The bill amends South Dakota's property taxation laws by removing the limit on the accumulation of unused index factors for property taxation. Specifically, it modifies Section 10-13-35.4 to require the county auditor to calculate the maximum revenue that a county or municipality may request based on growth and the index factor, while also showing any unused index factor accumulated since 2024. The previous language that specified the calculation would exclude the accumulative percent of the unused index factor has been deleted, and the new language clarifies that this calculation must include the unused index factor.

Additionally, Section 10-13-35.5 is amended to allow counties or municipalities to increase the total amount of revenue payable from taxes on real property by utilizing any accumulated unused index factor. The previous restriction that limited this increase to the unused index factor from the prior three years has been removed, allowing for greater flexibility in revenue generation. The bill aims to provide local governments with more resources by eliminating the cap on unused index factors, thereby potentially increasing funding for public services.

Statutes affected:
Introduced, 01/06/2026: 10-13-35.4, 10-13-35.5