South Dakota House Bill HB1040

South Dakota 2024 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

If enacted, HB1040 would significantly alter the landscape of property taxation for owner-occupied single-family homes in South Dakota. By capping the annual valuation increases, the bill seeks to ensure that homeowners are not subjected to sudden or excessive property tax hikes, fostering a more affordable housing market. This could have particularly positive implications for families and individuals on fixed incomes, who may struggle with rising costs in other areas. However, it may also have implications for local government revenue and its ability to fund essential services, depending on how property valuations relate to overall revenue generation.

Summary

House Bill 1040 aims to limit annual valuation increases on owner-occupied single-family dwellings in South Dakota. The bill introduces legislation that restricts the increase of property assessment values to a maximum of three percent per year, with stipulations on how the 'base amount' for valuation is established. This base amount is defined as the fair market value of the dwelling as of November 1, 2020, and applies to subsequent years unless a change in ownership occurs, in which case the property would be reassessed to reflect its sale price but also remains bound by the three percent annual increase limit. The goal of this legislation is to provide stability and predictability for homeowners concerning their property taxes.

Contention

Notable points of contention regarding HB1040 may arise from the balance between protecting homeowners and ensuring adequate funding for local government services. Critics may argue that such limits on property valuation could lead to decreased revenue for municipalities and hinder their ability to provide necessary public services. Proponents, on the other hand, assert that the legislation will provide much-needed relief for homeowners facing the rising costs associated with property taxes, thereby promoting long-term housing affordability. The fiscal implications of limiting property assessments are likely to be a key point of debate among legislators and community stakeholders.