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26.976.13 101st Legislative Session 1312
2026 South Dakota Legislature
House Bill 1312
Introduced by: Representative Rice
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to limit annual valuation increases on owner -occupied single -family 1
dwellings and provide an exception for mill rate limitations on taxing 2
districts. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4
Section 1. That § 10-6-105 be AMENDED: 5
10-6-105. All real property subject to taxation shall must be listed and assessed 6
annually, but the value of such the property is to be determined according to its value on 7
the first day of November preceding the assessment , while the value of any owner -8
occupied single-family dwelling is subject to the value limitations provided in sections 2 9
and 3 of this Act. 10
Section 2. That chapter 10-6 be amended with a NEW SECTION: 11
For purposes of the annual assessment required by § 10-6-105, the assessed value 12
of an owner-occupied single-family dwelling may not increase more than the index factor, 13
as defined in § 10-13-38, beginning with the base amount as determined for assessment 14
year 2025, or any subsequent base year as provided in this section, whichever is later. 15
When a change in ownership of an owner -occupied single-family dwelling occurs, 16
the property must be reassessed at its fair market value, to determine the property's base 17
amount. When an owner -occupied single-family dwelling is sold between a willing seller 18
and a willing buyer, with no coercion or advantage taken by either party, the property's 19
base amount may not exceed the sale price of the property. 20
The limitation in the taxable value of owner-occupied single-family dwellings under 21
this section may not directly result in an increase in taxes imposed on nonagricultural 22
property or agricultural property by any taxing district. 23
For purposes of this section, "base amount" means: 24
26.976.13 2 1312
Underscores indicate new language.
Overstrikes indicate deleted language.
(1) The fair market value of any owner-occupied single-family dwelling, on November 1
1, 2020, increased by no more than the index factor, as defined in § 10-13-38, for 2
each assessment required by § 10-6-105, which was completed in 2021, 2022, 3
2023, and 2024; 4
(2) Where a change in ownership of an owner -occupied single -family dwelling has 5
occurred between November 2, 2020, and October 31, 2025, inclusive, the fair 6
market value of the property on the date of transfer or purchase, increased by no 7
more than the index factor, as defined in § 10-13-38, for each assessment required 8
by § 10-6-105, which was completed after the transfer or purchase in any year 9
between 2021 and 2024, inclusive; or 10
(3) Where a change in ownership of an owner -occupied single-family dwelling occurs 11
on November 1, 2025, or later, the fair market value of the property. 12
Section 3. That a NEW SECTION be added to chapter 10-6: 13
The base amount of any owner -occupied single -family dwelling may be further 14
increased above the limitations provided by section 2 of this Act, if there is a change in 15
the use or classification of the property, or to account for any addition to, or expansion 16
of, the property. 17
An addition to, or expansion of, the property may only result in an increase in the 18
assessed value above the limitations provided by section 2 of this Act by the difference in 19
assessed value between the real property with the addition or expansion and the real 20
property as if no addition or expansion was made. 21
For purposes of this section, the increase in taxable value from improvements to 22
an owner-occupied single-family dwelling does not include additions to, or improvements 23
of, existing structures affixed to the land if the improvements result in an increased 24
assessed value of forty percent or less of the current assessed value. 25
Section 4. That a NEW SECTION be added to chapter 10-12: 26
Notwithstanding any other provision of law, i f the limitation provided by § 10-13-27
35 constitutes a mill rate for a taxing district greater than a mill rate limitation provided 28
by law for the district, the district may impose a tax levy resulting in a mill rate greater 29
than the limits set forth in law, to the extent that the revenue payable from real property 30
taxation in the district does not exceed the amount of revenue payable from real property 31
taxation in the 2025 tax year, increased annually by: 32
(1) The index factor, as defined in § 10-13-38; and 33
26.976.13 3 1312
Underscores indicate new language.
Overstrikes indicate deleted language.
(2) The percentage of growth in value resulting from: 1
(a) Improvements or changes in use of the real property within the district; 2
(b) Annexation or minor boundary changes of the district; and 3
(c) Adjustment in taxation or classification of property within the district. 4