)(11) "Retailer maintaining a place of business in the state," any retailer having or maintaining within this state, directly or by a subsidiary, an office, distribution house, sales house, warehouse, or other place of business, or any agents operating Overstrikes indicate deleted language.
(12)(11) "Retailer maintaining a place of business in the state," any retailer having or maintaining within this state, directly or by a subsidiary, an office, distribution house, sales house, warehouse, or other place of business, or any agents operating within the state under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent is located here permanently or temporarily or whether such retailer or subsidiary is admitted to do business within this state pursuant to the laws of the State of South Dakota granting the rights of foreign corporations to do business in this state;
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1281A 9 1281 within the state under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent is located here permanently or temporarily or whether such retailer or subsidiary is admitted to do business within this state pursuant to the laws of the State of South Dakota granting the rights of foreign corporations to do business in this state;
Overstrikes indicate deleted language.
(13)(12) "Secretary," the secretary of the Department of Revenue or any duly authorized and appointed assistant, deputies, or agents of the secretary charged with the administration or enforcement of this chapter;
26.597.27 9 1281 (13)(12) "Secretary," the secretary of the Department of Revenue or any duly authorized and appointed assistant, deputies, or agents of the secretary charged with the administration or enforcement of this chapter;
Overstrikes indicate deleted language.
(1) Service rendered by a related corporation, as defined in subdivision 10-43-1(11), for use by a financial institution, as defined in subdivision 10-43-1(4);
1281A 10 1281 (1) Service rendered by a related corporation, as defined in subdivision 10-43-1(11), for use by a financial institution, as defined in subdivision 10-43-1(4);
For the purposes of this section, the term, "related corporation," includes a means a corporation associated with another as its parent or subsidiary, or in a brother-sister relationship.
Overstrikes indicate deleted language.
26.597.27 10 1281 For the purposes of this section, the term, "related corporation," includes a means a corporation associated with another as its parent or subsidiary, or in a brother-sister relationship.
Overstrikes indicate deleted language.
Section 16.
1281A 11 1281 Section 16.
§ 124(7) as of (January 1, 2002), that originate and terminate in the same state and are billed to a customer with a place of primary use in this state.
§ 124(7) as of (January 1, 2002), that originate and Overstrikes indicate deleted language.
26.597.27 11 1281 terminate in the same state and are billed to a customer with a place of primary use in this state.
Overstrikes indicate deleted language.
Section 19.
1281A 12 1281 Section 19.
Section 20.
Overstrikes indicate deleted language.
26.597.27 12 1281 Section 20.
Class A, on cigarettes weighing not more than three pounds per thousand, seventy- six and one-half mills twelve and one-half cents one hundred twenty-six and one-half mills on each cigarette.
Class A, on cigarettes weighing not more than three pounds per thousand, seventy- six and one-half mills twelve and one-half cents on each cigarette.
Class B, on cigarettes weighing more than three pounds per thousand, seventy-six and one-half mills twelve and one-half cents one hundred twenty-six and one-half mills on each cigarette.
Class B, on cigarettes weighing more than three pounds per thousand, seventy-six and one-half mills twelve and one-half cents on each cigarette.
There is imposed upon owners and operators a special amusement excise tax of four and two-tenths five percent of the gross receipts from the sale or the Overstrikes indicate deleted language.
There is imposed upon owners and operators a special amusement excise tax of four and two-tenths five percent of the gross receipts from the sale or the operation of any mechanical or electronic amusement device.
1281A 13 1281 operation of any mechanical or electronic amusement device.
The treasurer shall deposit in the school building construction fund, established in section 25 of this Act, two percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
Overstrikes indicate deleted language.
26.597.27 13 1281 The treasurer shall deposit in the school building construction fund, established in section 25 of this Act, two percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
There is created the school building construction fund, to be administered by the Department of School and Public Lands commissioner of school and public lands, for the purpose of making loans to school districts to construct or expand a school building, as provided in section 26 of this Act.
There is created the school building construction fund, to be administered by the Department of School and Public Lands, for the purpose of making loans to school districts to construct or expand a school building, as provided in section 26 of this Act.
The Subject to the provisions of this section, the treasurer shall deposit in the fund two percent the first sixty million dollars of the taxes collected pursuant to:
The treasurer shall deposit in the fund two percent of the taxes collected pursuant to:
If two percent of the taxes collected pursuant to subdivisions (1) to (4), inclusive, exceed sixty million dollars in a year, the treasurer shall deposit in the fund two percent of the taxes collected pursuant to subdivisions (1) to (4), inclusive, in excess of sixty million dollars, but not in excess of ninety million dollars.
Overstrikes indicate deleted language.
The Department of School and Public Lands may make loans from the school building construction fund, created in section 25 of this Act, to a school district for the purpose of constructing or expanding a school building.
1281A 14 1281 The Department of School and Public Lands commissioner of school and public lands may make loans from the school building construction fund, created in section 25 of this Act, to a school district for the purpose of constructing or expanding a school building.
The department commissioner may use up to one percent of the principal amount of a loan to offset the department's expenses in administering the loan.
The department may use up to one percent of the principal amount of a loan to offset the department's expenses in administering the loan.
Any loan made by the department commissioner must be provided to the district at an interest rate of zero percent.
Any loan made by the department must be provided to the district at an interest rate of zero percent.
(1) Thirty percent for the construction or expansion of a school building in a school district that has four thousand or more students;
Overstrikes indicate deleted language.
26.597.27 14 1281 (1) Thirty percent for the construction or expansion of a school building in a school district that has four thousand or more students;
or (2) The municipality in which the district is headquartered is less than ten miles from a municipality in which another school district is headquartered;
(2) The municipality in which the district is headquartered is less than ten miles from a municipality in which another school district is headquartered;
or (3) The school district has a fall enrollment of fewer than two hundred one hundred fifty students and is not designated as a sparse school district, as defined in § 13- 13-78.
or (3) The school district has a fall enrollment of fewer than two hundred students and is not designated as a sparse school district, as defined in § 13-13-78.
Overstrikes indicate deleted language.
The School Finance Accountability Board within the Department of Education shall promulgate rules, pursuant to chapter 1-26, specifying:
1281A 15 1281 The School Finance Accountability Board within the Department of Education shall promulgate rules, pursuant to chapter 1-26, specifying:
(b) The Department of Education department reviews, assesses, and approves a school district's application;
(b) The Department of Education reviews, assesses, and approves a school district's application;
and (c) The Department of School and Public Lands commissioner of school and public lands disburses a loan to a school district;
and (c) The Department of School and Public Lands disburses a loan to a school district;
and (e) The enrollment trends of the district during the previous ten years;
and Overstrikes indicate deleted language.
and (3) The criteria by which the Department of Education department assesses a school district's application for a loan in accordance with section 26 of this Act, including:
26.597.27 15 1281 (e) The enrollment trends of the district during the previous ten years;
and (3) The criteria by which the Department of Education assesses a school district's application for a loan in accordance with section 26 of this Act, including:
On or before August first of each year, the Department of School and Public Lands commissioner of school and public lands shall submit a report to the special committee, created in § 4-8A-2, detailing the number, amounts, and recipients of loans provided by the school building construction fund created in section 25 of this Act, and other relevant information pertaining to the fund or program, as requested by the committee.
On or before August first of each year, the Department of School and Public Lands shall submit a report to the special committee, created in § 4-8A-2, detailing the number, amounts, and recipients of loans provided by the school building construction fund created in section 25 of this Act, and other relevant information pertaining to the fund or program, as requested by the committee.
Overstrikes indicate deleted language.
Section 30.
1281A 16 1281 Section 30.
Underscores indicate new language.
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Action History

