Three bills aimed at reducing owner occupied property taxes are advancing in the South Dakota Capitol.
Two will get voted on in the House and Senate Thursday afternoon.
One reduces the inflationary increase percentage taxing districts can levy from three down to two point five.
The other is a bill crafted by a working group of legislators and the governor’s office. It does multiple things, including limiting assessment growth for five years at three percent. It also raises the limit on who qualifies for a property tax freeze. Some are concerned that bill will shift the property tax burden on to agriculture and commercial property.
A third bill, which will get voted on by the House on Monday, rolls assessments back to pre-pandemic levels and raises them by three percent every year going forward.
The property tax proposal is like California’s property tax law. Once a house is sold, then the assessment will rise to market rate.
Some are concerned that bill is unconstitutional, by not treating like-property equally, and would shift the tax burden onto property not receiving a reduction in value.
Many state lawmakers say their priority is to bring property tax relief. A summer study on property taxes is also expected.
