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

SB 99 — create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.

Last action — Taxation Deferred to the 41st legislative day , Passed, YEAS 6, NAYS 1 S.J. 5

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

This bill is in committee in the Senate. Introduced January 20, 2026. It must pass committee before a floor vote.

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

Prognosis

Advancing 46% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • 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 R).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

379 added · 561 removed

379 line(s) added, 561 removed.

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Latest
99C 101st Legislative Session 99 South Dakota Legislature Senate Bill 99 AMENDMENT 99C FOR THE INTRODUCED BILL Introduced by:
26.283.25 101st Legislative Session 99 South Dakota Legislature Senate Bill 99 Introduced by:
Senator Mehlhaff An Act to create the property tax local effort replacement fund, to reduce certain property taxes, to reduce the sales and use tax rates on food, and to increase the rates for certain gross receipts taxes and use taxes.
Senator Mehlhaff An Act to create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.
(1) The maximum tax levy is five dollars and twenty-one and one-tenth cents per thousand dollars of taxable valuation, subject to the limitations on agricultural property as provided in subdivision (2) of this section and owner-occupied property as provided in subdivision (3) of this section;
(1) The maximum tax levy is five dollars and tw enty-one and one-tenth cents per thousand dollars of taxable valuation, subject to the limitations on agricultural property as provided in subdivision (2) of this section and owner-occupied property as provided in subdivision (3) of this section;
99C 2 99 maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section.
26.283.25 2 99 maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section.
That § 10-45-1 be AMENDED:
10-45-1.
Terms used in this chapter mean:
(1) "Agricultural purposes," the producing, raising, growing, or harvesting of food or fiber upon agricultural land, including dairy products, livestock, and crops.
The services of custom harvesters, chemical applicators, fertilizer spreaders, hay grinders, and cultivators are considered agricultural purposes.
The harvesting of timber on land within the state is considered an agricultural purpose;
(2) "Business," any activity engaged in by any person or caused to be engaged in by such person with the object of gain, benefit, or advantage, either direct or indirect;
(3) "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.
The term, candy, does not include any preparation containing flour and does not require refrigeration;
(4) "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.
The term does not include postage for direct mail;
(5) "Food" and "food ingredient," any substance, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion or chewing by humans and is consumed for its taste or nutritional value.
The term, food, does These terms do not include alcoholic beverages, tobacco, or prepared food:
(a) Alcoholic beverages, as defined in § 35-1-1;
(b) Cannabis or cannabis products, as defined in § 34-20G-1;
(c) Cigarettes, as defined in § 10-50B-4;
(d) Prepared food;
or (e) Tobacco products, as defined in § 10-50-1;
(6) Repealed by SL 2007, ch 56, § 1.
(7) "Person," any individual, firm, copartnership, joint adventure, association, limited liability company, corporation, municipal corporation, estate, trust, business trust, Overstrikes indicate deleted language.
99C 3 99 receiver, the State of South Dakota and its political subdivisions, or any group or combination acting as a unit;
(8) "Prepared food," any food:
(a) Food sold in a heated state or heated by the seller;
two (b) Two or more food ingredients mixed or combined by the seller for sale as a single item;
or food (c) Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.
A, but a plate does not include a container or packaging used to transport the food.
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;
(8A) "Product transferred electronically," any product obtained by the purchaser by means other than tangible storage media.
A product transferred electronically does not include any intangible such as a patent, stock, bond, goodwill, trademark, franchise, or copyright.
(9) "Relief agency," the state, and county, municipality or district thereof, or any agency engaged in actual relief work;
(10) "Retail sale" or "sale at retail," any sale, lease, or rental for any purpose other than for resale, sublease, or subrent;
(11) "Retailer," any person engaged in the business of selling tangible goods, wares, or merchandise at retail, or the furnishing of gas, electricity, water, and communication service, and tickets or admissions to places of amusement and athletic events as provided in this chapter, and the sale at retail of products transferred electronically.
The term also includes any person subject to the tax imposed by §§ 10-45-4 and 10-45-5.
The isolated or occasional sale of tangible personal property or any product transferred electronically at retail by a person who does not hold himself or herself out as engaging in the business of selling such tangible personal property or products transferred electronically at retail does not constitute such person a retailer;
