This bill amends South Dakota's property tax assessment laws to limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural properties. Specifically, it modifies section 10-6-105 to state that while all real property must be assessed annually based on its value as of November 1, the assessed value of owner-occupied single-family dwellings and nonagricultural properties cannot increase by more than three percent each year. This limitation is designed to provide financial predictability for homeowners and property owners in these categories.

Additionally, the bill introduces a new section that outlines specific circumstances under which properties may be assessed at their fair market value, overriding the three percent cap. These circumstances include changes in ownership, changes in the classification or use of the property, or significant additions or expansions to the property. However, it clarifies that minor improvements resulting in a fair market value increase of forty percent or less do not qualify as significant expansions, and renovations of existing structures are not considered additions.

Statutes affected:
Introduced, 01/07/2026: 10-6-105