If you live in a rural subdivision in South Dakota, you might live within a “Special Road District.” To most people, this is just a line item on a property tax bill. But behind that bill is a specific set of state laws—South Dakota Codified Law 31-12A—that serves as the “Operating Manual” for your neighborhood.
As we begin 2026, it is helpful to look back at why the South Dakota Legislature created this chapter and what they intended for our communities.
The Purpose: Local Solutions for Local Roads
The primary goal of the road district chapter was self-determination. The legislature recognized that county governments couldn’t possibly maintain every small gravel road or paved cul-de-sac in every rural subdivision.
By passing SDCL 31-12A, they gave neighbors a legal “toolkit” to:
- Incorporate: Form a legal entity that exists specifically to care for their shared infrastructure.
- Self-Govern: Elect a three-person Board of Trustees from among their own neighbors.
- Fund Maintenance: Create a transparent way to pool resources for snow removal, grading, and paving.
The Intent: Accountability and Transparency
The legislators who wrote this chapter didn’t intend for road districts to be complicated bureaucracies. They envisioned them as small, transparent cooperatives where neighbors worked together. The law includes several “pillars” to ensure this works:
- The Power of the Vote: Under the law, the power doesn’t belong to the board; it belongs to the Eligible Voters. Major decisions, like the election of trustees or the approval of certain financial obligations, are designed to happen in the light of day at an Annual Meeting.
- Trustees as Public Servants: Trustees are neighbors who step up to serve. They are granted specific powers to contract and maintain roads, but they are also “officers” of a political subdivision, meaning they are bound by the same Open Meetings and Public Records laws as the Governor or the State Legislature.
- Statutory Financial Tools: The law provides two primary ways to fund a district: the Levy (a general tax based on property value) and the Special Assessment (a charge for a specific improvement). These were designed to be the only tools used, ensuring that every dollar collected has a clear, legal definition.
Why the Law Matters Today
As rural South Dakota continues to grow in 2026, these districts are more important than ever. When a road district follows the “blueprint” of SDCL 31-12A, it creates a community where:
- Neighbors are informed because meetings are noticed and open.
- Money is spent wisely because financial records are open to inspection and copying.
- The Board is balanced because vacancies are filled promptly and fairly.
The “Road District Chapter” wasn’t written to be a barrier; it was written to be a bridge. It allows us to have the roads we want while maintaining the transparency and fairness we deserve as South Dakota taxpayers.
Knowing the law is the first step in ensuring your neighborhood remains a place where “self-governance” actually works.
The Case for Cooperation: Why SDCL 31-12A May Not Be Necessary
While SDCL 31-12A provides a legal “blueprint” for incorporating a road district, many South Dakotans are asking a valid question: Is it actually necessary? For decades, rural neighbors have maintained their shared roads through simple, voluntary cooperation.
When you move from a “handshake agreement” to a formal “Governmental Subdivision,” you aren’t just getting a road maintainer—you are getting a new layer of taxation, regulation, and potential conflict.
The Myth of the “Required” District
The statute uses the word “desirable,” not “required.” There is no law in South Dakota that says neighbors must form a taxing district to keep their roads clear. Many of the most well-maintained rural roads in our state are managed by informal associations or simple cost-sharing agreements between neighbors.
1. The High Cost of “Free” Government
The moment you incorporate under SDCL 31-12A, you introduce “Administrative Overhead.” Suddenly, your tax dollars aren’t just going toward gravel and snow plows. They are going toward:
- Legal Fees: To draft bylaws and defend the board.
- Insurance Premiums: To protect trustees from liability.
- Administrative Expenses: For notice postings, filings, and county auditor fees.
In many small districts, a significant percentage of the “Special Maintenance Fee” or “Levy” is swallowed up by the cost of simply existing as a government entity before a single pothole is filled.
2. Loss of Neighborly Flexibility
In an informal arrangement, if a neighbor is going through a hard time, the community can choose to cover their share of the gravel. In a formal Road District, that neighbor becomes a “Delinquent Taxpayer.”
The board loses the ability to be “neighborly” because they are bound by rigid state statutes. The “Closed Loop” often replaces common-sense cooperation with “Good Standing” clauses and legal threats, turning friends into adversaries.
3. The “Unchecked Power” Risk
As we have seen across the state in 2026, once you grant a board the power to tax and meet, that power is very difficult to reel back in. Informal associations require consensus; if people don’t like the plan, they don’t chip in.
A Road District board, however, can make decisions in a quorum of two, spend “millions” in unauthorized fees, and leave residents with no recourse but to hire expensive private attorneys.
The Private Alternative
Before jumping into incorporation, landowners should consider the benefits of Private Maintenance Agreements:
- No Tax Lien Power: Neighbors contribute based on trust and shared benefit, not the threat of a county tax sale.
- Total Transparency: There are no “Ministerial Meetings” or “Exempt Records.” Everyone involved sees every receipt because it’s their own private money.
- Simplicity: No need for oaths, state audits, or election clerks.
Conclusion
While the legislators of 1977 thought they were offering a helpful tool, SDCL 31-12A often serves as a roadmap to bureaucracy. If you have neighbors who can talk at the mailbox and a tractor with a blade, you might already have everything you need. Sometimes, the best way to maintain a road is to keep the government off of it.