This bill introduces a new tax credit for owners of real property in South Dakota, aimed at limiting the increase in property taxes from one year to the next. Specifically, property owners are entitled to a tax credit if the total taxes imposed by all taxing districts exceed 103% of the taxes from the previous year, excluding any taxes resulting from local decisions to exceed certain statutory limits.

However, the bill stipulates that property owners will not qualify for this tax credit if there has been a change in the use or classification of the property, or if there have been any additions or expansions to the property in the previous year. Additionally, the county auditor is tasked with applying the tax credit by proportionally reducing the taxes imposed on qualifying properties until the total amount due aligns with the specified threshold of 103% of the previous year's taxes.