25.794.12 100th Legislative Session 131
2025 South Dakota Legislature
Senate Bill 131
ENROLLED
AN ACT
ENTITLED An Act to establish an electronic system for vehicle titles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-4-2 be AMENDED:
10-4-2. Real property, for the purposes of ad valorem taxation, includes:
(1) Land and all rights and privileges thereto belonging;
(2) Improvements to land and all rights and privileges thereto belonging, consisting of
items permanently affixed to and becoming part of the real estate. The term,
permanently affixed, refers to the economic life of the improvement rather than
perpetuity;
(3) Mines, minerals, and quarries;
(4) Buildings and structures which are on foundations, and improvements to buildings
and structures including any heating system, air conditioning, ventilation,
sanitation, lighting, or plumbing which is part of the building or structure; and
(5) Mobile homes as defined in § 32-3-1 which are on foundations.
For assessment purposes, a structure is anything constructed or erected from an
assembly of materials, which requires a permanent location on or in the ground.
For assessment purposes, a building is a structure designed to stand permanently
and cover a space of land which is enclosed by walls and is covered with a roof.
Section 2. That § 10-4-2.4 be AMENDED:
10-4-2.4. Real property, for the purposes of ad valorem taxation, includes
manufactured homes as defined in § 32-3-1 and mobile homes as defined in § 32-3-1.
This section does not apply to any manufactured home in the inventory of any dealer as
defined in § 32-7A-1.
Section 3. That § 10-9-1 be AMENDED: 25.794.12 2 131
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10-9-1. As used in this chapter, unless the context otherwise plainly requires,
"mobile home" means a mobile home as that term is defined in § 32-3-1.
Section 4. That § 10-45-2.1 be AMENDED:
10-45-2.1. Sales of sectional homes are subject to sales tax, which shall be based
upon the fair market value of the raw materials used to construct each home.
For the purpose of this section, the term, sectional homes, means any home pre -
built in whole or in part for the purpose of permanent placement on a foundation. Mobile
homes as defined in § 32-3-1 and manufactured homes as defined in § 32-3-1 are not
sectional homes.
Section 5. That § 10-46-5.1 be AMENDED:
10-46-5.1. If a sectional home is permanently affixed to real property, it is not a
vehicle subject to registration under chapter 32-3, and shall be classified as real property.
A contractor who erects such a home shall hold a sales tax or use tax license and pay use
tax based upon the fair market value of the raw materials used to construct and erect the
home.
For the purpose of this section, the term, sectional home, means any home pre -
built in part or in whole for the purpose of permanent placement on a foundation. Mobile
homes as defined by § 32-3-1 and manufactured homes as defined in § 32-3-1 are not
sectional homes.
Section 6. That § 32-3-1 be AMENDED:
32-3-1. Terms used in chapters 32-3 to 32-5B, inclusive, mean:
(1) "Approved entity," any person who receives or transfers a vehicle title by sale, gift,
or any means, and who is authorized by the department to use the electronic title
and registration system to validate ownership and facilitate the assignment,
reassignment, or transfer of title custody or ownership of a vehicle without a paper
record;
(2) "Commercial motor vehicle," any motor vehicle used or maintained for the
transportation of persons or property for hire, compensation, or profit; or designed,
used, or maintained primarily for the transportation of property, and not
specifically excluded under § 32-9-3; 25.794.12 3 131
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(3) "Component part," any part of a motor vehicle, trailer, or semitrailer other than a
tire, having a vehicle identification number;
(4) "Dealer," any person who, for commission or with intent to make a profit or gain,
sells, exchanges, rents with option to purchase, offers, or attempts to negotiate a
sale or exchange of new, or new and used vehicles; or who is engaged wholly or
in part in the business of selling new, or new and used vehicles, whether or not the
vehicles are owned by that person;
(5) "Department," Department of Revenue;
(6) "Electric bicycle," as that term is defined in § 32-20B-9;
(7) "Electronic title and registration system," a system established under § 32-3-69.1
by which title applications, title lien statements, certificates of title, and other
supporting documents, signatures, and fees are entered and transmitted through
the title application and registration process in an electronic format;
(8) "ERT provider," a person who operates a program that provides title and
registration services and is authorized by the department to act on behalf of the
department and county treasurers in receiving, processing, and transmitting to the
department registration applications and related fees;
(9) "Gross vehicle weight rating," the value specified by the manufacturer as the
loaded weight of a single vehicle;
(10) "Junking certificate," a certificate of ownership, which may not be restored to a
title document that allows highway use, issued by the department to the owner of
a vehicle that is going to be dismantled and sold for parts;
(11) "Low-speed vehicle," a four-wheeled motor vehicle whose speed attainable in one
mile is more than twenty miles per hour and not more than twenty -five miles per
hour on a paved level surface;
(12) "Manufactured home," a structure, transportable in one or more sections, that is
eight body feet or more in width or forty body feet or more in length in the traveling
mode, or is three hundred twenty square feet or more when erected on a site; that
is built on a permanent chassis and designed to be used as a dwelling, with or
without a permanent foundation, when connected to the required utilities; and that
contains the plumbing, heating, air conditioning, and electrical systems therein.