(12) "Sale," any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration;
Overstrikes indicate deleted language.
Show all 178 changed rows (138 more)
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99C 4 99 (13) "Soft drinks," any nonalcoholic beverages that contain natural or artificial sweeteners.
The term, soft drinks, does not include any beverage that contains milk or milk products, soy, rice of similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume;
(14) "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.
The term includes electricity, water, gas, steam, and prewritten computer software.
Section 3.
There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and two-tenths at the rate of six and two-tenths one-half percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the state to consumers or users.
There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and two-tenths at the rate of six and two-tenths percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the state to consumers or users.
Section 4.
Section 3.
Overstrikes indicate deleted language.
(16) janitorialJanitorial services and supplies;
99C 5 99 (16) janitorialJanitorial services and supplies;
(20) membershipMembership or entrance fees for the use of a facility or for the right to purchase tangible personal property, any product transferred electronically, or services;
Overstrikes indicate deleted language.
26.283.25 3 99 (20) membershipMembership or entrance fees for the use of a facility or for the right to purchase tangible personal property, any product transferred electronically, or services;
Section 5.
Section 4.
Section 6.
Section 5.
Overstrikes indicate deleted language.
Section 6.
99C 6 99 Section 7.
10-45-6.1.
Overstrikes indicate deleted language.
26.283.25 4 99 10-45-6.1.
Section 8.
Section 7.
Section 9.
Section 8.
99C 7 99 10-45-8.
26.283.25 5 99 10-45-8.
Section 10.
Section 9.
Section 11.
Section 10.
That a NEW SECTION be added to chapter 10-45:
The rate imposed by this chapter upon the gross receipts of all sales of food and food ingredients, as defined by § 10-45-1, is zero percent.
Section 12.
That § 10-46-1 be AMENDED:
10-46-1.
Terms, as used in this chapter mean:
(1) "Business," any activity engaged in by any person or caused to be engaged in by such person with the object of gain, benefit or advantage either direct or indirect;
(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.
The term, candy, does not include any preparation containing flour and does not require refrigeration;
(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.
The term does not include postage for direct mail;
(4) "Fair market value," the price at which a willing seller and willing buyer will trade.
Fair market value shall be determined at the time of purchase.
If a public corporation is supplying tangible personal property or any product transferred electronically that will be used in the performance of a contract, fair market value Overstrikes indicate deleted language.
99C 8 99 shall be determined pursuant to § 5-18B-7.
This definition also applies to chapter 10-45;
(5) "Food" and "food ingredient," any substance, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion or chewing by humans and is consumed for its taste or nutritional value.
The term, food, does These terms do not include alcoholic beverages, tobacco, or prepared food:
(a) Alcoholic beverages, as defined in § 35-1-1;
(b) Cannabis or cannabis products, as defined in § 43-20G-1;
(c) Cigarettes, as defined in § 10-50B-4;
(d) Prepared food;
or (e) Tobacco products, as defined in § 34-20G-1;
(6) "Included in the measure of tax," the tangible personal property, any product transferred electronically, or the service was purchased from a retailer licensed under chapter 10-45 and that retailer has included the tax in the amount received from the sale;
(7) "In this state" or "in the state," within the exterior limits of the State of South Dakota and includes all territory within such limits owned by or ceded to the United States of America;
(8) "Prepared food," any food sold in a heated state or heated by the seller;
two or more food ingredients mixed or combined by the seller for sale as a single item;
or food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.
A plate does not include a container or packaging used to transport the food.
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;
(8A) "Product transferred electronically," any product obtained by the purchaser by means other than tangible storage media.
A product transferred electronically does not include any intangible such as a patent, stock, bond, goodwill, trademark, franchise, or copyright.
(9) "Purchase," any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration.
A transaction, whereby Overstrikes indicate deleted language.
99C 9 99 the possession of property is transferred but the seller retains the title as security for the payment of the price, is a purchase;
(10) "Purchase price," shall have the same meaning as gross receipts defined in chapter 10-45;
(11) "Retailer," any person performing services in this state or engaged in the business of selling tangible personal property or products transferred electronically for use, storage or other consumption within the meaning of this chapter.
