The amendment fundamentally **gutted and rewrote the bill** into a different approach—instead of using an "Olympic average" of the eight most recent assessment years to adjust property values, the new version caps annual assessments at the lesser of fair market value or the prior year's assessed value increased by five percent, with full revaluations required every fifth year. This **narrows and redirects** the original intent from a multi-year averaging method to a simpler annual cap-and-revaluation system, and the bill itself includes a warning that it "has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor."
26.428.39 26.428.40 101st Legislative Session 1253 2026 South Dakota Legislature House Bill 1253 HOUSE SENATE TAXATION ENGROSSED This bill has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor. Introduced by: Representative Odenbach Underscores indicate new language. Overstrikes indicate deleted language. An Act to adjust the assessment methodology for owner-occupied single-family 1 dwellings and nonagricultural property by considering previous years' property. 2 assessed values. 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4 3 Section 1. That § 10-6-101 be AMENDED: 5 4 10-6-101. Terms used in this chapter mean: 6 5 (1) "Assessment sample period," year," the most recent eight assessment years, including year in which real property is assessed, which immediately 6 precedes the year in which property taxes are due and payable; 7 the current assessment year; 8 (2) "Department," the Department of Revenue; 9 8 (2)(3) "Director," a county's director of equalization; 9 (4) "Prior assessment year," the assessment year immediately preceding the current 10 (4) "Olympic average", the arithmetic average of a set of values after removing the assessment year; 11 single highest and single lowest values from the set and averaging the remaining 12 values; and 13 (3)(5) "Tract," "lot," "piece," or "parcel," any contiguous quantity of land that is possessed 14 12 by, owned by, or recorded in the name of the same person. 15 13 Section 2. That a NEW SECTION § 10-6-119 be added AMENDED: 14 10-6-119. The director shall individually assess each tract of real property at its 15 fair market value, subject to chapter 10-6: the limitations provided in section 3 of this Act. 16 After annually In determining the fair market value of all property pursuant to § 10-17 6-105, property, the director may not adopt a 17 lower or different standard of value because it is to serve as a basis of taxation. The 18 director may not adopt as a criterion of value the price for which a tract of real property 19 would sell at a forced sale, or in the aggregate with all other tracts of real property in the 20 county. The director shall adjust the assessed value of each owner-occupied single-family 18 dwelling and nonagricultural property to equal the intertemporal average value of the 19 property. 20 For purposes of this section, if during the assessment sample period the property 21 had no change in its use or classification, or no addition, "intertemporal average value" 22 means the olympic average of determine the fair market value by appropriate consideration of 21 the property, as determined cost approach, the market approach, and the income approach to appraisal. The 22 director shall consider and document all elements of such approaches that are applicable 23 pursuant prior to § 10-6-105, during the assessment sample period. a determination of fair market value. 24 26.428.39 26.428.40 2 1253 Underscores indicate new language. Overstrikes indicate deleted language. For purposes Section 3. That a NEW SECTION be added to chapter 10-6: 1 Except as otherwise provided in sections 4 to 6, inclusive, of this section, if during Act, for the 2027 2 assessment sample period year and each assessment year thereafter, the director shall adjust the 3 assessed value of each property 1 had a change in its use classified as an owner-occupied single-family dwelling or classification, or had an addition, "intertemporal average value" 2 means 4 nonagricultural property, pursuant to § 10-6-110, to equal the olympic average of the lesser of: 5 (1) The fair market value of the property, as determined 3 pursuant to § 10-6-105, during all 10-6-119; or 6 (2) The assessed value of the assessment years, including property in the current 4 prior assessment year, increased by five 7 percent. 8 Section 4. That a NEW SECTION be added to chapter 10-6: 9 Notwithstanding section 3 of this Act, every fifth assessment year, the director 10 shall assess each owner-occupied single-family dwelling and nonagricultural property, 11 classified pursuant to § 10-6-110, at the property's fair market value determined pursuant 12 to § 10-6-119. 13 Section 5. That a NEW SECTION be added to chapter 10-6: 14 The provisions of section 3 of this Act do not apply to assessed value derived solely 15 from the new construction of, reconstruction of, improvements to, or additions to, real 16 property for the first assessment since the change new construction, reconstruction, 17 improvement, or addition was made. 18 Section 6. That a NEW SECTION be added to chapter 10-6: 19 The provisions of section 3 of this Act do not apply to property assessed under 20 chapters 10-28 to 10-38, inclusive. 21 Section 7. That § 10-6-124 be AMENDED: 22 10-6-124. The secretary of revenue the department may promulgate rules 23 pursuant to chapter 1-26 concerning the: 24 (1) Collection and tabulation of information required to determine median appraisal or 25 sales assessment ratio, and coefficient of dispersion; 26 (2) Criteria to be included in a compliance audit of assessment practices; 27 (3) Conditions under which a certificate of compliance may be issued to a county; 28 (4) Procedures for determining the use valuation of agricultural buildings and structures; 29 26.428.40 3 1253 Underscores indicate new language. Overstrikes indicate deleted language. (5) Procedures for determining the valuation of dwellings on agricultural land and 1 automobile garages or portions of buildings used as automobile garages; 2 (6) Application of cropland and noncropland income values; 3 (7) Application of soil classification of the property, or since the 5 addition standards; and 4 (8) Procedures for making adjustments to the property. value of agricultural land pursuant to 5 §§ 10-6-127 to 10-6-132, inclusive; and 6 An addition (9) Adjustment to an existing structure affixed to land, which results in an increase in 7 the assessed value of property pursuant to sections 3 to 6, inclusive, 7 of this Act. 8 Before the structure of forty percent or less, does not affect secretary promulgates any rules pursuant to subdivision (4) to (8), 9 inclusive, the period over 8 which secretary shall present the intertemporal average value is determined. 9 The adjustment in proposed rules to the taxable value of owner-occupied single-family dwellings Agricultural Land 10 Assessment Implementation and 10 nonagricultural property under this section may not result in an increase in taxes imposed Oversight Advisory Task Force established pursuant to 11 on agricultural property by any taxing district. § 10-6-134. 12