  1. Taxation Deferred to the 41st legislative day , Passed, YEAS 11, NAYS 0 H.J. 9

  2. Taxation Motion to amend , Passed, H.J. 9 Amendment 1281A

  3. Scheduled for hearing

  4. Scheduled for hearing

  5. First read in House and referred to House Taxation H.J. 220

Sponsors

Sponsorship breakdown

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6 sponsors · 0 co-sponsors · 99 not signed on

Sponsors (6)

Co-sponsors (0)

None.

Not signed on (99)

99 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Deferred to the 41st legislative day

Passed 11 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 11002
Total 11002
% of votes cast 85%0%0%15%
How each member voted (13)
Member Party Vote
Aaron Aylward Republican Yea
Curt Massie Republican Yea
John Hughes Republican Yea
Kent Roe Republican Yea
Keri Weems Republican Yea
Mike Weisgram Republican Yea
Peri Pourier Republican Yea
Phil Jensen Republican Yea
Rebecca Reimer Republican Yea
Tim Czmowski Republican Not Voting
Tim Walburg Republican Not Voting
Tony Randolph Republican Yea
Will Mortenson Republican Yea

Official roll call →

Subjects

taxation education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 1281?
HB 1281 is sponsored by Kadyn Wittman (Democratic), Nicole Uhre-Balk (Democratic), Liz Larson (Democratic), Erin Healy (Democratic), Eric Emery (Democratic), and Erik Muckey (Democratic).
What is the current status of HB 1281?
This bill is in committee in the House. Introduced February 04, 2026. It must pass committee before a floor vote.
Where can I track HB 1281?
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