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eliminate a limit on the accumulation of the unused index factor for property taxation.

South Dakota counties and cities can currently carry forward unused property tax growth allowance (the "index factor") from up to three prior years, but only up to 10 percent of their revenue. This bill removes that three-year limit and the 10 percent cap, allowing counties and cities to accumulate and use unused growth allowance from all prior years going back to 2024. This gives local governments more flexibility to increase property tax revenue in future years by drawing on growth they didn't use in the past.

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

Starting in 2027, this bill lowers the maximum property tax rate that school districts can charge on residential homes while adjusting rates for agricultural land and other properties. The new limits set the general school fund levy at $4.87 per $1,000 of property value (down from the previous rate), with homeowners paying just $0.67 per $1,000 on owner-occupied homes and farmers paying $1.05 per $1,000 on agricultural land. The bill also changes how state education funding formulas work to account for these new property tax limits.

terminate certain school district excess tax levies.

South Dakota school districts can no longer collect excess property tax levies that were approved before July 1, 2002—these old levies are permanently eliminated starting in 2026. This ends tax collection authority that some districts have held for over two decades, affecting any remaining schools still using these older approval mechanisms to fund operations.

provide a tax credit for owner-occupied property, to make an appropriation therefor, and to transfer moneys to the general fund.

South Dakota homeowners who own single-family houses will receive a property tax credit of up to $500 on their 2027 tax bills. The state will fund this tax credit by transferring $101 from the housing infrastructure fund to the general fund and appropriating $202 total from the general fund and budget reserve fund to the Department of Revenue to cover the lost tax revenue.

limit the annual increase in assessed value of each owner-occupied single-family dwelling.

Starting in 2027, South Dakota counties cannot increase the total assessed value of owner-occupied single-family homes by more than 3% per year, though they can add more if new improvements are made to those homes or if properties are newly classified as owner-occupied dwellings. This caps how much property tax assessments can rise annually for homeowners, even if the overall housing market appreciates significantly. The limit applies through 2031 and doesn't override other state law requirements for property value adjustments.

reduce certain property taxes for owner-occupied property, 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 their school mill levy to zero, starting in 2027. To replace the lost property tax revenue for schools and fund state employee and Medicaid provider pay increases, the bill raises sales tax and gross receipts tax rates across the state. The changes are designed to shift the tax burden from homeowners to consumers making purchases.

reduce to zero mill levies for property taxation.

South Dakota property owners would stop paying most local property tax mill levies, which currently fund county buildings, schools, libraries, and other services—instead, the state would appropriate money to local governments to cover these expenses. The bill eliminates or reduces to zero the mill levies that counties, schools, and other political subdivisions currently use to fund their operations. This represents a major shift from local property taxation to state-level funding for local services.

authorize the imposition of a county option gross receipts tax to reduce owner-occupied property taxes.

Counties can now choose to impose a new tax on gross receipts (money businesses take in) to help reduce property taxes on homes that owners live in. The bill requires property tax bills to separately show homeowners how much of their property tax reduction comes from this new county gross receipts tax, starting in 2028. This gives counties a new tool to shift some tax burden from homeowners to businesses.

create the property tax local effort replacement fund, to reduce certain property taxes, and to increase the rates for certain gross receipts taxes and use taxes.

SB 99 creates a new fund to help replace property tax revenue by increasing sales taxes on certain goods and services, while reducing school property taxes—particularly eliminating taxes on owner-occupied homes starting in 2027. The bill modifies South Dakota's gross receipts tax and use tax rates across multiple categories to generate revenue for this replacement fund. Essentially, it shifts some school funding from property taxes to sales taxes, with homeowners seeing the biggest property tax relief.

deposit certain tax revenues into a homeowner tax reduction fund.

