This bill amends the assessment methodology for owner-occupied single-family dwellings and nonagricultural properties in South Dakota. It introduces new definitions, including "assessment year" and "prior assessment year," and establishes that for the 2027 assessment year and beyond, the assessed value of these properties will be adjusted to the lesser of the fair market value or the prior year's assessed value increased by five percent. Additionally, every fifth assessment year, properties will be assessed at their fair market value, and certain provisions will not apply to new constructions or properties assessed under specific chapters.

The bill also updates the responsibilities of the Department of Revenue, allowing the secretary to promulgate rules regarding various assessment practices, including adjustments to property values as outlined in the new sections. The amendments aim to create a more consistent and fair assessment process for property taxes while ensuring that property owners are not subject to excessive increases in assessed value.

Statutes affected:
Introduced, 02/02/2026: 10-6-101
House Taxation Engrossed, 02/12/2026: 10-6-101
Senate Taxation Engrossed, 03/05/2026: 10-6-101, 10-6-119, 10-6-124