SB 230

 26.911.12  101st Legislative Session  230
                                     2026 South Dakota Legislature
                                              Senate Bill 230
 Introduced by: Senator Deibert
1 An Act to make an exception for improvement districts from a limit on revenue
2growth for purposes of property taxation.
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, except an improvement district under
19     chapter 7-25A, allowed under this paragraph may not exceed three 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.
26.911.12  2  230
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.
                                                                              Underscores indicate new language.
                                                                            Overstrikes indicate deleted language.