Starting July 1, 2027, South Dakota will redirect a portion of tax revenue from sales taxes, use taxes, and other business taxes into a new homeowner tax reduction fund instead of putting all that money in the general fund. Each year, the state treasurer must deposit whichever is greater: $100 million or a small percentage (three-tenths of one percent divided by the applicable tax rate) of the previous year's tax collections from these sources. This change only takes effect if a related bill (Senate Bill 125) also becomes law.

establish the homeowner tax reduction fund.

South Dakota is creating a new "homeowner tax reduction fund" in the state treasury to help lower property taxes for people who own single-family homes. The Department of Revenue will manage the fund, and any money set aside for it must stay in the fund rather than being transferred elsewhere, though the Legislature will decide how much to spend from it each year through the budget process.

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

This bill creates a new property tax relief program for senior homeowners in South Dakota. Seniors age 65 and older who have owned their single-family home for at least 10 years, lived in South Dakota for at least 25 years, and have no unpaid property taxes can apply to freeze their home's assessed value at its 2020 level (or the level when they first qualified, whichever is later), preventing future property tax increases on that home.

establish a new fund to provide property tax relief.

South Dakota would create a new Property Tax Relief Fund administered by the Department of Revenue to help reduce property taxes for homeowners and businesses. Starting in 2026, the state would deposit 25% of any year-over-year increase in general fund revenue into this new fund, with the Legislature deciding how to distribute those funds to local governments to lower their property tax levies.

establish the homeowner tax reduction fund.

South Dakota creates a new homeowner tax reduction fund in the state treasury to provide property tax rebates for people who own single-family homes. The Department of Revenue will manage the fund, and any interest earned stays in the fund rather than going elsewhere. Money can only be spent from this fund through the state budget process and cannot be transferred to the general fund.

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

South Dakota homeowners will see a cap on how much their property tax assessments can increase each year—limited to 3% annually for owner-occupied single-family dwellings, with the increases calculated from a base value set in 2026. When a home is sold, it will be reassessed at current market value to establish a new base, but future increases are again capped at 3% per year. This change protects long-time homeowners from sharp tax jumps due to rising real estate values, similar to how some other states limit property tax growth.

impose a transaction tax and dedicate revenues collected to supplant certain property taxes, and to provide a penalty therefor.

This bill creates a new transaction tax in South Dakota and uses the revenue collected to reduce property taxes on homes, farmland, and other property across the state. The tax revenues will first reduce property taxes on owner-occupied homes statewide, then on agricultural land if money remains, and finally on other property—all proportionally across counties. The bill requires county auditors to report current property tax amounts to the state so the Department of Revenue can distribute replacement funds fairly.

create the homeowner property tax reduction fund, and to transfer moneys to the homeowner property tax reduction fund.

This bill creates a new state fund dedicated to reducing property taxes on owner-occupied homes by lowering the education levy portion of property tax bills. Starting August 1, 2027, a small percentage of revenue from several state taxes will be deposited into this fund instead of going to the general fund, and the money will be used specifically for homeowner property tax relief. The Department of Revenue will manage the fund, which cannot be transferred to the general fund and must be appropriated through the state budget.

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.

This resolution asks South Dakota voters to approve a constitutional amendment that would change how real property is taxed and assessed. The amendment modifies language in the state constitution to allow the Legislature to limit assessed values of real property and impose caps on real property taxes, moving away from the current system where property tax valuations cannot exceed actual property value. If approved by voters, this would give the state more flexibility in controlling property tax rates and assessments.

proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, resetting, then limiting property taxes to a flat rate, until adjusted when sold.

This joint resolution asks South Dakota voters to amend the state constitution to reset and freeze property tax rates at a flat amount, with those rates only increasing when a property is sold. The amendment changes the current system where property taxes are uniformly calculated based on assessed property values, replacing it instead with a fixed-rate model that stays the same until ownership changes.

proposing and submitting to the voters at the next general election, an amendment to state law to reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

South Dakota voters would decide whether to reduce property taxes on owner-occupied homes while increasing sales taxes on certain goods and services to offset the lost revenue. The proposal would lower the school property tax rate for homeowners from $2.51 per $1,000 of home value to essentially zero, while raising gross receipts and use tax rates elsewhere in state law.

