This bill amends existing laws regarding the limits on revenue increases from property taxes for taxing districts and school districts in South Dakota. Specifically, it modifies the percentage cap on revenue increases from property taxes, changing the limit from three percent to five percent for the years 2027 through 2031. This adjustment applies to the total revenue payable from taxes on real property, excluding certain levies, and allows for increases based on improvements, changes in use, annexation, and other specified factors. Additionally, it maintains exemptions for new taxing districts and school districts created or reorganized after specific dates.

Furthermore, the bill outlines that school districts may levy a tax for capital outlay purposes, with similar revenue increase limitations as those for taxing districts. The annual increase in revenue from this levy is also capped at five percent for the years 2027 through 2031, aligning with the changes made for taxing districts. The bill ensures that any increases in value from improvements to owner-occupied single-family dwellings that do not exceed a forty percent increase in value are not included in the revenue calculations. Overall, the bill aims to provide more flexibility for taxing and school districts in managing their property tax revenues while still imposing certain limitations.

Statutes affected:
Introduced, 01/18/2026: 10-13-35, 13-16-7