2026 South Dakota Legislative Session – Week Three

Bill Filing Deadlines

Week three of the 2026 legislative session was capped off by the unlimited bill introduction deadline for legislators on Thursday, Jan. 29. After this date, legislators are only able to each introduce a maximum of three more pieces of legislation before the final bill deadline on Feb. 4.

At the time of writing this article, there are currently 457 pieces of legislation introduced, including bills and joint resolutions. We anticipate the final total for the 2026 legislative session will be around 550 bills and resolutions.

Movement This Week

HJR 5002 was a measure that would have placed a constitutional amendment on the general election ballot this fall asking voters to repeal Medicaid expansion at the state level. In 2022, South Dakota voters approved Medicaid expansion with 56% support. However, some legislators in Pierre feel the state cannot afford to support this program and that voters should have the opportunity to repeal it.

HJR 5002 passed out of the House State Affairs Committee earlier this week. However, the bill failed on the floor by a vote of 27 yes, 39 no and four excused. This session, we have seen a growing effort by the Legislature to introduce several ballot questions to voters. There are currently eight joint resolutions introduced between both chambers, which could make for a crowded ballot in the 2026 general election.

This week, there was a first hearing on SB 97, which would change a policy implemented by SB 216 that passed during the 2025 legislative session. SB 97 would raise the amount of property tax dollars that could be collected by local governments on new construction or growth to 5%, instead of the 3% cap enacted last year. Placing a cap on property taxes collected from growth puts more burden on current taxpayers rather than capturing revenue from new development.

SB 97 passed the Senate Taxation Committee and the Chamber spoke in support of the measure, as it will assist in investment in critical infrastructure.

Looking Ahead

We anticipate that HB 1005, an act to provide a state sales and use tax exemption to data center operations, will have a hearing next week. More than 40 other states already have this policy or something similar in law. Data centers are becoming critical to the nation’s economy. They support credit and debit card transactions, social media platforms, electronic medical records, web services and online shopping, among many other functions.

Passage of this legislation would keep South Dakota competitive when it comes to investing in commercial innovation while bolstering the state’s commercial tax base and helping ease the burden on residential and agricultural property taxpayers. 

Reach Out to Your Legislators

Now more than ever, it is critical for elected officials to hear from their constituents on issues important to you, your industry and your community. If there is legislation that impacts you positively or negatively, please reach out to your local legislators by email or phone. You can find contact information on our website or on the LRC website. 

Stay Informed

As always, continue to stay informed on the issues the Greater Sioux Falls Chamber of Commerce is advocating for by reading Chamber Advocate and reviewing the full list on our Bill Tracker. 

If you have questions on legislation, please contact the Greater Sioux Falls Chamber of Commerce policy team. We are happy to talk through any bills with you.