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

South Dakota property owners will get a cap on how much their annual property tax assessments can rise—limited to 3 percent per year for owner-occupied homes and non-agricultural property. However, this cap resets to fair market value if the property is sold, changes use, or gets a major addition or expansion (over 40 percent increase in value). This change makes property tax bills more predictable for homeowners, though it could affect county tax revenues.

authorize the establishment of municipal property tax rebate programs.

South Dakota cities can now create property tax rebate programs that give homeowners money back on their municipal property taxes if they meet criteria set by the city. Cities that establish such a program must give rebates to anyone who qualifies under the rules the city creates. This is a new option for municipalities—they're not required to offer rebates, but they now have the legal authority to do so.

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

This bill caps how much the assessed value of owner-occupied single-family homes can increase each year—limiting it to the state's inflation index factor—while allowing reassessment at fair market value when the home is sold. The cap starts with a baseline established for the 2025 assessment year and protects homeowners from steep annual property tax increases due to rising home values. The bill also ensures that this valuation limit doesn't shift the tax burden onto other property owners or agricultural land.

adjust a limit on the percentage increase in revenue payable from property taxes.

SB 97 increases the cap on how much additional property tax revenue certain South Dakota taxing districts can collect from new improvements and property changes—raising the limit from 3% to 5% for the years 2027 through 2031. This change allows local governments (except schools) to collect more tax revenue when property values increase due to new construction or other improvements, though they still cannot exceed the basic 3% revenue growth limit or the index factor in other circumstances.

make an exception for improvement districts from a limit on revenue growth for purposes of property taxation.

South Dakota has a law that limits how much property tax revenue most taxing districts can collect year-to-year, but this bill creates an exception for improvement districts (special districts that fund infrastructure like roads or water systems under Chapter 7-25A). Improvement districts will no longer be subject to the three-percent revenue cap that applies to other taxing districts for the years 2027-2031.

lower a maximum limit on the tax increment base value.

This bill lowers the maximum limit on how much taxable property value can be included in tax increment financing districts from 10 percent to 2.5 percent of a political subdivision's total assessed property value. Tax increment financing districts are used by cities, towns, and counties to fund development projects, and this change makes it harder for them to create or expand these districts by significantly reducing the allowed property value threshold.

increase the income limits for a property tax assessment freeze.

This bill raises the income limits for homeowners to qualify for South Dakota's property tax assessment freeze, increasing the threshold from $55,000 to $65,000 for single-person households and from $65,000 to $85,000 for multi-person households. Starting in 2027, these income limits will automatically increase each year based on inflation (whichever is higher: the consumer price index or the change in Social Security payments). This makes it easier for more moderate-income homeowners to freeze their property tax assessments on their primary residences.

increase a limit on video lottery gaming, and to deposit moneys into a new fund.

SB 226 increases the maximum bet allowed on video lottery machines from $2 to $5 per game and creates a new "residential tax reduction fund" to provide property tax relief for homeowners, funded by redirecting video lottery revenues that exceed $165 million annually. The bill changes how the state's share of video lottery profits is distributed—instead of all profits going to the general fund, any amount above $165 million per year will be deposited into this new property tax relief fund.

eliminate a limit on the accumulation of the unused index factor for property taxation.

South Dakota counties and municipalities currently can only use unused property tax growth allowance (called the "index factor") from the previous three years, but this bill removes that time limit so they can accumulate and use this unused growth allowance indefinitely. The bill also requires county auditors to track the total amount of unused index factor that has accumulated since 2024. This gives local governments more flexibility to increase property tax revenue in future years using growth allowances they didn't use in the past.

modify the requirements for a petition to refer an excess tax levy of a school district to a vote.

