Bill > SB191

This bill establishes a new property tax assessment framework for owner-occupied single-family dwellings in South Dakota, designed to limit annual property value increases and protect homeowners from unexpected tax hikes. Specifically, the bill caps annual property value increases at 3% for most properties, using a "base amount" determined either by the property's fair market value on November 1, 2020, or by the purchase price when a property changes ownership between 2020 and 2025. When a property is sold, it will be reassessed at its fair market value, and the new base amount cannot exceed the sales price. The bill allows for exceptions to the 3% cap for significant property improvements or changes in property use, such as additions that increase the property's value by more than 40%. Additionally, the legislation provides an exception for taxing districts, allowing them to potentially exceed standard mill rate limitations if their real property tax revenue does not exceed the 2025 tax year amount, adjusted annually by up to 3% or the index factor, plus growth from improvements, annexations, or property classification changes. The bill cites the Supreme Court case Nordlinger v. Hahn to emphasize its intent to stabilize property taxes while maintaining constitutional equal protection standards.

Budget and Finance, Government Affairs

https://sdlegislature.gov/#/Session/Bill/25925