The bill amends Section 10-13-35 of South Dakota law to impose a limit on the annual increases of property tax revenues for certain taxing districts, including school districts. Previously, this section did not apply to school districts, but the new language removes that exemption. The total amount of revenue from property taxes within a taxing district may now increase by no more than two and one-half percent or the index factor, whichever is lesser, compared to the previous year's revenue. Additionally, the bill clarifies that certain tax levies are not subject to this limitation.

Furthermore, the bill allows taxing districts to exceed these limitations under specific circumstances, such as increases in revenue due to property improvements, annexation, or changes in property use. It also permits additional revenue increases for taxes levied to cover bond payments, scheduled payment increases on bonds, and court-ordered judgments against the district. The bill specifies that newly created taxing districts will 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