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Eliminate certain property taxes levied on owner-occupied single-family dwellings, and to increase certain gross receipts tax rates and use tax rates.

HB1019 eliminates property taxes on owner-occupied single-family homes by setting their school district mill levy to zero, starting in 2026. To make up for the lost tax revenue, the bill increases the gross receipts tax and use tax rates on businesses and purchases. The stated goal is to offset the lost homeowner property tax revenue so school districts receive the same total funding as before.

Reduce a maximum property tax mill levy on owner-occupied single-family dwellings for school district general funds, and to repeal certain sales tax exemptions.

This bill reduces the school property tax on owner-occupied single-family homes from $2.68 per $1,000 of value to $1.99 per $1,000 of value, starting with taxes payable in 2026. The bill also repeals certain sales tax exemptions to help offset the lost school funding from the property tax reduction.

Subject advertising services to a gross receipts tax, and to allocate proceeds to property tax relief.

This bill adds a gross receipts tax on advertising services, which are currently exempt from South Dakota's tax. Revenue from this new tax will be allocated to property tax relief for South Dakota residents.

Provide an exemption from certain property taxation for owner-occupied single-family dwellings, and to limit the taxes due on property over the previous year.

This bill creates two new property tax breaks for homeowners: a $100,000 exemption on the value of owner-occupied single-family homes, and a tax credit that caps annual property tax increases at 3% (unless the property changed use, was expanded, or the local taxing district voted to exceed tax limits). These changes reduce property taxes for individual homeowners but do not affect existing commercial or investment property taxation.

Reduce a limit on the annual increases of property tax revenues payable to certain taxing districts, and to subject school districts to a limit on property taxes collected in a year.

This bill lowers the annual property tax revenue growth limit for most taxing districts from 3% to 2.5%, making it harder for local governments to increase tax collections year-to-year. The bill also removes school districts from this revenue limit entirely, meaning they will now be subject to their own separate property tax collection limits instead of the general taxing district rules.

To reduce the growth in the assessed value of owner-occupied property tax assessments.

This bill limits how much the assessed value of owner-occupied homes can increase each year for property tax purposes. By capping this growth, homeowners would see slower increases in their property tax bills even if their home's market value rises significantly. The specific growth limit and how it applies would be detailed in the bill's implementation section.

To provide for an interim study regarding property tax reduction and preservation of the American dream to own a home.

This resolution creates a temporary legislative committee to study property tax issues and develop recommendations for reducing property taxes on homeowners. The committee will review state and local government spending to identify ways to provide tax relief, particularly for young families, middle-class homeowners, and retirees. This doesn't change existing law but directs lawmakers to investigate the problem and propose solutions during the interim period between legislative sessions.

Proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting the assessed value of real property and limiting real property taxes.

South Dakota voters will be asked whether to amend the state constitution to limit how much real property can be assessed for taxes and to cap the property taxes themselves. This joint resolution doesn't make the change directly—instead, it puts the question on the ballot so citizens can decide if they want these new limits added to the state constitution.

Provide property tax relief to certain senior owners of owner-occupied single-family dwellings.

Seniors age 65 and older who have owned their South Dakota home for at least 10 years and lived in the state for at least 25 years can apply for a property tax freeze that locks in their home's assessed value at its 2020 level or the level when they first qualify, whichever is later. This new program provides ongoing property tax relief by preventing further increases in their assessed home values, as long as they have no delinquent property taxes.

Provide a tax credit to limit the taxes due on property over the previous year.

Senate Bill 101 creates a new tax credit that limits how much property taxes can increase year-to-year, capping increases at 3 percent above the previous year's taxes. Property owners qualify for this credit automatically unless their property changed use, classification, or had additions/expansions in the previous year, with the county auditor reducing each taxing district's portion proportionally to bring total taxes down if they exceed the 3 percent threshold.

Reduce maximum values for certain property taxes levied on owner-occupied single-family dwellings, and to increase the rates for certain gross receipts taxes and use taxes.

This bill eliminates property taxes on owner-occupied single-family homes by setting the school property tax mill levy to zero for those properties, while raising sales taxes and other gross receipts taxes to make up the lost school funding. The tax increases on businesses and consumers are intended to fully replace the property tax revenue schools would have lost from this change, so school districts receive the same total funding as before.

Limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

This bill caps annual property tax increases on owner-occupied single-family homes and non-agricultural properties at 3 percent per year, with the starting value based on what the property was worth on November 1, 2020. When a home is sold, the assessment can reset to the new purchase price, but from that point forward the 3 percent annual cap applies. The change aims to protect homeowners from sudden jumps in property taxes caused by rising real estate values.

Freeze property tax revenues and assessments for two years.

