This bill amends South Dakota's property tax assessment laws to limit annual valuation increases on owner-occupied single-family dwellings. Specifically, it establishes that the assessed value of such properties cannot increase by more than the index factor, starting from a base amount determined for the assessment year 2025 or any subsequent base year. The bill also mandates that when ownership of a dwelling changes, the property must be reassessed at its fair market value, with the base amount not exceeding the sale price. Additionally, it ensures that the limitations on the taxable value of these dwellings do not lead to increased taxes on nonagricultural or agricultural properties within any taxing district.

Furthermore, the bill introduces provisions that allow for increases in the base amount of owner-occupied single-family dwellings in cases of changes in property use or classification, as well as for additions or expansions. However, any increase in assessed value due to improvements is limited to the difference in value before and after the changes, and minor improvements that result in a value increase of 40% or less are excluded from this calculation. The bill also allows taxing districts to impose a tax levy that exceeds the usual mill rate limitations if it does not surpass the revenue from real property taxation in the 2025 tax year, adjusted for growth factors.

Statutes affected:
Introduced, 02/04/2026: 10-6-105