The term includes any structure that meets all the requirements of this subdivision
and any other structure that has been certified by the secretary of housing and
urban development. The term does not include a recreational park trailer; 25.794.12 4 131
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(13) "Manufacturer," any person, firm, corporation, limited liability company, or
association engaged in the manufacture of new motor vehicles as a regular
business;
(14) "Mobile home," a movable or portable unit, designed and constructed to be towed
on its own chassis (comprised of frame and wheels), and designed to be connected
to utilities for year-round occupancy. The term includes:
(a) Units containing parts that may be folded, collapsed, or telescoped when
being towed and that may be expanded to provide additional cubic capacity;
and
(b) Units composed of two or more separately towable components designed
to be joined into one integral unit capable of being separated again into the
components for repeated towing.
The term does not include a recreational park trailer;
(15) "Moped," a motor-driven cycle equipped with two or three wheels. If a combustion
engine is used, the maximum piston or rotor displacement is fifty cubic centimeters
regardless of the number of chambers in the power source. The power source must
be equipped with a power drive system that functions directly or automatically
only, not requiring clutching or shifting by the operator after the drive system is
engaged. The term does not include an electric bicycle;
(16) "Motorcycle," includes motorcycles, motorbikes, mopeds, bicycles with a motor
attached, and all motor-operated vehicles of the bicycle or tricycle type, whether
the motive power be a part thereof or attached thereto, and having a saddle or
seat with the driver sitting astride or upon it, or a platform on which the driver
stands, but excluding a tractor. The term does not include an electric bicycle;
(17) "Motor vehicle," automobiles, motor trucks, motorcycles, house trailers, trailers,
and all vehicles propelled by power other than muscular power, except traction
engines, road rollers, farm wagons, freight trailers, vehicles that run only on rails
or tracks, electric bicycles, multi-passenger quadricycle as defined in § 32-14-17,
and off-road vehicles as defined in § 32-20-1;
(18) "New motor vehicle," any motor vehicle to which a manufacturer's statement of
origin has not been transferred, or is a motor vehicle on which title was issued
from the manufacturer's statement of origin or manufacturer's certificate of origin
and is still in the name of the first person who took title to the vehicle;
(19) "Noncommercial motor vehicle," any motor vehicle not classified as a commercial
motor vehicle; 25.794.12 5 131
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(20) "Noncommercial trailer or semitrailer," any trailer or semitrailer not used or
maintained for the transportation of persons or property for hire, compensation, or
profit;
(21) "Notation," a physical or electronic process of recording a lien on a certificate of
title, a manufacturer's statement of origin, or a manufacturer's certificate of origin;
(22) "Off-road vehicle," any self-propelled, two-or-more-wheeled vehicle designed
primarily to be operated on land other than a highway and includes all terrain
vehicles, dune buggies, and any vehicle whose manufacturer's statement of origin
or manufacturer's certificate of origin states that the vehicle is not for highway use.
