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26.296.19 101st Legislative Session 97
2026 South Dakota Legislature
Senate Bill 97
Introduced by: Senator Deibert
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to adjust a limit on the percentage increase in revenue payable from property 1
taxes. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 10-13-35 be AMENDED: 4
10-13-35. This section does not apply to school districts. The total amount of 5
revenue payable from taxes on real property within a taxing district, excluding the levy 6
pursuant to § 10-13-36, may increase no more than the lesser of three percent or the 7
index factor, as defined in § 10-13-38, over the amount of revenue payable from taxes 8
on real property in the preceding year, excluding the amount of taxes levied pursuant to 9
§ 10-13-36. 10
After applying the index factor, a taxing district may increase the revenue payable 11
from taxes on real property above the limitations provided by this section by the 12
percentage increase of value resulting from any improvements or change in use of real 13
property, annexation, minor boundary changes, and any adjustments in taxation of 14
property separately classified and subject to statutory adjustments and reductions under 15
chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as 16
property of equal value. For taxes payable in 2027, 2028, 2029, 2030, and 2031, an 17
increase in revenue payable to a taxing district allowed under this paragraph may not 18
exceed three five percent. 19
A taxing district may increase the revenue it receives from taxes on real property 20
above the limit provided by this section for taxes levied to pay the principal, interest, and 21
redemption charges on any bonds which are subject to referendum, scheduled payment 22
increases on bonds, for a levy directed by the order of a court for the purpose of paying a 23
judgment against the taxing district, upon the termination of a tax increment financing 24
district pursuant to § 11-9-46, or upon the application of any discretionary formula to real 25
property pursuant to § 10-6-137. Any taxing district created after the effective date of 26
26.296.19 2 97
Underscores indicate new language.
Overstrikes indicate deleted language.
this section is exempt from the limitation provided by this section for a period of two years 1
immediately following its creation. 2
For purposes of this section, an increase in value resulting from an improvement 3
made to an owner -occupied single -family dwelling does not include additions to, or 4
improvements of, existing structures affixed to land that result in an increase in value of 5
forty percent or less to the owner-occupied single-family dwelling. 6
Section 2. That § 13-16-7 be AMENDED: 7
13-16-7. The school board of any school district of this state may at the board's 8
discretion authorize an annual levy of a tax not to exceed three dollars per thousand 9
dollars of taxable valuation on the taxable valuation of the district for the capital outlay 10
fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, 11
lease-purchase agreement, capital outlay certificate, or other arrangement with the Health 12
and Educational Facilities Authority. Taxes collected pursuant to the levy may be 13
irrevocably pledged by the school board to the payment of principal of and interest on 14
installment purchase contracts or capital outlay certificates entered into or issued pursuant 15
to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the 16
Health and Educational Facilities Authority and, so long as any capital outlay certificates 17
are outstanding, installment agreement payments, lease -purchase agreements, or other 18
arrangements are unpaid, the school board of any district may be compelled by mandamus 19
or other appropriate remedy to levy an annual tax sufficient to pay principal and interest 20
thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in 21
any year authorized to be levied hereby. 22
The total amount of revenue payable from the levy provided in this section may 23
not increase annually by more than the lesser of three percent or the index factor, as 24
defined in § 10-13-38, over the maximum amount of revenue that could have been 25
generated from the taxes payable in 2016. Starting with taxes payable in 2021, the total 26
amount of revenue payable from the levy provided in this section may not increase 27
annually by more than three percent over the amount of revenue that could have been 28
raised in the prior year. 29
After applying three percent, a school district may increase the revenue payable 30
from taxes on real property above the limitations provided by this section by the 31
percentage increase of value resulting from any improvements or change in use of real 32
property, annexation, minor boundary changes, and any adjustments in taxation of real 33
property separately classified and subject to statutory adjustments and reductions under 34
26.296.19 3 97
Underscores indicate new language.
Overstrikes indicate deleted language.
chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as 1
property of equal value. For taxes payable in 2027, 2028, 2029, 2030, and 2031, an 2
increase in revenue payable to a school district allowed under this paragraph may not 3
exceed three five percent. 4
A school district may increase the revenue the district receives from taxes on real 5
property above the limit provided by this section for taxes levied to pay the principal, 6
interest, and redemption charges on any bonds issued after January 1, 2009, which are 7
subject to referendum, scheduled payment increases on bonds, for a levy directed by the 8
order of a court for the purpose of paying a judgment against the school district, upon the 9
termination of a tax increment financing district pursuant to § 11-9-46, or upon the 10
application of any discretionary formula to real property pursuant to § 10-6-137. Any 11
school district created or reorganized after January 1, 2016, is exempt from the limitation 12
provided by this section for a period of two years immediately following the district's 13
creation. 14
In no year may the annual tax levy provided in this section exceed three dollars 15
per thousand dollars of taxable valuation of the school district for the current year. 16
For purposes of this section, an increase in value resulting from an improvement 17
made to an owner -occupied single -family dwelling does not include additions to, or 18
improvements of, existing structures affixed to land that result in an increase in value of 19
forty percent or less to the owner-occupied single-family dwelling. 20