SB 97

 26.296.19  101st Legislative Session  97
                                     2026 South Dakota Legislature
                                                Senate Bill 97
 Introduced by: Senator Deibert
1 An Act to adjust a limit on the percentage increase in revenue payable from property
2taxes.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
4 Section 1. That § 10-13-35 be AMENDED:
510-13-35. This section does not apply to school districts. The total amount of
6     revenue payable from taxes on real property within a taxing district, excluding the levy
7     pursuant to § 10-13-36, may increase no more than the lesser of three percent or the
8     index factor, as defined in § 10-13-38, over the amount of revenue payable from taxes
9     on real property in the preceding year, excluding the amount of taxes levied pursuant to
10     § 10-13-36.
11After applying the index factor, a taxing district may increase the revenue payable
12     from taxes on real property above the limitations provided by this section by the
13     percentage increase of value resulting from any improvements or change in use of real
14     property, annexation, minor boundary changes, and any adjustments in taxation of
15     property separately classified and subject to statutory adjustments and reductions under
16     chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as
17     property of equal value. For taxes payable in 2027, 2028, 2029, 2030, and 2031, an
18     increase in revenue payable to a taxing district allowed under this paragraph may not
19     exceed three five percent.
20A taxing district may increase the revenue it receives from taxes on real property
21     above the limit provided by this section for taxes levied to pay the principal, interest, and
22     redemption charges on any bonds which are subject to referendum, scheduled payment
23     increases on bonds, for a levy directed by the order of a court for the purpose of paying a
24     judgment against the taxing district, upon the termination of a tax increment financing
25     district pursuant to § 11-9-46, or upon the application of any discretionary formula to real
26     property pursuant to § 10-6-137. Any taxing district created after the effective date of
                                                                                Underscores indicate new language.
                                                                              Overstrikes indicate deleted language.
 26.296.19  2  97
1    this section is exempt from the limitation provided by this section for a period of two years
2    immediately following its creation.
3For purposes of this section, an increase in value resulting from an improvement
4    made to an owner-occupied single-family dwelling does not include additions to, or
5    improvements of, existing structures affixed to land that result in an increase in value of
6    forty percent or less to the owner-occupied single-family dwelling.
7 Section 2. That § 13-16-7 be AMENDED:
813-16-7. The school board of any school district of this state may at the board's
9    discretion authorize an annual levy of a tax not to exceed three dollars per thousand
10    dollars of taxable valuation on the taxable valuation of the district for the capital outlay
11    fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution,
12    lease-purchase agreement, capital outlay certificate, or other arrangement with the Health
13    and Educational Facilities Authority. Taxes collected pursuant to the levy may be
14    irrevocably pledged by the school board to the payment of principal of and interest on
15    installment purchase contracts or capital outlay certificates entered into or issued pursuant
16    to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the
17    Health and Educational Facilities Authority and, so long as any capital outlay certificates
18    are outstanding, installment agreement payments, lease-purchase agreements, or other
19    arrangements are unpaid, the school board of any district may be compelled by mandamus
20    or other appropriate remedy to levy an annual tax sufficient to pay principal and interest
21    thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in
22    any year authorized to be levied hereby.
23The total amount of revenue payable from the levy provided in this section may
24    not increase annually by more than the lesser of three percent or the index factor, as
25    defined in § 10-13-38, over the maximum amount of revenue that could have been
26    generated from the taxes payable in 2016. Starting with taxes payable in 2021, the total
27    amount of revenue payable from the levy provided in this section may not increase
28    annually by more than three percent over the amount of revenue that could have been
29    raised in the prior year.
30After applying three percent, a school district may increase the revenue payable
31    from taxes on real property above the limitations provided by this section by the
32    percentage increase of value resulting from any improvements or change in use of real
33    property, annexation, minor boundary changes, and any adjustments in taxation of real
34    property separately classified and subject to statutory adjustments and reductions under
                                                                               Underscores indicate new language.
                                                                             Overstrikes indicate deleted language.
 26.296.19  3  97
1    chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as
2    property of equal value. For taxes payable in 2027, 2028, 2029, 2030, and 2031, an
3    increase in revenue payable to a school district allowed under this paragraph may not
4    exceed three five percent.
5A school district may increase the revenue the district receives from taxes on real
6    property above the limit provided by this section for taxes levied to pay the principal,
7    interest, and redemption charges on any bonds issued after January 1, 2009, which are
8    subject to referendum, scheduled payment increases on bonds, for a levy directed by the
9    order of a court for the purpose of paying a judgment against the school district, upon the
10    termination of a tax increment financing district pursuant to § 11-9-46, or upon the
11    application of any discretionary formula to real property pursuant to § 10-6-137. Any
12    school district created or reorganized after January 1, 2016, is exempt from the limitation
13    provided by this section for a period of two years immediately following the district's
14    creation.
15In no year may the annual tax levy provided in this section exceed three dollars
16    per thousand dollars of taxable valuation of the school district for the current year.
17For purposes of this section, an increase in value resulting from an improvement
18    made to an owner-occupied single-family dwelling does not include additions to, or
19    improvements of, existing structures affixed to land that result in an increase in value of
20    forty percent or less to the owner-occupied single-family dwelling.
                                                                              Underscores indicate new language.
                                                                            Overstrikes indicate deleted language.