This bill mandates that taxing districts in South Dakota hold a public hearing before increasing property tax revenues beyond a calculated "revenue-neutral rate." The revenue-neutral rate is defined as the tax rate that would generate the same property tax revenue as the previous year, based on the current year's total taxable assessed valuation. The county auditor is responsible for calculating this rate annually and must include it in the notice of estimated assessed valuation provided to each taxing district. If a taxing district wishes to exceed this rate, it must notify the county auditor and publish a notice of intent to hold a public hearing at least ten days in advance, detailing the proposed tax rate and the revenue-neutral rate.

During the public hearing, which must occur between August 20 and September 20, the governing body of the taxing district will hear from taxpayers before voting on whether to exceed the revenue-neutral rate. A majority vote is required to approve any tax levy that exceeds this rate. Additionally, if a taxing district levies taxes above the revenue-neutral rate without following the outlined procedures, it must refund the excess amount to taxpayers. This legislation aims to enhance transparency and public participation in the property tax levy process.