South Dakota Senate Passes Bill for Detached Garage Tax Breaks

Legislation could save homeowners hundreds in property taxes

Published on Feb. 12, 2026

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The South Dakota state Senate has unanimously passed a bill that would reclassify detached garages as owner-occupied property, potentially saving homeowners hundreds of dollars per year in property taxes. The bill now heads to the House Taxation Committee, though a hearing date has not yet been scheduled.

Why it matters

This legislation aims to provide tax relief for homeowners with detached garages, which are common in many rural and suburban areas of South Dakota. The potential savings of $269 per $100,000 of property valuation could make a meaningful difference for some homeowners.

The details

The bill would reclassify detached structures like garages as owner-occupied property, rather than classifying them as separate non-residential structures. This change in classification could provide homeowners with significant property tax savings, estimated at $269 per $100,000 of property valuation.

  • The state Senate passed the bill unanimously on February 12, 2026.
  • The bill now heads to the House Taxation Committee, but a hearing date has not yet been scheduled.

The players

South Dakota State Senate

The upper chamber of the South Dakota state legislature, which unanimously passed the bill to provide tax breaks for detached garages.

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What’s next

The bill must now be considered by the South Dakota House of Representatives' Taxation Committee, though a hearing date has not yet been scheduled.

The takeaway

This legislation aims to provide meaningful tax relief for South Dakota homeowners with detached garages, which are common in many parts of the state. The potential savings could make a difference for some households, though the bill still needs to clear the state House before becoming law.