The term does not include a farm vehicle or an electric bicycle as defined in this
section;
(23) "Owner," any person, firm, association, trust, or corporation renting a motor
vehicle or having the exclusive use thereof, under a lease or otherwise, for a period
greater than thirty days; as between contract vendor and contract vendee, the
term, owner, refers to the contract vendee, unless the contrary clearly appears
from the context of chapters 32-3 to 32-5B, inclusive, or a person or trust having
legal possession or title;
(24) "Rebuilt vehicle," any motor vehicle, trailer, or semitrailer that has been rebuilt by
the addition or deletion of assemblies, subassemblies, parts, or component parts
so that upon gross visual examination it does not appear to be the vehicle described
in the certificate of title last issued for the vehicle, or whose title has been marked
as rebuilt by this state or another state or jurisdiction;
(25) "Recreational park trailer," a vehicle that is primarily designed to provide
temporary living quarters for recreational, camping, or seasonal use and which:
(a) Is built on a single chassis mounted on wheels;
(b) Has a gross trailer area not exceeding four hundred square feet in the setup
mode;
(c) Is certified by the manufacturer as complying with American National
Standards Institute Standard No. A119.5 in effect on January 1, 2008; and
(d) Has at least a seventeen digit identification number and the manufacturer
has designated the vehicle as a recreational park model on the
manufacturer statement of origin;
(26) "Recreational vehicle," a vehicular portable structure built on a chassis designed to
be used as a temporary dwelling for travel, recreational, vacation, or seasonal uses, 25.794.12 6 131
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and that is permanently identified as a travel trailer or a recreational park trailer
by the manufacturer of the trailer;
(27) "Road tractor," any motor vehicle designed and used for drawing other vehicles,
except farm or logging tractors used exclusively for farming or logging, and not so
constructed as to carry any load thereon either independently or any part of the
weight of a vehicle or load so drawn;
(28) "Secretary," secretary of revenue;
(29) "Semitrailer," any vehicle of the trailer type, equipped with a kingpin assembly,
designed and used in conjunction with a fifth wheel connecting device on a motor
vehicle constructed so that some part of its weight and that of its load rests upon
or is carried by another vehicle;
(30) "State," includes the territories and the federal districts of the United States;
(31) "Trailer," any vehicle without motive power designed for carrying property or
passengers wholly on its own structure and for being drawn by a motor vehicle;
(32) "Truck tractor," any motor vehicle designed and used primarily for drawing other
vehicles and not so constructed as to carry a load other than a part of the weight
of the vehicle and load so drawn;
(33) "Used vehicle," any motor vehicle to which title has been issued to someone other
than the first person who took title to the motor vehicle from the manufacturer's
statement of origin or manufacturer's certificate of origin; and
(34) "Vehicle identification number," the number assigned by the manufacturer or by
the department for the purpose of identifying the vehicle. The term includes any
number or letters assigned by the manufacturer for the purpose of identifying a
component part and any such number stamped on a vehicle or part according to
law or the rules promulgated by the department for the purpose of identifying the
vehicle or part.
Section 7. That § 32-3-53 be AMENDED:
32-3-53. If any vehicle, trailer, or semitrailer is rebuilt as defined in § 32-3-1 and
is restored to operation, the owner shall submit an application to the Department of
Revenue for a rebuilt title. The motor vehicle, trailer, or semitrailer may not be licensed
or titled until there is submitted to the department proper affidavits, photo copies of
receipts, bills of sale establishing ownership, or titles and the source of all parts and
component parts used to rebuild the vehicle. The rebuilt title and registration shall be
issued and delivered in accordance with the provisions of this chapter. After the motor 25.794.12 7 131
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vehicle is inspected, the owner shall take his copy of the certificate of inspection to the
county treasurer, purchase his license plates and pay any tax owed. Once the department
is notified that the inspection is complete and has verified that the correct amount of tax
has been paid, it shall issue a rebuilt title. Each new certificate of title shall have noted
thereon that the vehicle has been rebuilt. The highway patrol or an employee of the
department may inspect rebuilt titles and rebuilt motor vehicles.
