This bill aims to limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural property in South Dakota. It establishes that the assessed value of such 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 due to changes in property use or classification, or for any additions or expansions.

The bill amends existing law to clarify the annual assessment process for real property, specifying that all real property must be listed and assessed annually, with the assessed value determined as of November 1 of the preceding year. The language changes include replacing "shall" with "must" to emphasize the requirement and adding provisions that specifically address the value limitations for owner-occupied single-family dwellings and nonagricultural properties as outlined in the new section.

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