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PROPOSEDREPEALEDSouth DakotaMEDIUM IMPACT

Repeal of Income Modifications for Bank Franchise Tax on Bad Debts

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PROPOSED LEGISLATIONThis bill has been introduced but has NOT been signed into law. Legislative proposals may be amended, passed, or fail to advance. This is not current law.

This proposed bill would repeal certain income modifications related to bad debts under the bank franchise tax in South Dakota. Before this change, banks could adjust their taxable income based on specific provisions regarding bad debts. If enacted, this change would remove those adjustments, potentially affecting how much tax banks owe. The exact impact will depend on each bank's financial situation and the specifics of their bad debt provisions. Since the effective date is not specified, it is unclear when these changes would take effect if the bill becomes law.

Published February 17, 2026
WHAT CHANGED
BEFORE

Banks could adjust their taxable income for bank franchise tax purposes based on specific provisions related to bad debts.

AFTER

This proposed bill would repeal certain income modifications related to bad debts under the bank franchise tax in South Dakota. Before this change, banks could adjust their taxable income based on specific provisions regarding bad debts. If enacted, this change would remove those adjustments, potentially affecting how much tax banks owe. The exact impact will depend on each bank's financial situation and the specifics of their bad debt provisions. Since the effective date is not specified, it is unclear when these changes would take effect if the bill becomes law.

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