The proposed bill aims to limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural properties in South Dakota. It establishes that the assessed value of these properties cannot increase by more than three percent annually from the previous year's assessed value, with specific exceptions. If there is a change in ownership without a sale between a willing seller and buyer, the assessed value may exceed the three percent limit and must reflect the fair market value based on various valuation approaches. Additionally, if the property is sold in an arms-length transaction, the assessed value will equal the sales price. The bill also allows for further increases in assessed value if there are changes in property use or classification, or if there are additions or expansions to the property.

Furthermore, the bill amends existing law regarding the annual assessment of real property. It changes the language from "shall" to "must" in the requirement for annual listing and assessment of real property, clarifying that the value is determined based on the property's status as of November 1 preceding the assessment. It also specifies that the value of owner-occupied single-family dwellings and nonagricultural properties is subject to the limitations outlined in the new section of the bill.

Statutes affected:
Introduced, 01/28/2025: 10-6-105