This bill amends South Dakota law regarding property tax revenue limits for taxing districts, specifically including school districts under these limitations for the first time. The annual increase in property tax revenues is now capped at two and one-half percent, down from the previous limit of three percent. The bill also clarifies that certain taxes, such as those levied under specific statutes, are excluded from this cap. Additionally, it allows taxing districts to exceed these limits under certain conditions, such as improvements to real property or scheduled payment increases on bonds.

Furthermore, the bill introduces provisions that enable taxing districts to increase their revenue from property taxes beyond the established limits for specific purposes, including paying principal and interest on bonds subject to referendum and court-ordered judgments. The language also specifies that newly created taxing districts will be exempt from these limitations for two years following their establishment. Overall, the bill aims to provide more structured control over property tax revenue increases while ensuring that essential funding for school districts and other taxing entities is maintained.

Statutes affected:
Introduced, 02/05/2025: 10-13-35
House State Affairs Engrossed, 02/21/2025: 10-13-35