Section 8. That § 32-3-57 be AMENDED:
32-3-57. The secretary of revenue may promulgate rules pursuant to chapter 1-
26 and issue instructions as are necessary to ensure and obtain uniformity in the
administration of the provisions of this chapter. Rules may be adopted in the following
areas:
(1) Application requirements for new vehicles, trailers, snowmobiles, and mobile
homes;
(2) Certificate of title for vehicles previously registered, time limits of making
application, duplicate certificates, and transfer of certificate of title;
(3) Assignment of certificate of title;
(4) Corrections of titles and procedure when there is a body type change;
(5) Lien recording, assignment of liens, execution of cancellation of liens, and delivery
of certificate of title;
(6) Transfer of ownership;
(7) Registration tax dealers guides for used vehicles or mobile homes, older motor
vehicles and government vehicles, title and license requirements, nonresident
reciprocity, manufacturer's price sticker, wrecked motor vehicles, leased vehicles,
and homemade vehicles;
(8) Establishment of a transaction fee for online access to the title and registration
system that does not exceed fifty cents for each transaction;
(9) Standards and procedures for the electronic title and registration system under
§ 32-3-69.1, including qualifications, applications, and annual registration fees for
approved entities;
(10) Standards and procedures for the electronic lien filing system under § 32-3-70;
and
(11) Requirements for retention of physical documents.
All local officials charged with the administration of the provisions of this chapter
are governed in their official acts by the rules promulgated by the secretary. 25.794.12 8 131
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Section 9. That § 32-3-69.1 be AMENDED:
32-3-69.1. On or before July 1, 2026, the department shall establish an electronic
title and registration system for motor vehicles; boats, as described in chapters 32-3A and
32-7B; vehicles, as defined in § 32-6B-1; snowmobiles, as described in chapter 32-6C;
manufactured and mobile homes, as described in chapter 32-7A; commercial motor
vehicles, as described in chapter 32-9; and fleet vehicles and fleets, as described in
chapter 32-10.
The electronic title and registration system required under this section must
permit:
(1) Electronic transmission of data and scans by an approved entity or county treasurer
to or from the department in lieu of the transmission of paper documents required
under this chapter, including:
(a) The manufacturer's statement of origin;
(b) The manufacturer's certificate of origin; and
(c) Odometer disclosure information;
(2) Receipt and processing of electronic record transactions from an approved entity;
(3) The production and submission by an approved entity of title records generated
from electronic records of title and registration maintained by the department; and
(4) Certification and audit by the department of data and scans submitted to the
department by an approved entity.
Any approved entity or other participant in the electronic title and registration
system shall submit electronic applications for original vehicle titles in a form and format
prescribed by the department. A participant shall electronically provide all documentation
or information required by the department to process the electronic title application,
including the electronic manufacturer's statement of origin or odometer disclosure
statement. The department shall verify the authenticity of the electronic in formation
before the electronic title is issued.
Section 10. That a NEW SECTION be added to chapter 32-3:
An entity must submit an application to become an approved entity for purposes
of this chapter. An approved entity may charge a customer a fee for services provided
under section 11 of this Act.
Section 11. That a NEW SECTION be added to chapter 32-3: 25.794.12 9 131
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An approved entity using the electronic title and registration system shall transmit
all application documents, required electronic signatures, and fees, through the system to
the department. Upon receiving an application transmitted through the electronic title and
registration system, the county treasurer shall, by close of business on the third business
day, either:
(1) Accept the application and forward it to the department; or
(2) Reject the application and return it to the approved entity.
Section 12. That a NEW SECTION be added to chapter 32-3:
The department shall enter into contracts with one or more qualified ERT providers
to integrate with the electronic title and registration system and other necessary, related
state systems to provide software and programs to approved entities, the departme nt,
and county treasurers, to facilitate electronic vehicle registration, titling, and filing of lien
statements.
An ERT provider that contracts with the department under this section may act on
behalf of the department and county treasurers in receiving, processing, and transmitting,
to the county treasurer, title and lien applications, title lien statements, and related
documents and fees. An ERT provider may charge the approved entity a fee for services
provided under this section.
Section 13. That a NEW SECTION be added to chapter 32-3:
Any reference in this chapter to a "certificate of title" also applies to an electronic
record of title under the electronic title and registration system required by § 32-3-69.1.
