HB 1312

 26.976.13  101st Legislative Session  1312
                                      2026 South Dakota Legislature
                                              House Bill 1312
 Introduced by: Representative Rice
1 An Act to limit annual valuation increases on owner-occupied single-family
2dwellings and provide an exception for mill rate limitations on taxing
3districts.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
5 Section 1. That § 10-6-105 be AMENDED:
610-6-105. All real property subject to taxation shall must be listed and assessed
7     annually, but the value of such the property is to be determined according to its value on
8     the first day of November preceding the assessment, while the value of any owner-
9     occupied single-family dwelling is subject to the value limitations provided in sections 2
10     and 3 of this Act.
11 Section 2. That chapter 10-6 be amended with a NEW SECTION:
12For purposes of the annual assessment required by § 10-6-105, the assessed value
13     of an owner-occupied single-family dwelling may not increase more than the index factor,
14     as defined in § 10-13-38, beginning with the base amount as determined for assessment
15     year 2025, or any subsequent base year as provided in this section, whichever is later.
16When a change in ownership of an owner-occupied single-family dwelling occurs,
17     the property must be reassessed at its fair market value, to determine the property's base
18     amount. When an owner-occupied single-family dwelling is sold between a willing seller
19     and a willing buyer, with no coercion or advantage taken by either party, the property's
20     base amount may not exceed the sale price of the property.
21The limitation in the taxable value of owner-occupied single-family dwellings under
22     this section may not directly result in an increase in taxes imposed on nonagricultural
23     property or agricultural property by any taxing district.
24For purposes of this section, "base amount" means:
                                                                              Underscores indicate new language.
                                                                            Overstrikes indicate deleted language.
 26.976.13  2  1312
1    (1)      The fair market value of any owner-occupied single-family dwelling, on November
21, 2020, increased by no more than the index factor, as defined in § 10-13-38, for
3each assessment required by § 10-6-105, which was completed in 2021, 2022,
42023, and 2024;
5    (2)      Where a change in ownership of an owner-occupied single-family dwelling has
6occurred between November 2, 2020, and October 31, 2025, inclusive, the fair
7market value of the property on the date of transfer or purchase, increased by no
8more than the index factor, as defined in § 10-13-38, for each assessment required
9by § 10-6-105, which was completed after the transfer or purchase in any year
10between 2021 and 2024, inclusive; or
11    (3)      Where a change in ownership of an owner-occupied single-family dwelling occurs
12on November 1, 2025, or later, the fair market value of the property.
13 Section 3. That a NEW SECTION be added to chapter 10-6:
14The base amount of any owner-occupied single-family dwelling may be further
15    increased above the limitations provided by section 2 of this Act, if there is a change in
16    the use or classification of the property, or to account for any addition to, or expansion
17    of, the property.
18An addition to, or expansion of, the property may only result in an increase in the
19    assessed value above the limitations provided by section 2 of this Act by the difference in
20    assessed value between the real property with the addition or expansion and the real
21    property as if no addition or expansion was made.
22For purposes of this section, the increase in taxable value from improvements to
23    an owner-occupied single-family dwelling does not include additions to, or improvements
24    of, existing structures affixed to the land if the improvements result in an increased
25    assessed value of forty percent or less of the current assessed value.
26 Section 4. That a NEW SECTION be added to chapter 10-12:
27Notwithstanding any other provision of law, if the limitation provided by § 10-13-
28    35 constitutes a mill rate for a taxing district greater than a mill rate limitation provided
29    by law for the district, the district may impose a tax levy resulting in a mill rate greater
30    than the limits set forth in law, to the extent that the revenue payable from real property
31    taxation in the district does not exceed the amount of revenue payable from real property
32    taxation in the 2025 tax year, increased annually by:
33    (1)      The index factor, as defined in § 10-13-38; and
                                                                               Underscores indicate new language.
                                                                             Overstrikes indicate deleted language.
26.976.13  3  1312
1    (2)      The percentage of growth in value resulting from:
2(a)    Improvements or changes in use of the real property within the district;
3(b)    Annexation or minor boundary changes of the district; and
4(c)    Adjustment in taxation or classification of property within the district.
                                                                               Underscores indicate new language.
                                                                             Overstrikes indicate deleted language.