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Senate advances property-tax measures aimed at capping owner-occupied valuation growth and offering freezes
Summary
Lawmakers passed a pair of property-tax measures addressing rapid valuation increases: SB 191 (3% annual cap for owner-occupied assessments) passed 35–0; SB 216 (governor’s package limiting owner-occupied growth and expanding freezes) passed 30–5. Both measures target assessment growth and eligibility for relief.
The South Dakota Senate approved several related property-tax measures intended to limit rapid increases in owner-occupied property assessments and expand relief options.
Senate Bill 191, sponsored by Senator Hulse, would limit annual assessed-value growth for owner-occupied property to 3% and apply related rules to create predictability for homeowners; the Senate passed SB 191 unanimously, 35–0. "This bill isn't complicated. It's common sense and it's what our constituents are begging for," Hulse said on the floor, urging senators to provide lasting relief.
Senate Bill 216, the governor's property-tax relief proposal (sponsored in debate by Senator Peterson), also passed the Senate after the adoption of amendment 216C, which clarified school capital-outlay opt-outs and aligned county/school opt-out consistency. SB 216 limits owner-occupied assessed-value growth countywide to 3% for five years, excludes certain improvements under 40% from growth calculations, and increases assessment-freeze eligibility and caps (for example, raising maximum eligible freeze amounts and up to $500,000 home-value eligibility in the sponsor's presentation). The Senate vote on SB 216 was 30 yeas and 5 nays.
Supporters said the measures are targeted responses to rapid assessment-driven tax increases homeowners have reported in recent years and are intended to provide both short-term relief and longer-term reform. "If we don't get some real property tax relief for our citizens, I will help lead the charge to get something on the ballot to provide our citizens with some real relief," Senator Howard said in support of the measures.
Opponents raised questions about potential tax shifts and constitutional uniformity obligations; sponsors said assessments and levy-setting remain the mechanism for revenue collection and that any shift would be managed by levies. Senator Reid asked whether these changes would shift tax burdens between property classes; sponsors acknowledged levies could adjust but defended that assessments and caps are structured to remain within constitutional bounds.
Both bills will proceed to the House for further consideration; sponsors urged prompt action to avoid further tax-year shocks to homeowners.