The department may allow a person to submit a document required under this chapter by
using electronic media deemed feasible by the department, instead of requiring an original
document. If a signature on a document is required by law and the document is submitted
electronically, the signature requirement is satisfied by an authenticated, electronically
submitted signature. An electronically submitted document, once accepted by the
department, is deemed the same as an original document and is admissible i n all
administrative, quasi-judicial, and judicial proceedings.
Section 14. That a NEW SECTION be added to chapter 32-3:
If a title is held electronically, no paper title will be printed, except in the following
circumstances: 25.794.12 10 131
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(1) The owner is relocating to another state, and there is no electronic system in place
to transfer the title electronically between the states;
(2) The owner has sold the titled property to a new owner in another state, and there
is no electronic system in place to transfer the title electronically between the
states; or
(3) The owner requests a paper title to be printed and pays the applicable fee under
this chapter.
The owner is required to submit an application to the department to have the paper
title printed pursuant to this section. The application must be in a form prescribed by the
department. If the title is subject to a lien, the requirements of § 32-3-70 must be met.
Section 15. That § 32-5-85 be AMENDED:
32-5-85. Two number plates must be issued, except that as to a motorcycle,
recreational vehicle, semitrailer, and trailer, as such terms are defined in § 32-3-1, one
number plate must be issued.
Section 16. That § 32-10-1 be AMENDED:
32-10-1. Terms used in this chapter mean:
(1) "Administrator," the secretary of revenue;
(2) "Commercial vehicle," any vehicle which is operated in interstate commerce in
furtherance of any commercial enterprise;
(3) "Department," the Department of Revenue;
(4) "Interstate commerce," the movement of a vehicle between jurisdictions but does
not include the movement of any vehicle which transports or is being used to
transport persons or property, the transportation of which originates in one
jurisdiction and passes into or through another jurisdiction or jurisdictions, for
delivery in the jurisdiction in which the transportation originated;
(5) "Jurisdiction," a state, district, territory, or possession of the United States, a
foreign country, and a state or province of a foreign country;
(6) "Motor vehicle," shall have the meaning ascribed to it by § 32-9-1;
(7) "Owner," as defined in subdivision § 32-3-1, except that for the purposes of
proportional registration of vehicles as authorized and provided in §§ 32-10-10 and
32-10-15 to 32-10-28, inclusive, "owner" means a person who holds a legal title
of a vehicle, or in the event a vehicle is the subject of an agreement for the
conditional sale thereof with the right of purchase upon performance of the 25.794.12 11 131
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conditions stated in the agreement and with an immediate right of possession
vested in the conditional vendee, or in the event while a vehicle is subject to a
lease with an immediate right of possession vested in the lessee, or in the event a
mortgagor of a vehicle is entitled to possession, then such conditional vendee,
lessee or mortgagee is considered to be the owner;
(8) "Person" shall have the meaning ascribed to it by § 32-9-1;
(9) "Preceding year," a period of twelve consecutive months fixed by the administrator
which period shall be within the sixteen months immediately preceding the
commencement of the registration or license year for which proportional
registration is sought; and the administrator in fixing such period shall make it
conform to the terms, conditions, and requirements of any applicable agreement
or arrangement for the proportional registration of vehicles;
(10) "Properly registered," as applied to place of registration:
(a) The jurisdiction where the person registering the vehicle has his legal
residence; or
(b) In the case of a commercial vehicle, the jurisdiction in which it is registered
if the commercial enterprise in which such vehicle is used has a place of
business therein, and, if the vehicle is most frequently dispatched, garaged,
serviced, maintained, operated, or otherwise controlled in or from such
place of business, and, the owner has assigned the vehicle to such place of
business; or
(c) In the case of a commercial vehicle, the jurisdiction where, because of an
agreement or arrangement between two or more jurisdictions, or pursuant
to a declaration, the vehicle has been registered as required by said
jurisdiction.
In case of doubt or dispute as to the proper place of registration of a vehicle, the
administrator shall make final determination, but in making such determination,
may confer with administrators of the other states or jurisdictions affected;
(11) "Vehicle" shall have the meaning ascribed to it by § 32-9-1.
Section 17. That § 32-14-11 be AMENDED:
32-14-11. No person may occupy a house trailer or a recreational vehicle as
defined by § 32-3-1 while it is being towed. A violation of this section is a petty offense.
