This bill aims to limit the growth of assessed values for owner-occupied properties and restrict increases in property tax revenues over the next several years. Specifically, it establishes that for taxes payable in 2027 through 2031, the total assessed value of owner-occupied single-family dwellings in a county cannot increase by more than three percent from the previous year, with allowances for new improvements. Additionally, it amends existing laws to ensure that the total revenue from property taxes for taxing districts and school districts also cannot exceed a three percent increase annually during the same period, with certain exceptions for improvements and specific financial obligations.

Furthermore, the bill revises eligibility requirements for property tax assessment freezes, allowing individuals with household incomes below specified thresholds to qualify, while also introducing an annual adjustment for these income limits based on an index factor. It also modifies provisions related to school district excess tax levies, ensuring that any additional revenue generated is used solely for capital outlay purposes and does not count towards the maximum allowable transfer to the general fund. Overall, the legislation seeks to provide financial relief to homeowners and regulate the growth of property tax revenues in South Dakota.

Statutes affected:
Senate State Affairs Engrossed, 02/21/2025: 10-13-35, 13-16-7, 10-6A-2, 10-6A-3
Senate Engrossed, 02/26/2025: 10-13-35, 13-16-7, 10-6A-2, 10-6A-3, 10-12-43.1
House Engrossed, 03/11/2025: 10-13-35, 13-16-7, 10-6A-2, 10-6A-3, 10-12-43.1
Enrolled, 03/12/2025: 10-13-35, 13-16-7, 10-6A-2, 10-6A-3, 10-12-43.1