However, if in the opinion of the secretary of revenue, it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, truckers, peddlers, or canvassers as agents of the dealers, distributors, supervisors, employers, or persons under whom they operate or from whom they obtain the tangible personal property or any product transferred electronically sold by them irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors, employers, or persons, the secretary of revenue may so regard them and may regard the dealers, distributors, supervisors, employers, or persons as retailers for purposes of this chapter;
(12) "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;
(13) "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;
(14) "Soft drinks," any nonalcoholic beverages that contain natural or artificial sweeteners.
The term, soft drinks, does not include any beverage that contains milk or milk products, soy, rice of similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume;
(15) "Storage," any keeping or retention in this state for use or other consumption in the State of South Dakota for any purpose except sale in the regular course of business;
Overstrikes indicate deleted language.
99C 10 99 (16) "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 if furnished or delivered to consumers or users within this state.
The term includes electricity, water, gas, steam, and prewritten computer software;
(17) "Use," the exercise of right or power over tangible personal property or any product transferred electronically incidental to the ownership of that property, except that it does not include the sale of that property in the regular course of business.
Use also includes the use of the types of services, the gross receipts from the sale of which are to be included in the measure of the tax imposed by chapter 10-45, and the delivery or causing delivery into this state of tangible personal property or any product transferred electronically intended to advertise any product or service or promote or facilitate any sale to South Dakota residents.
Section 13.
For the privilege of using services in South Dakota this state, except those types of services exempted by § 10-46-17.3, there is imposed on the person using the service an excise tax equal to four and two-tenths, at the rate of six and two-tenths one-half percent of the value of the services at the time they are rendered.
For the privilege of using services in South Dakota this state, except those types of services exempted by § 10-46-17.3, there is imposed on the person using the service an excise tax equal to four and two-tenths, at the rate of six and two-tenths percent of the value of the services at the time they are rendered.
Section 14.
Section 11.
99C 11 99 10-46-2.2.
26.283.25 6 99 10-46-2.2.
Section 15.
Section 12.
The treasurer shall deposit in the local effort replacement fund, established in section 25 29 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
The treasurer shall deposit in the local effort replacement fund, established in section 25 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
Section 16.
Section 13.
Section 17.
Section 14.
Section 18.
Section 15.
99C 12 99 this state, or that both originates and terminates in this state.
26.283.25 7 99 this state, or that both originates and terminates in this state.
Section 19.
Section 16.
Section 20.
Section 17.
That a NEW SECTION be added to chapter 10-46:
The rate of tax imposed by this chapter upon the use, storage, or consumption in this state of food and food ingredients is zero percent.
Section 21.
There is hereby imposed an excise tax of four and two-tenths percent, at the rate of six and two-tenths one-half percent, on the gross receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes.
There is hereby imposed an excise tax of four and two-tenths percent, at the rate of six and two-tenths percent, on the gross receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes.
Section 22.
Section 18.
Overstrikes indicate deleted language.
10-46E-9.
99C 13 99 10-46E-9.
The treasurer shall deposit in the local effort replacement fund, established in section 25 29 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
The treasurer shall deposit in the local effort replacement fund, established in section 25 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
Section 23.
Overstrikes indicate deleted language.
26.283.25 8 99 Section 19.
There is imposed upon owners and operators a special amusement excise tax of four and two-tenths six and two-tenths one-half percent of the gross receipts from the sale or the operation of any mechanical or electronic amusement device.
There is imposed upon owners and operators a special amusement excise tax of four and two-tenths six and two-tenths percent of the gross receipts from the sale or the operation of any mechanical or electronic amusement device.
Section 24.
Section 20.
The treasurer shall deposit in the local effort replacement fund, established in section 25 29 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
The treasurer shall deposit in the local effort replacement fund, established in section 25 of this Act, thirty-two and three-tenths percent of the taxes collected by the secretary of the Department of Revenue pursuant to this chapter.
Section 25.
Section 21.
Section 26.
Section 22.
For school fiscal years 2017 Overstrikes indicate deleted language.
For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1.
99C 14 99 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1.
Section 27.
Overstrikes indicate deleted language.
26.283.25 9 99 Section 23.
