This bill aims to stabilize property taxes for owner-occupied single-family dwellings in South Dakota by limiting annual valuation increases to no more than three percent. It establishes a "base amount" for property assessments, which is determined by the fair market value of the property as of November 1, 2020, or the value at the time of ownership transfer, with specific conditions outlined for subsequent assessments. The bill also mandates that any reassessment following a change in ownership must reflect the fair market value, ensuring that the assessed value does not exceed the sales price. Additionally, it includes provisions to prevent the limitation on taxable value from resulting in increased taxes on nonagricultural or agricultural properties.

Furthermore, the bill allows for exceptions to the valuation limitations in cases of property use changes or expansions, specifying that increases in assessed value due to improvements must be calculated based on the difference in property value before and after the changes. It also introduces a new provision that permits taxing districts to impose a tax levy exceeding the usual mill rate limitations if it does not surpass the revenue from real property taxation in the 2025 tax year, adjusted for certain growth factors. This comprehensive approach seeks to balance the interests of homeowners with the financial needs of taxing districts.

Statutes affected:
Introduced, 02/03/2025: 10-6-105
Senate Taxation Engrossed, 02/21/2025: 10-6-105
Senate Engrossed, 02/26/2025: 10-6-105
House State Affairs Engrossed, 03/06/2025: 10-6-105