Search Bills

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.

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

This bill removes the requirement that certain officers in third-class municipalities—the clerk, director of equalization, treasurer, and marshal—take an oath of office and provide a financial undertaking (a guarantee) to the Board of Trustees. The bill streamlines municipal procedures by eliminating these formal requirements that were previously mandated within ten days of an officer taking their position.

Eliminate the cap on assessment amounts for road improvements.

This bill removes the two-dollar-per-front-foot annual cap that currently limits how much property owners can be assessed for road improvements in South Dakota. Instead of being restricted to that fixed amount, county supervisors will now be able to assess properties for whatever amount they determine is necessary for road repairs and improvements, though the assessment still cannot exceed the amount requested in the original petition. This gives local governments more flexibility to fund road maintenance and upgrades based on actual costs rather than a statutory limit.

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.

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.

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.

Authorize the cooperation of counties for purposes of operating an office of county director of equalization.

Counties can now jointly operate a single office of county director of equalization instead of each county maintaining its own separate office. This change allows neighboring counties to enter into cooperative agreements to share the costs and responsibilities of property assessment services. The bill modifies the requirement that each organized county must have its own independent equalization office.

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.

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.

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.

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.

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.

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.

Revise the requirements for content reported on a property tax bill.

Property tax bills in South Dakota must now include specific information in at least 14-point font: a breakdown of taxes by levy, a description of each levy, the tax total for each taxing district, and the percentage change from the previous year. The bill also requires clearer labeling of any taxes resulting from local decisions to exceed state tax increase limits, marked with asterisks and explained with a specific notice to taxpayers.

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.

Require an affidavit of succession for purposes of succeeding to the ownership of an abandoned mineral interest.

When a surface owner wants to take over an abandoned mineral interest, this bill requires them to file an additional legal document called an "affidavit of succession" with the county register of deeds, in addition to the existing requirements of publishing notice and mailing notice to the mineral interest owner. The bill also clarifies that failing to file a claim within the original deadline doesn't automatically abandon a mineral interest if the owner files within 60 days after the notice period ends.

Clarify provisions regarding tax deeds.

SB 90 clarifies the rules for what happens when someone buys property through a tax deed sale, confirming they get full ownership while remaining responsible for any unpaid state or county taxes and certain special assessment liens on that property. The bill also clarifies how the money from a tax deed sale gets distributed—first covering the county's costs and taxes owed, then returning any leftover money to the previous owner or, if they can't be found within 180 days, sending it to the state's unclaimed property fund.

Add questions about historical property to seller's disclosure statement.

SB171 requires sellers to answer additional questions about whether a property has historical significance or is listed on any historical registers as part of the standard property disclosure form they give to buyers. This change adds transparency to real estate transactions by ensuring potential buyers know if a property has special historical status that might affect its value, restrictions, or maintenance requirements.