South Dakota Senate Bill SJR503

South Dakota 2023 Regular Session

• Introduced: 1/26/23
• Refer: 1/26/23

Caption

Proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting the amount of ad valorem tax on real property, and limiting the increase in the assessed value of real property.

Impact

The proposed amendment would significantly reform how property taxes are calculated and imposed in South Dakota. By limiting both the rate of tax and the increase in assessed values, SJR503 aims to provide financial relief to property owners and stabilize their tax liabilities. This could potentially lead to a redistribution of tax burdens, where property owners might feel less pressured by rising property values, thus appealing to a broad base of voters concerned about affordability in real estate.

Summary

SJR503 is a Senate Joint Resolution proposing an amendment to the South Dakota state constitution, specifically aimed at modifying ad valorem taxes on real property. This resolution suggests limiting the maximum amount of ad valorem tax assessed on real property to one percent of its assessed value. Furthermore, it seeks to cap the annual increase in assessed property valuations to a maximum of two percent, beginning with the assessments made in 2024. These changes are intended to ensure a more equitable taxation system across the state, benefiting property owners by controlling tax burdens.

Contention

While SJR503 carries potential benefits for property owners, it may also ignite debates around equity in tax contributions and the funding of public services. Critics might argue that limiting tax revenues for local governments could hinder their ability to fund essential services, such as education, infrastructure, and public safety. Additionally, there could be concerns regarding how the proposed limits would affect public financing and the overall budget for state and local services, raising questions about the long-term implications for community development and support.