From Taxes to Firearms: What This Year’s Legislative Session Means for South Dakota Businesses
A Record-Low Passage Rate and Shifting Priorities - What Business Leaders Should Watch
By Justin G. Smith, Woods Fuller Shareholder
The 2025 South Dakota legislative session was the 100th such session since statehood. The legislature, comprised of 105 legislators (35 Senate and 70 House), had a large supermajority of Republicans. Even so, the Republican membership in the legislature was sharply divided on a number of key issues.
The major issues during the session were property taxes, election integrity, a tight state budget, school vouchers, protection of children from obscene content, and firearms. A total of 489 substantive bills was introduced; of these, only 211 bills ultimately passed, for a passage rate of 43% (the lowest in well over a decade).
Woods Fuller tracked the majority of the bills introduced this year. Of the bills that will become law, we think the following are of note.
- HB 1021: This bill came from the Department of Agriculture and Natural Resources. It adds new environmental and other permitting fees for combined animal feeding operations (CAFOs), creating a CAFO administrative subfund to defray expenses of administering the state CAFO program.
- HB 1037: This bill, proposed by former Gov. Kristi Noem, suspends for three years the sales-tax collection allowance credit for South Dakota businesses. South Dakota businesses are responsible for collecting and remitting state sales tax. State law gives these businesses a small refund allowance for their role as collectors/remitters. From July 1, 2025, through June 30, 2028, the allowance will be suspended, thereby keeping more money in the state budget during that time.
- HB 1059: For public bodies (e.g., city councils), this bill clarifies open-meetings law related to meetings by “teleconference.” The bill makes clear that discussions by a quorum of a public body through email, text message, and other platforms constitute “official meetings.” This was understood to be part of the law but some public bodies wanted more clarity.
- HB 1130: Municipal and school-board elections have been held in April across the state. This bill will change the law to require such elections to be held simultaneously with the statewide June primary or November general election. The choice on which of the two options will be made by the governing body for the municipality or school district.
- HB 1218: Brought by the NRA, this legislation prohibits the governing boards of cities, counties, and townships from adopting policies that would prevent their employees, officers, or volunteers from possessing a concealed firearm in any public building or facility. At the very end of the legislative session, the bill was also amended to repeal the state law that prohibits the carrying of concealed pistols in establishments serving alcohol. In other words, as of July 1, 2025, the holder of a concealed carry permit can carry a pistol in a bar in this state.
- SB 45: Introduced by the state Division of Motor Vehicles, this bill adds a new technology fee onto any title transaction associated with a motor vehicle in South Dakota. The funds generated by the new fee will be used for electronic titling and other systems implemented by the Division.
- SB 81: This legislation was introduced by the South Dakota Bankers Association in cooperation with the NRA. The new law will regulate the ability of banks and other financial institutions to track businesses that sell firearms or ammunition. Financial institutions will be prohibited from singling out these sellers for higher fees or other discriminatory treatment when compared with other types of businesses. The language of SB 81 was proposed by the Bankers Association as more reasonable than similar legislation that passed in other states.
- SB 100: Supported by the NRA, this bill requires the Board of Regents and the Board of Technical Education to allow holders of enhanced concealed-carry permits to possess and carry concealed pistols on state college and technical school premises. State colleges and technical schools were previously free to prohibit firearms on school premises.
- SB 131: Coming from the South Dakota Auto Dealers Association, this bill requires the Division of Motor Vehicles to implement an electronic vehicle-title system by July 1, 2026. The current system for motor-vehicle titles is largely based in paper documents, slowing down the process significantly. Today, many South Dakota consumers wait several months to receive their motor vehicle titles. The e-title system is expected to turn around receipt of titles within five business days. The legislation had near-unanimous support in the legislature.
- SB 216: Gov. Rhoden and his administration introduced this bill in an effort to address rising residential property taxes across the state. In 2027 – 2031, the legislation does the following: (i) the total assessed value of all owner-occupied property in a county cannot increase more than three percent over the prior year; and (ii) tax revenues payable to counties may not increase by more than three percent over the prior year. Some opponents of the bill argued it will result in a shift of tax burden from residential to commercial property. The legislature, working with the Governor’s Office, will also spend the balance of 2025 studying property taxes and related issues. Broader legislative proposals to address property taxation are expected during the 2026 legislative session.
- SB 219: This legislation will require every public school in the state to accept cash at all events. For certain events, one school district in the state had decided not to accept cash for various reasons. A group of legislators responded with introduction of SB 219. The bill would apply to any public-school events held on school premises or other venues.
As always, if you have questions about how a law may impact you or your business, the attorneys at Woods Fuller are available to help you navigate.