| 1 | 1 | | 25.845.18 100th Legislative Session 207 |
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| 4 | 4 | | 2025 South Dakota Legislature |
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| 5 | 5 | | Senate Bill 207 |
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| 12 | 12 | | Introduced by: Senator Peterson (Sue) |
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| 14 | 14 | | Underscores indicate new language. |
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| 15 | 15 | | Overstrikes indicate deleted language. |
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| 16 | 16 | | An Act to freeze property tax revenues and assessments for two years. 1 |
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| 17 | 17 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 |
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| 18 | 18 | | Section 1. That § 10-13-35 be AMENDED: 3 |
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| 19 | 19 | | 10-13-35. This section does not apply to school districts. For taxes payable in 4 |
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| 20 | 20 | | 1997, and each year thereafter, the The total amount of revenue payable from taxes on 5 |
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| 21 | 21 | | real property within a taxing district, excluding the levy pursuant to § 10-13-36, may not 6 |
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| 22 | 22 | | increase no more than the lesser of three percent or the index factor, as defined in § 10-7 |
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| 23 | 23 | | 13-38,: 8 |
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| 24 | 24 | | (1) For taxes payable in 2026 and 2027, over the amount of revenue payable from 9 |
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| 25 | 25 | | taxes on real property in the preceding year, excluding the amount of taxes levied 10 |
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| 26 | 26 | | pursuant to § 10-13-36; or 11 |
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| 27 | 27 | | (2) For taxes payable in 2028 and each year thereafter, more than the lesser of three 12 |
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| 28 | 28 | | percent or the index factor, as defined in § 10-13-38, over the amount of revenue 13 |
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| 29 | 29 | | payable from taxes on real property in the preceding year, excluding the amount 14 |
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| 30 | 30 | | of taxes levied pursuant to § 10-13-36. 15 |
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| 31 | 31 | | After applying the index factor, a A taxing district may increase the revenue 16 |
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| 32 | 32 | | payable from taxes on real property above the limitations provided by this section 17 |
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| 33 | 33 | | subdivisions (1) and (2) by the percentage increase of value resulting from any 18 |
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| 34 | 34 | | improvements or change in use of real property, annexation, minor boundary changes, 19 |
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| 35 | 35 | | and any adjustments in taxation of property separately classified and subject to statutory 20 |
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| 36 | 36 | | adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-21 |
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| 37 | 37 | | 6-113, only if assessed the same as property of equal value. 22 |
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| 38 | 38 | | A taxing district may increase the revenue it receives from taxes on real property 23 |
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| 39 | 39 | | above the limit provided by this section for taxes levied to pay the principal, interest, and 24 |
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| 40 | 40 | | redemption charges on any bonds issued after January 1, 1997, which are subject to 25 |
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| 41 | 41 | | referendum, scheduled payment increases on bonds and for a levy directed by the order 26 25.845.18 2 207 |
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| 42 | 42 | | Underscores indicate new language. |
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| 43 | 43 | | Overstrikes indicate deleted language. |
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| 44 | 44 | | of a court for the purpose of paying a judgment against such taxing district.Any taxing 1 |
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| 45 | 45 | | district created after the effective date of this section is exempt from the limitation 2 |
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| 46 | 46 | | provided by this section for a period of two years immediately following its creation. 3 |
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| 47 | 47 | | Section 2. That § 10-13-35.3 be AMENDED: 4 |
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| 48 | 48 | | 10-13-35.3. Any county or municipality may decrease the total amount of revenue 5 |
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| 49 | 49 | | payable from taxes on real property below the maximum limit allowed by § 10-13-35 in 6 |
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| 50 | 50 | | any year. The decrease may not affect the amount of revenue payable that may be raised 7 |
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| 51 | 51 | | in accordance with §§ § 10-13-35.4 and 10-13-35.5. 8 |
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| 52 | 52 | | Section 3. That § 13-16-7 be AMENDED: 9 |
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| 53 | 53 | | 13-16-7. The school board of any school district of this state may at the board's 10 |
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| 54 | 54 | | discretion authorize an annual levy of a tax not to exceed three dollars per thousand 11 |
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| 55 | 55 | | dollars of taxable valuation on the taxable valuation of the district for the capital outlay 12 |
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| 56 | 56 | | fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, 13 |
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| 57 | 57 | | lease-purchase agreement, capital outlay certificate, or other arrangement with the Health 14 |
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| 58 | 58 | | and Educational Facilities Authority. Taxes collected pursuant to the levy may be 15 |
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| 59 | 59 | | irrevocably pledged by the school board to the payment of principal of and interest on 16 |
