Senate advances two property-tax measures aimed at slowing assessment growth and providing relief

Lawmakers on the South Dakota Senate floor passed multiple measures on property taxes designed to limit sudden assessment increases and expand eligibility for relief.

Senate Bill 191, sponsored by Senator Hulse, passed by a recorded vote of 35 yeas and 0 nays. The bill reduces the growth in assessed values of owner‑occupied property by capping annual increases — sponsors described the cap as a 3% maximum annual increase for owner‑occupied assessments for a specified period — and contains provisions to treat renovations and new construction so improvements above specified thresholds are assessed separately. Supporters framed SB 191 as a targeted “rifle shot” to protect long‑time homeowners from sudden assessment jumps. The sponsor said it preserves uniform taxation across property classes and argued the measure would provide predictability to homeowners.

Senate Bill 216, the governor’s property tax relief package presented on the floor by Senator Peterson, was also approved (vote 30 yeas, 5 nays, after amendment 216C). That bill limits owner‑occupied assessment growth countywide for up to five years, adds caps on growth for taxing districts tied to actual growth, excludes modest homeowner improvements from growth calculations (improvements under 40% of assessed value), and raises limits for the assessment‑freeze program and the maximum eligible home value. The bill’s final form included a floor amendment clarifying that school districts may opt out of capital‑outlay limits, making the school and county opt‑out language consistent.

Floor debate included questions about constitutionality and tax shifts. Senator Perry asked whether a cap could run afoul of the South Dakota constitution’s uniformity clause; Senator Hulse replied that the measure taxes properties in the same property class using the same approach and therefore would be consistent with the state constitution. Senators who opposed the governor’s package raised concerns that lowering assessed values in some categories could shift the tax burden to others; sponsors acknowledged the possibility of levy adjustments but said the policy goal is to limit sudden, large increases for homeowners.

SB 191 passed unanimously in the Senate and SB 216 passed with the recorded margin shown above; both measures will move to the House, where further negotiation and fiscal reconciliation can occur.