The Chamber Advoacte

2026 South Dakota Legislative Session – Week Four

During week 4, we hit the final bill-filing deadline. There were a total of 590 bills introduced, not including any joint resolutions. Some of the bill themes we are seeing revolve around tax increment financing (TIF), regulation of large-scale data centers, property taxes, public education spending regulation and more.

This past week, the Chamber advocated on several bills. HB 1186 was a bill that would give county commissioners the ability to veto a TIF proposed by a municipality in their jurisdiction. The Chamber opposed this bill in the House Taxation Committee, and it was defeated.

Your Chamber also advocated in support of HB 1245, legislation that would allow municipalities to propose a voter-approved local option sales tax up to 1% for a maximum of five years that would go toward funding a list of capital projects. The bill passed out of the House Local Government Committee on Thursday and will be heard on the House floor next week.

Finally, HB 1005, legislation that would provide protections to electric consumers while also providing a sales tax exemption incentive to large-scale data centers, was defeated in House State Affairs. While the bill failed, we are far from done discussing the hot topic of data centers in South Dakota this session.

Looking ahead, after the bill-introduction deadline occurred this week, we will have a busy few weeks ahead, as many bills have not had their first hearing yet.

As always, please continue to stay up to date on the movement in the state Capitol with Chamber Advocate, and see our full list of bills we are working on with 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.