This bill aims to limit annual valuation increases on owner-occupied single-family dwellings in South Dakota, ensuring that property tax assessments are based on purchase price rather than current market value. It establishes that the assessed value of such properties cannot increase by more than three percent annually, starting from a base amount determined for the assessment year 2026 or any subsequent base year. The bill also outlines the process for reassessing properties upon a change in ownership, ensuring that the new base amount does not exceed the sales price of the property. Additionally, it defines "base amount" and provides specific criteria for determining it based on fair market value and previous assessments.

Furthermore, the bill allows for increases in the assessed value above the three percent limitation in cases of changes in property use or classification, as well as for additions or expansions to the property. It specifies that improvements resulting in a valuation increase of forty percent or less will not affect the assessed value. Additionally, the bill provides a provision for taxing districts to impose a tax levy that exceeds the usual mill rate limitations, as long as the revenue does not surpass the amount collected in the 2026 tax year, adjusted for certain growth factors.

Statutes affected:
Introduced, 02/03/2026: 10-6-105