South Dakota lawmakers are advancing three bills meant to keep property taxes down ahead of a crucial legislative deadline.
The Senate unanimously passed a proposal from freshman Sen. Amber Hulse, R-Hot Springs.
Hulse said the bill does this: if you owned your home prior to 2020, it would roll back the assessment to its 2020 value — before home prices rose significantly. Then, it would increase those assessments by three percent for five years for taxes payable through 2026.
For those who bought homes after, the assessment value would get set in the year the home was purchased and then increase three percent through 2026.
“And then both groups will benefit from a maximum three percent increase of that value going forward into the future. I see it as relief because in five years we’re not going to be having the same debate in the capitol," Hulse said. "People will be locked in at a value they have reliance — that they know what their property tax bill is going to be year over year.”
The Senate also advanced Gov. Larry Rhoden’s working group proposal, which limits assessment increased to three percent for five years, caps the increases on certain taxing districts to two percent and reforms who qualifies for a property tax freeze.
A House proposal reduces the allowed annual inflationary increases for taxing districts. It brings the cap from three down to 2.5 percent.
“House Bill 1235 sends a direct message to all taxing districts that are impacting our property taxes. And that message is, ‘Give me a break,'" said Rep. Greg Jamison, R-Sioux Falls, who introduced the measure
Jamison said the bill will not affect capital outlay for taxing districts. It still allows schools and counties to opt out of the cap.
All the proposals are heading to the opposite chamber for further consideration.
