The bill was put to a vote on February 8, 2022, where it received 9 yeas against 2 nays but was subsequently deferred to the 41st legislative day. This justifies that while there is some support for the bill, further discussions or amendments might still be necessary before it can be successfully passed into law.
Impact
The introduction of HB 1168 would significantly alter how property taxes are levied in South Dakota for eligible senior citizens. By exempting these homeowners from property taxes, the state aims to ease financial burdens on its aging population. This legislative change could also set a precedent for similar future proposals aimed at different demographics or income brackets. While this could lead to an increased focus on senior citizen benefits, it may also impact local government revenues that rely on property taxes for essential services.
Summary
House Bill 1168 proposes the elimination of property tax for specific senior citizens in South Dakota. To qualify for this exemption, applicants must have owned their home for at least twenty years, have a household income of no more than $60,000, and the market value of their dwelling must not exceed $500,000. The proposed measure aims to provide financial relief to long-time homeowners who are often struggling with fixed incomes in retirement. The bill outlines the necessary application process and the responsibilities of local county treasurers in assessing qualification for the exemption.
Contention
The discussions surrounding HB 1168 have highlighted various points of contention. Supporters argue that the bill is a necessary step toward supporting senior citizens, allowing them to remain in their homes without the burden of property taxes. Opponents, however, raise concerns about the potential strain on local government budgets and the fairness of tax exemptions. Critics of the bill are worried that while it benefits some seniors, it could disadvantage younger residents or families who may not have similar tax relief measures.
Provide property assessment freeze and reduction of property assessment for certain seniors, and to revise qualifications for a property tax exemption.
Transfer a property tax relief program, to change income requirements for certain property tax relief programs, and to index certain income schedules to inflation.