The proposed joint resolution seeks to amend Article XI of the South Dakota Constitution by introducing a flat rate limit on real property taxes. This amendment aims to ensure equitable taxation across all property types and prevent any property from escaping taxation. It empowers the Legislature to classify property for taxation purposes and mandates that taxes be uniform within each class. The resolution specifies that taxes must be levied for public purposes only and allows for the consideration of gross earnings and net incomes in determining property valuations.

Under the new provisions, for taxes payable in 2028, the maximum ad valorem taxes on real property will be capped at the lesser of the tax due in 2027 or a percentage of the most recent sales price of the property. This percentage is set at one percent for properties owned by state residents for at least half of the previous year and two percent for non-residents. For subsequent years, the maximum tax amount will not exceed the greater of the previous year's taxes or the applicable percentage of the most recent sales price if ownership changes. This amendment will be presented to voters at the next general election for approval.