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SD HB1312
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Kathy Rice
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AI Summary
- Caps annual assessed value increases on owner-occupied single-family dwellings to no more than the index factor (as defined in § 10-13-38), using assessment year 2025 as the base year
- Requires reassessment at fair market value upon a change in ownership, with the base amount capped at the sale price for arm's-length transactions between willing buyers and sellers
- Establishes retroactive base amount calculations tied to November 1, 2020 fair market values, adjusted by the index factor for assessments completed in 2021–2024, with separate rules for properties that changed ownership between November 2, 2020 and October 31, 2025
- Allows the base amount to increase beyond the cap for changes in use or classification, or for physical additions/expansions, but excludes improvements to existing structures that increase assessed value by 40% or less
- Permits taxing districts to exceed statutory mill rate limits if the valuation cap under § 10-13-35 would otherwise push their mill rate above legal limits, provided total real property tax revenue does not exceed 2025 levels increased annually by the index factor and growth from new improvements, annexations, or classification changes
Legislative Description
Limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.
Property Tax
Last Action
Taxation Deferred to the 41st legislative day, Passed, YEAS 9, NAYS 3.
2/17/2026
Committee Referrals
Taxation2/5/2026
Full Bill Text
No bill text available