South Dakota 2024 Regular Session

South Dakota House Bill HB1181

Introduced
1/25/24  
Refer
1/25/24  

Caption

Increase the number of years the discretionary formula may be applied to a structure, and to allow for the individual application of the discretionary formula for a structure.

Impact

One of the primary impacts of HB 1181 is the extended period during which new structures can benefit from a tax reduction based on this discretionary formula. This can enhance the financial attractiveness of property development in blighted areas and urban renewal zones, potentially leading to increased investment and revitalization in communities. Furthermore, counties and municipalities will have more flexibility in how they assess properties, fostering local economic development and encouraging new construction projects.

Summary

House Bill 1181 aims to modify the existing property tax assessment process in South Dakota by increasing the number of years the discretionary formula can be applied to structures from five to ten years. The bill allows county commissioners to implement a discretionary formula that can vary based on the type of structure and its location, particularly focusing on new industrial, commercial, or agricultural properties over certain value thresholds. This change seeks to incentivize the construction and renovation of properties in specified areas, especially those defined as blighted or abandoned.

Contention

While the bill is positioned to encourage growth and development, there are concerns regarding its implications for local governance and revenue. Some critics argue that allowing discretionary tax formulas could lead to unequal treatment of property owners and skew assessments in favor of particular developments. Furthermore, the broad discretion granted to county commissioners might provoke disputes over what qualifies for tax reductions, particularly in areas facing different levels of economic distress.

Final_notes

In conclusion, HB 1181 represents an effort to streamline property taxation in South Dakota while promoting development in strategic areas. However, its passage may invoke debates around equity, fairness, and the balance of local control in tax matters as the effects of such changes could unfold in varied and potentially controversial ways.

Companion Bills

No companion bills found.

Previously Filed As

SD HF1076

Pharmacy benefit managers and health carriers required to include lower-cost drugs in their formularies, and formulary structure and formulary tiering for each health plan required to give preference to the drug with the lowest out-of-pocket cost to the patient.

SD HF1076

Status in the House - 94th Legislature (2025 - 2026)

SD SB1081

Optometry; dissolves TPA-Formulary and TPA-Formulary Committee.

SD AB2000

Drug formularies.

SD HB1898

Optometry; TPA-Formulary; TPA-Formulary Committee; dissolution.

SD HB6580

VA National Formulary Act of 2025

SD HB5025

Allowing the burning of obsolete farm structures.

SD HB2955

gasoline formulations; air quality

SD HB1647

relative to the taxation of farm and farm structures.

SD LD1128

An Act to Modernize the Formulary for Naturopathic Doctors

Similar Bills

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NJ S1401

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NJ A1058

Requires DCA to review and amend State Uniform Construction Code concerning parking structures to address increased weight of electric vehicles.

TX SB47

Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty, a natural disaster, or wind or water damage as a new improvement for ad valorem tax purposes.

CA AB1455

State Board of Forestry and Fire Protection: defensible space requirements: ember-resistant zones: emergency regulations: California Environmental Quality Act.

ND HB1500

Nonconforming structures in counties, cities, and townships.

ND HB1500

AN ACT to create and enact sections 11-33-17.1, 40-47-05.1, and 58-03-14.1 of the North Dakota Century Code, relating to nonconforming structures in counties, cities, and townships.