This bill amends Section 10-13-35 of South Dakota law to create an exception for improvement districts regarding the limit on revenue growth for property taxation. Specifically, it allows taxing districts to increase their revenue from taxes on real property by the percentage increase in value due to improvements or changes in use, with the exception of improvement districts under chapter 7-25A. For the years 2027 through 2031, any increase in revenue for these districts is capped at three percent.

Additionally, the bill clarifies that the revenue growth limitations do not apply to school districts and outlines various circumstances under which taxing districts can exceed the revenue limits, such as for bond payments or following the termination of a tax increment financing district. It also specifies that increases in value from improvements to owner-occupied single-family dwellings are excluded if they result in a value increase of forty percent or less.

Statutes affected:
Introduced, 02/04/2026: 10-13-35