School districts currently can impose an excess tax levy (additional property tax) with a two-thirds board vote, and this bill modifies the petition process that allows taxpayers to refer such levies to a public vote. The specific changes to the petition requirements are shown in the amended section, though the bill text excerpt provided doesn't clearly display those petition-related modifications due to formatting.

amend certain provisions pertaining to special education funding.

HB 1098 adjusts how South Dakota funds special education by establishing a new disability category called "Level six disability" for students requiring prolonged assistance, and it sets the special education levy at $1.262 per $1,000 of property valuation starting in 2026. The bill also creates a mechanism to reduce school district levies if local funding grows faster statewide than the actual increase in special education needs, keeping funding growth in line with demand.

require an election for an excess tax levy of a school district.

Currently, school districts can impose excess property tax levies with just a two-thirds vote of their school board, but this bill requires school districts to hold a public election before imposing or increasing an excess tax levy. The bill maintains existing rules about when districts must announce the tax increase in newspapers, but adds the requirement that voters must approve the excess levy through an election before it takes effect.

remove the five percent calculation requirement from the county budgetary process.

This bill removes a five percent calculation requirement that counties previously had to apply when setting their budgets and tax levies. Counties will now calculate tax levies based directly on the difference between their budgeted expenses and expected revenue, without the mandatory five percent adjustment. The change simplifies the county budgetary process by eliminating an outdated calculation step.

provide for compensation to counties for administering tax increment financing districts created by a municipality.

Counties can now deduct their administrative costs from tax increment financing revenues before passing the money to municipalities that created these districts. This change applies both when counties initially collect the tax increments and when they deposit remaining funds into special district accounts. The bill ensures counties are compensated for the work of managing these tax increment financing districts.

provide a property tax credit for the payment of nonpublic school tuition.

South Dakota property owners can now receive a credit on their school district property taxes if they pay tuition for a child (ages 5-18) attending a nonpublic school in the state. The credit is limited to the lesser of 80% of their school district taxes or $1,000 per year, and the child does not need to be the property owner's own child to qualify. This creates a new tax benefit for families supporting private school education.

lower the cost threshold at which a tax increment finance base must be redetermined.

This bill lowers the threshold for when cities must recalculate their tax increment finance base when a development project costs more than originally planned. Instead of allowing cities to skip recalculation when extra costs are 35% or less above the original plan, the bill reduces that exemption threshold to 15%, meaning recalculation will be required more often when project costs increase.

remove the authorization to issue grants as part of a tax increment financing district.

This bill removes the ability of tax increment financing districts to issue grants to developers or other organizations as part of their financing activities. The changes eliminate the definition of "grant" from state law and streamline related provisions, meaning cities and counties can no longer use tax increment financing district funds to directly transfer money or property to outside parties for development projects.

update provisions related to tax increment financing districts.

This bill updates tax increment financing (TIF) district rules by clarifying how newly constructed structures are valued for taxes and preventing counties from using discretionary assessment formulas for properties within TIF districts. The changes ensure that TIF districts operate under consistent valuation rules rather than allowing counties to reduce assessed values for new construction in those areas.

amend the school funding formula to provide for the use of an average fall enrollment when determining local need.

School districts will now use an average of fall enrollment figures (instead of a single snapshot) when the state calculates how much education funding each district receives. This change affects how the state determines each district's "local need" for funding under South Dakota's school finance formula, potentially smoothing out enrollment fluctuations throughout the school year.

create a new class of nonagricultural property for purposes of taxation, and to provide a penalty therefor.

South Dakota currently classifies property into two tax categories (agricultural and owner-occupied homes), but this bill creates a new "nonagricultural property" classification that splits commercial and investment properties into two subcategories based on who owns and operates them. The bill requires tax assessors to identify which nonagricultural category each property falls into when listing properties for taxation. This reorganization allows the state to potentially apply different tax rates or rules to commercial properties depending on whether they're investor-owned or owner-operated businesses.