Section 28.
Section 24.
The state general fund savings obtained through the state aid to education formula from the difference between the school general fund levy for agriculture property for taxes payable in 2018 pursuant to §§ 13-13-71, 13-13-72, and 13-13-72.1, Overstrikes indicate deleted language.
The state general fund savings obtained through the state aid to education formula from the difference between the school general fund levy for agriculture property for taxes payable in 2018 pursuant to §§ 13-13-71, 13-13-72, and 13-13-72.1, and the agriculture property levy adopted by legislative action for taxes payable in 2018, are in place until July 1, 2040.
99C 15 99 and the agriculture property levy adopted by legislative action for taxes payable in 2018, are in place until July 1, 2040.
Section 25.
Section 29.
(1) Chapter 10-45;
Overstrikes indicate deleted language.
26.283.25 10 99 (1) Chapter 10-45;
and (4) Chapter 10-58;
(4) Chapter 10-58;
Section 30.
Section 26.
Overstrikes indicate deleted language.
Section 27.
99C 16 99 Section 31.
(5) "Level five disability," multiple disabilities;
Overstrikes indicate deleted language.
26.283.25 11 99 (5) "Level five disability," multiple disabilities;
For each school year thereafter, the Overstrikes indicate deleted language.
For each school year thereafter, the allocation for a student with a level five disability must be the previous fiscal year's allocation for the child increased by the index factor;
99C 17 99 allocation for a student with a level five disability must be the previous fiscal year's allocation for the child increased by the index factor;
(13) "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education;
Overstrikes indicate deleted language.
26.283.25 12 99 (13) "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education;
Overstrikes indicate deleted language.
(17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
99C 18 99 (17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
(b) Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;
Overstrikes indicate deleted language.
26.283.25 13 99 (b) Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;
Section 32.
Section 28.
There is hereby imposed a tax of four and two-tenths, at the rate of six and two- tenths percent, upon the gross receipts of any person renting a rental vehicle as defined in § 32-5B-19.
There is hereby imposed a tax of four and two-tenths, at the rate of six and two-tenths percent, upon the gross receipts of any person renting a rental vehicle as defined in § 32-5B-19.
Any rental vehicle not licensed in accordance with § 32-5-6, 32-5-8.1, or 32-5-9 is subject to the motor vehicle excise tax in § 32-5B-1.
Any rental vehicle not licensed in accordance with § 32-5- 6, 32-5-8.1, or 32-5-9 is subject to the motor vehicle excise tax in § 32-5B-1.
Overstrikes indicate deleted language.
The tax imposed by this section is in addition to any tax levied pursuant to chapter 10-45 or 10-46 upon the rental of a rental vehicle.
99C 19 99 The tax imposed by this section is in addition to any tax levied pursuant to chapter 10-45 or 10-46 upon the rental of a rental vehicle.
Section 33.
Overstrikes indicate deleted language.
26.283.25 14 99 Section 29.
Section 32.
Section 30.
Section 33.
Section 31.
Section 34.
Section 32.
However, for fiscal year 2014, and each year thereafter, if the levy specified in subdivision 13-37-35.1(7) is not adjusted to maintain this Overstrikes indicate deleted language.
However, for fiscal year 2014, and each year thereafter, if the levy specified in subdivision 13-37-35.1(7) is not adjusted to maintain this relationship, the funding allocation for each disability level as defined in § 13-37-35.1 shall be reduced proportionally to maintain the relationship between statewide local effort as a percentage of statewide local need.
99C 20 99 relationship, the funding allocation for each disability level as defined in § 13-37-35.1 shall be reduced proportionally to maintain the relationship between statewide local effort as a percentage of statewide local need.
Section 33.
Section 35.
Section 36.
Overstrikes indicate deleted language.
26.283.25 15 99 Section 34.
Section 37.
Section 35.
Sections 2 to 20 24, inclusive, and sections 25, 28, and section 29 of this Act are effective beginning July January 1, 2027.
Sections 2 to 20, inclusive, and sections 25, 28, and 29 of this Act are effective beginning July 1, 2027.
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Action History

  1. Taxation Deferred to the 41st legislative day , Passed, YEAS 6, NAYS 1 S.J. 5

  2. Taxation Motion to amend , Passed, S.J. 5 Amendment 99C

  3. Scheduled for hearing

  4. First read in Senate and referred to Senate Taxation S.J. 67

Sponsors

Sponsorship breakdown

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6 sponsors · 0 co-sponsors · 99 not signed on · 1 voted No

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.

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Frequently asked questions

Who sponsors SB 99?
SB 99 is sponsored by Carl Perry (Republican), Tim Goodwin (Republican), Helene Duhamel (Republican), Randy Deibert (Republican), Aaron Aylward (Republican), and Jim Mehlhaff (Republican).
What is the current status of SB 99?
This bill is in committee in the Senate. Introduced January 20, 2026. It must pass committee before a floor vote.
Where can I track SB 99?
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