This bill introduces a new tax credit for owners of real property in South Dakota, aimed at limiting property taxes to a maximum increase of 3% over the previous year's total taxes imposed by all taxing districts. Specifically, if the total taxes exceed this threshold, property owners are entitled to a tax credit, excluding any taxes resulting from local decisions to exceed established limits. The bill also 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 bill outlines the process for applying the tax credit. After the county auditor calculates the levies imposed by all taxing districts, the tax credit will be proportionally applied to reduce the taxes on qualifying properties until the total amount due aligns with the 3% increase cap. This ensures that property owners are not burdened with excessive tax increases while maintaining the integrity of local funding mechanisms.