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South DakotaSB 216100th South Dakota Legislature (2025)SenateWALLET

reduce the growth in the assessed value of owner-occupied property, limit increases in certain property tax revenues, revise provisions regarding school district excess tax levies, and revise eligibility requirements for a property tax assessment freeze.

Sponsored By: Sponsor information unavailable

Signed by Governor

Executive/Judiciary RequestHoghouse-Vehicle Bill

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Assessment freeze for qualifying longtime homeowners

The law provides an assessment freeze for qualifying owner-occupied single-family homeowners. Starting income limits are below $55,000 for one-person households and below $65,000 for larger households. Applicants generally need five years of homeownership and South Dakota residency, unless they received the freeze the previous year. They must have lived in the home at least 200 days the previous calendar year and established a base year. Surviving spouses of previously qualified people qualify when they meet the remaining requirements. The starting home-value cutoff is $500,000: homes worth that amount or more are excluded unless previously frozen for that applicant. Beginning January 1, 2026, both income limits and the home-value cutoff increase annually. Each adjustment uses the greater of the CPI-W percentage change from two years earlier or the preceding year's federal Social Security payment percentage change.

Countywide limits on home assessment growth

For taxes payable in 2027–2031, counties must limit total assessed-value growth for owner-occupied single-family homes to 3% yearly. Counties can add prior-year value from new improvements and homes newly classified in this group. They must also make adjustments required by state assessment law. This countywide cap does not limit each home's assessment increase to 3% or guarantee a lower tax bill.

Limits on local property tax growth

Covered local districts must limit yearly property-tax revenue growth to the lesser of 3% or the statutory index factor. This general limit excludes school districts and the separate levy under § 10-13-36. For taxes payable in 2027–2031, otherwise-allowed revenue growth from improvements, use changes, annexations, boundary changes, and assessment adjustments is capped at 3%. Home improvements that raise a dwelling's value by 40% or less do not count toward this added growth. Exceptions cover qualifying bond payments, court-ordered judgments, tax increment financing district endings, and a statutory discretionary formula. Newly created districts are exempt for their first two years.

Limits on school building tax growth

For taxes payable in 2027–2031, schools face a 3% cap on specified added revenue from their capital-outlay property tax. This covers growth from improvements, use changes, annexations, boundary changes, and specified assessment adjustments. Improvements raising an owner-occupied single-family home's value by 40% or less do not count toward that added growth. The annual levy remains capped at $3 per $1,000 of taxable value. Districts can pledge proceeds to capital debt and be required to collect enough to pay it within that ceiling. Exceptions to the growth cap cover qualifying bond payments, court judgments, tax increment financing district endings, and a statutory discretionary formula. Districts created or reorganized after January 1, 2016, receive a two-year exemption from the capital-outlay levy restriction.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 210 • No: 89

Senate vote • 3/11/2025

Concurred in amendments

Yes: 29 • No: 6

House vote • 3/10/2025

Do Pass Amended

Yes: 35 • No: 34

House vote • 3/10/2025

Do Pass Amended

Yes: 53 • No: 16

House vote • 3/10/2025

Reconsidered

Yes: 46 • No: 23

House vote • 3/5/2025

Do Pass

Yes: 9 • No: 4

Senate vote • 2/25/2025

Do Pass Amended

Yes: 30 • No: 5

Senate vote • 2/20/2025

Do Pass Amended

Yes: 8 • No: 1

Actions Timeline

  1. Signed by the Governor

    3/13/2025Senate

  2. Delivered to the Governor

    3/13/2025Senate

  3. Signed by the Speaker

    3/12/2025House

  4. Signed by the President

    3/12/2025Senate

  5. Senate Concurred in amendments, Passed, YEAS 29, NAYS 6

    3/11/2025Senate

  6. House of Representatives Do Pass Amended, Passed, YEAS 53, NAYS 16

    3/10/2025House

  7. House of Representatives Motion to amend, Passed

    3/10/2025House

  8. House of Representatives Reconsidered, Passed, YEAS 46, NAYS 23

    3/10/2025House

  9. Intent to reconsider

    3/10/2025House

  10. House of Representatives Do Pass Amended, Failed, YEAS 35, NAYS 34

    3/10/2025House

  11. House of Representatives Deferred to another day, Passed

    3/6/2025House

  12. House State Affairs Do Pass, Passed, YEAS 9, NAYS 4

    3/5/2025House

  13. Scheduled for hearing

    3/5/2025House

  14. First read in House and referred to House State Affairs

    2/26/2025House

  15. Senate Do Pass Amended, Passed, YEAS 30, NAYS 5

    2/25/2025Senate

  16. Senate Motion to amend, Passed

    2/25/2025Senate

  17. Senate State Affairs Do Pass Amended, Passed, YEAS 8, NAYS 1

    2/20/2025Senate

  18. Senate State Affairs Motion to amend, Passed

    2/20/2025Senate

  19. Senate State Affairs Motion to amend, Passed

    2/20/2025Senate

  20. Scheduled for hearing

    2/20/2025Senate

  21. Referred to Senate State Affairs

    2/6/2025Senate

  22. First Reading Senate

    2/5/2025Senate

Bill Text

  • Introduced

    2/5/2025

    PDF

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