The bill amends South Dakota property tax laws by removing the limit on the accumulation of unused index factors for property taxation. Specifically, it modifies Section 10-13-35.4 to require the county auditor to calculate the maximum revenue that a county or municipality may request based on growth and the index factor, while also showing any unused index factor accumulated since 2024. The previous language that specified the calculation would exclude the accumulative percent of the unused index factor has been deleted, allowing for a clearer understanding of how unused factors are accounted for.

Additionally, Section 10-13-35.5 is amended to allow counties or municipalities to increase the total amount of revenue from property taxes by utilizing any accumulated unused index factor without the previous limitation of only considering the prior three years. The previous restriction that capped the increase to the lesser of the prior three-year index factor total or ten percent has been removed, providing more flexibility for local governments in managing their tax revenues.

Statutes affected:
Introduced, 02/04/2026: 10-13-35.4, 10-13-35.5