Bill > HB1317

This bill amends South Dakota law regarding property taxation by removing a limitation on how much of an "unused index factor" a county or municipality can accumulate and use to increase property tax revenue. The "index factor" is a mechanism used to adjust property tax revenue based on growth and inflation, and the "unused index factor" represents the portion of this adjustment that a local government did not utilize in a given year. Previously, a county or municipality could only use unused index factors from the prior three years, and this amount was capped at the total from those three years or ten percent of the revenue, whichever was less. This bill eliminates that three-year lookback and the ten percent cap, allowing local governments to accumulate and use any unused index factor from 2024 onwards without a specific time limit or percentage restriction, thereby potentially increasing property tax revenue beyond what was previously allowed.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/27251