For the next two years (2026-2027), South Dakota property tax revenues cannot increase at all, freezing them at current levels instead of allowing the usual increase of up to 3% or the inflation index. Starting in 2028, the normal tax revenue growth limits return, though taxing districts can still increase revenue above these caps to account for new property improvements, annexations, and other specified adjustments.

Reduce the growth in the assessed value of owner-occupied property, limit increases in certain property tax revenues, revise provisions regarding school district excess tax levies, and revise eligibility requirements for a property tax assessment freeze.

This bill limits how much the assessed value of owner-occupied homes can increase each year, reducing property tax growth for homeowners. The bill also changes rules about school district tax levies and adjusts who qualifies for the state's property tax assessment freeze program. These changes are designed to slow the rise in property taxes on primary residences in South Dakota.

Proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting to a flat rate the real property taxes.

This joint resolution asks South Dakota voters to amend the state constitution to allow real property taxes to be set at a flat rate instead of requiring them to be uniform across all properties in the same class. If approved by voters, this change would give the legislature flexibility to impose a single flat tax rate on real property rather than the current system where all properties of the same class must be taxed at the same percentage of their value.

Limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural property.

HB 1119 caps annual property tax assessment increases at 3% for owner-occupied homes and non-farm properties, even if the property's market value rises more. However, the 3% cap doesn't apply when a property changes ownership through a regular sale, when ownership transfers without a traditional sale, or when significant improvements are made to the property.

Distinguish between new construction and improvements to existing structures for purposes of calculating increases in revenue payable from property taxes.

When calculating property tax revenue increases from new development, South Dakota will now exclude improvements and additions made to buildings already on the land—only completely new construction will count toward triggering higher tax payments. This change applies to both state education finance formulas and local property tax assessment calculations, meaning homeowners and businesses that renovate or expand existing structures won't cause their properties to be classified as "new construction" for tax purposes.

Require a public hearing prior to a vote to impose an excess tax levy.

South Dakota taxing districts (like school districts and counties) must now hold a public hearing before they can vote to collect more property tax revenue than they did the previous year. The bill requires county auditors to calculate a "revenue-neutral rate" each year that shows what tax rate would produce the same revenue as last year, and any taxing district that wants to exceed that amount must first get approval from its governing body after a public hearing. This change gives taxpayers advance notice and a chance to be heard before their local government increases property tax collections.

Amend provisions pertaining to a school district's proposed opt out, capital outlay certificate, or other agreement.

This bill clarifies the timing and notice requirements for school districts that want to increase property taxes through an excess tax levy. The changes require school districts to specify how many years the tax increase will apply and ensure that public notices about proposed tax increases are published at least twice before an opt-out election occurs, rather than before the tax takes effect.

Revise property tax levies for school districts and to revise the state aid to general and special education formulas.

SB 55 reduces the maximum property tax rates that school districts can charge for their general funds starting in 2026, lowering the overall rate from $5.54 per thousand dollars of taxable value to $5.21, with proportional reductions for agricultural and owner-occupied residential properties. The bill also revises how the state calculates financial aid to school districts for general and special education programs. These changes affect property tax bills for school funding and adjust the balance between local property taxes and state education aid.

Amend the other revenue base amount available to certain school districts.

HB1183 adjusts how South Dakota calculates school funding for certain districts by modifying the "other revenue base amount" used in state education aid formulas. The bill refines the definition of "fall enrollment"—the student count that determines funding—by clarifying which students count toward a district's enrollment and how alternative instruction students are included in the calculation. This change affects how much state money school districts receive based on their student population.

Repeal a provision requiring the sale of property acquired by a tax deed.

This bill eliminates the requirement that anyone (except counties) who acquires property through a tax deed must sell it at public auction within one year. Instead, the property owner can keep the property without being forced to resell it. The bill also makes a technical update to clarify that tax deed holders have full ownership rights to the property.

Require the director of equalization to adjust certain agricultural land values.

This bill strengthens the Director of Equalization's authority to adjust agricultural land values by changing permissive language ("may") to mandatory language ("shall") when making adjustments to parcels. The bill also clarifies that agricultural land must be categorized as cropland or noncropland based on soil classification standards, with specific rules about how Class IV soil types can be reclassified between these categories each year.

Modify the maximum sparsity benefit a sparse school district is eligible to receive.

This bill increases the maximum sparsity benefit that sparse school districts can receive from $110,000 to $175,000 per fiscal year. Starting July 1, 2026, this maximum amount will automatically increase each year based on an inflation index to keep pace with rising costs.

Prohibit the use of drones for purposes of assessing real property for taxation, and to provide a penalty therefor.

This bill prohibits property tax assessors and their deputies from using drones or drone-gathered information when evaluating real property for tax purposes. Violating this prohibition is a Class 2 misdemeanor, which is a criminal offense.