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