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| 60 | 60 | | installment purchase contracts or capital outlay certificates entered into or issued pursuant 17 |
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| 61 | 61 | | to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the 18 |
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| 62 | 62 | | Health and Educational Facilities Authority and, so long as any capital outlay certificates 19 |
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| 63 | 63 | | are outstanding, or any installment agreement payments, lease-purchase agreements, or 20 |
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| 64 | 64 | | other arrangements are unpaid, the school board of any district may be compelled by 21 |
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| 65 | 65 | | mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal 22 |
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| 66 | 66 | | and interest thereon, but not to exceed the three dollars per thousand dollars of taxable 23 |
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| 67 | 67 | | valuation in any year authorized to be levied hereby. 24 |
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| 68 | 68 | | The total amount of revenue payable from the levy provided in this section may 25 |
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| 69 | 69 | | notincrease annually by more than the lesser ofthree percent or the index factor, as 26 |
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| 70 | 70 | | defined in § 10-13-38, over the maximum amount of revenue that could have been 27 |
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| 71 | 71 | | generated from the taxes payable in 2016. Starting with taxes payable in 2021, the The 28 |
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| 72 | 72 | | total amount of revenue payable from the levy provided in this section may not increase 29 |
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| 73 | 73 | | annually by more than three percent: 30 |
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| 74 | 74 | | (1) For taxes payable in 2026 and 2027, over the amount of revenue that could have 31 |
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| 75 | 75 | | been was raised in the prior year; or 32 25.845.18 3 207 |
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| 76 | 76 | | Underscores indicate new language. |
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| 77 | 77 | | Overstrikes indicate deleted language. |
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| 78 | 78 | | (2) For taxes payable in 2028 and each year thereafter, by more than three percent 1 |
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| 79 | 79 | | over the amount of revenue that was raised in the prior year. 2 |
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| 80 | 80 | | After applying three percent, a A school district may increase the revenue payable 3 |
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| 81 | 81 | | from taxes on real property above the limitations provided by this section subdivisions (1) 4 |
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| 82 | 82 | | or (2) by the percentage increase of value resulting from any improvements or change in 5 |
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| 83 | 83 | | use of real property, annexation, minor boundary changes, and any adjustments in 6 |
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| 84 | 84 | | taxation of real property separately classified and subject to statutory adjustments and 7 |
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| 85 | 85 | | reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if 8 |
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| 86 | 86 | | assessed the same as property of equal value.A school district may increase the revenue 9 |
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| 87 | 87 | | the district receives from taxes on real property above the limit provided by this section 10 |
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| 88 | 88 | | for taxes levied to pay the principal, interest, and redemption charges on any bonds issued 11 |
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| 89 | 89 | | after January 1, 2009, which are subject to referendum, scheduled payment increases on 12 |
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| 90 | 90 | | bonds and for a levy directed by the order of a court for the purpose of paying a judgment 13 |
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| 91 | 91 | | against the school district. Any school district created or reorganized after January 1, 14 |
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| 92 | 92 | | 2016, is exempt from the limitation provided by this section for a period of two years 15 |
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| 93 | 93 | | immediately following the district's creation. 16 |
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| 94 | 94 | | In no year may the annual tax levy provided in this section exceed three dollars 17 |
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| 95 | 95 | | per thousand dollars of taxable valuation of the school district for the current year. 18 |
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| 96 | 96 | | Section 4. That § 10-13-35.5 be REPEALED. 19 |
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| 97 | 97 | | The county or municipality may increase the total amount of revenue payable from 20 |
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| 98 | 98 | | taxes on real property in any year up to the maximum amount calculated in accordance 21 |
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| 99 | 99 | | with § 10-13-35.4 utilizing any unused index factor from the prior three years. However, 22 |
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| 100 | 100 | | such an amount may not exceed the prior three year index factor total or ten percent, 23 |
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| 101 | 101 | | whichever is less. 24 |
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| 102 | 102 | | Section 5. For purposes of the annual assessment required by § 10-6-105, the assessed 25 |
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| 103 | 103 | | value of real property for taxes payable in 2026 and 2027 may not increase over the assessed 26 |
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| 104 | 104 | | value of the property for taxes payable in 2025, unless there has been a change in the use or 27 |
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| 105 | 105 | | classification of the property, or to account for an addition or expansion of the property. 28 |
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