The bill amends South Dakota law regarding property tax revenue limits for taxing districts, specifically including school districts under these limitations for the first time. It establishes that the total amount of revenue from property taxes within a taxing district may increase by no more than two and one-half percent or the index factor, whichever is lesser, compared to the previous year's revenue. The bill also clarifies that certain taxes levied under specific statutes are exempt from these limitations.

Additionally, the bill allows taxing districts to exceed the revenue limitations for taxes levied to cover principal, interest, and redemption charges on bonds that are subject to referendum, as well as for scheduled payment increases on bonds and court-ordered levies for judgments against the district. The previous exemption for newly created taxing districts is modified, allowing them to be exempt from these limitations for two years following their establishment.

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