Modify tax refunds for elderly persons and persons with a disability, to make an appropriation therefor, and to declare an emergency.
Summary
SB44 revises South Dakota’s property tax refund and sales tax refund programs for elderly persons and persons with disabilities. The bill updates the income thresholds and refund formulas used to determine eligibility and the amount of relief available under chapters 10-18A and 10-45A, increasing or recalibrating the refund amounts for single-member and multiple-member households. It also appropriates $425,000 from the general fund to the Department of Revenue to pay the refunds, with up to $20,000 available for administration.
The measure is framed as an emergency act, meaning it takes effect immediately upon approval rather than waiting for the normal effective date. In practical terms, it changes state law governing tax relief for qualifying seniors and disabled residents by adjusting the statutory schedules for real property tax refunds and sales tax refunds, and by authorizing the Department of Revenue and state auditor to process the payments. Any unspent funds revert by June 30, 2026.
Impact
SB44 amends §§ 10-18A-5, 10-18A-6, 10-45A-5, and 10-45A-6 of the South Dakota Codified Laws, changing the income brackets and refund calculations for property tax and sales tax relief claims. It also creates a new general fund appropriation of $425,000 for the Department of Revenue, with a limited amount for administrative costs, thereby affecting state expenditures and the administration of tax refund programs for eligible elderly and disabled taxpayers.
Sentiment
The bill appears to have broad support and little visible opposition. It passed the Senate committee 16-0, the House committee 35-0, and the full chamber 69-1, indicating strong bipartisan approval. The emergency clause and appropriation suggest the legislature viewed the measure as timely and necessary to continue or improve existing tax relief.
Contention
No committee testimony or debate transcripts were provided, and the recorded votes show minimal disagreement. The only notable point of potential contention is the use of general fund dollars for a targeted refund program, including administrative expenses, but the near-unanimous votes suggest that any concerns about cost, eligibility thresholds, or program design were not significant enough to generate sustained opposition.
Creates the middle class circuit breaker tax credit allowing a credit against personal income tax, equal to seventy percent of the amount by which the taxpayer's net real property tax or the taxpayer's real property tax equivalent exceeds the taxpayer's maximum real property tax; establishes a tax reform study commission.