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 in a voluntary transaction. Additionally, it includes provisions to prevent the limitation on taxable value from causing tax increases on other properties within the taxing district.

Furthermore, the bill introduces exceptions for taxing districts regarding mill rate limitations, allowing them to impose higher tax levies if the revenue does not exceed the amount collected in the 2025 tax year, adjusted for certain growth factors. It also allows for increases in assessed value above the three percent limit in cases of property use changes or expansions, with specific criteria for how such increases are calculated. Overall, the legislation seeks to protect homeowners from sudden tax increases while ensuring compliance with constitutional protections.

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