This section does not apply to a recreational vehicle being towed by a truck, truck tractor,
or pickup with a fifth-wheel device, if the recreational vehicle is equipped with safety 25.794.12 12 131
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glazing materials wherever glazing materials are used in windows or doors, with an audible
or visual signaling device which a passenger inside the recreational vehicle can use to gain
the attention of the motor vehicle driver, and with at least one unobstructed exit capable
of being opened from both the interior and exterior of the recreational vehicle. The
requirement for safety glazing materials does not apply to vehicles manufactured prior to
July 1, 1977.
Section 18. That § 32-15-7 be AMENDED:
32-15-7. The windshield on every motor vehicle as defined by subdivision § 32-
3-1 except farm tractors and motorcycles, shall be equipped with a device for cleaning
rain, snow, or other moisture from the windshield, which device shall be operated by the
driver of the vehicle. No person may operate a motor vehicle upon the highways unle ss
such vehicle shall be equipped with such device in good working order capable of cleaning
the windshield thereof and which device shall provide the driver a clear view of the
highway. A violation of this section is a petty offense.
Section 19. That § 32-33-17 be AMENDED:
32-33-17. The driver of any single or combination vehicle weighing in excess of
ten thousand pounds gross vehicle weight, who fails to stop at or who knowingly passes
or bypasses any state weighing station, upon any public highway, when the station is open
and being operated by law enforcement officers or motor carrier inspectors, is guilty of a
Class 2 misdemeanor. This section does not apply to any recreational vehicle as defined
in § 32-3-1. For purposes of this section, a combination vehicle is any vehicle consisting
of two or more units including a truck, tractor, or towing vehicle, and one or more trailers.
Section 20. That § 37-5-13 be AMENDED:
37-5-13. Terms used in §§ 37-5-13 to 37-5-15, inclusive, mean:
(1) "Dealer," any person who receives machinery from a manufacturer under a
dealership contract and who offers and sells the machinery to the general public
from manufacturer authorized facilities in this state. The term, dealer, does not
include a single-line dealer or any person with total annual gross sales in this state
and elsewhere of one hundred million dollars or more of industrial and construction
equipment, attachments, replacement parts, and service related to the equipment,
from any one manufacturer or supplier of such equipment; 25.794.12 13 131
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(2) "Dealership contract," a written agreement or contract between a manufacturer
and dealer which fixes the legal rights and liabilities of the parties to such
agreement or contract;
(3) "Machinery," any farm vehicle as defined by § 32-3-2.4 or any off-road vehicle as
defined by § 32-3-1 or merchandise as defined in § 37-5-12.2;
(4) "Manufacturer," any person engaged in the manufacturing or distribution of
machinery including any person who acts for the manufacturer;
(5) "Single-line dealer," any person that has purchased seventy-five percent or more
of the dealer's total new product inventory from a single manufacturer of industrial
and construction equipment under agreements with that manufacturer and has a
total annual average sales of industrial and construction equipment volume for the
three previous years with that single manufacturer in excess of fifty million dollars
for the territory for which that dealer is responsible.
Section 21. That § 37-14-21 be AMENDED:
37-14-21. Except as otherwise agreed to in writing by the purchaser and seller,
or unless otherwise provided for by advertised or announced terms at the auction premises
on the day of the sale, if the purchaser of any property at an auction sale has not removed
the property from the auction premises within ninety days after the date of the sale or
has not otherwise taken physical possession of the property within ninety days after the
date of the sale, ownership of the property reverts to the seller, and the payment is
forfeited to the seller without further notice of action. This section does not apply to any
motor vehicle as defined in § 32-3-1 or to any state auction held pursuant to chapter 5-
24A. 25.794.12 14 131
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An Act to establish an electronic system for vehicle titles.
I certify that the attached Act originated in
the:
Senate as Bill No. 131
Secretary of the Senate
President of the Senate
Attest:
Secretary of the Senate
Speaker of the House
Attest:
Chief Clerk
Senate Bill No. 131
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2025 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2025
Governor
STATE OF SOUTH DAKOTA ,
ss.
Office of the Secretary of State
Filed ____________, 2025
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State