Limit the annual increase in assessed value of each owner-occupied single-family dwelling.
Summary
House Bill 1307 would cap the annual increase in the assessed value of property classified as an owner-occupied single-family dwelling. For taxes payable in 2027 through 2031, the total assessed value in a county for this class of property could not rise by more than 3 percent over the prior year, except for additional value attributable to new improvements or property newly reclassified into the owner-occupied classification. The bill also preserves the requirement that counties make any adjustments required under existing law governing assessment changes.
The measure is aimed at limiting growth in property tax assessments for primary residences, which could help moderate tax increases for homeowners in the owner-occupied single-family dwelling class. It would amend South Dakota Codified Law § 10-6-158 and take effect July 1, 2027, thereby changing how county assessors calculate the aggregate assessed value for this property category over a five-year period.
Impact
HB1307 would amend South Dakota’s property tax assessment law by placing a statutory cap on year-over-year increases in the assessed value of owner-occupied single-family dwellings at the county level. Counties would still be allowed to add value from new improvements and newly classified properties, and they would remain subject to existing adjustment requirements under § 10-6-121. The bill would affect county assessors, local taxing authorities, and homeowners in the owner-occupied single-family dwelling classification by limiting the pace at which assessed values can rise for tax purposes.
Sentiment
The available voting history suggests the bill was not advanced at the committee stage, as it was tabled on a 12-0 vote. With no committee transcript provided, there is no recorded debate to indicate support or opposition arguments in detail. The unanimous vote to table suggests either procedural hesitation, a desire for further review, or lack of readiness to move the measure forward at that time.
Contention
The main policy issue is whether a statutory cap on assessed-value growth for owner-occupied homes is an appropriate way to provide property tax relief without unduly constraining local revenue growth. Supporters would likely view the bill as protecting homeowners from sharp assessment increases, while opponents may worry it could reduce flexibility for counties and local governments or create inequities between property classes. Because the bill applies only to owner-occupied single-family dwellings and excludes value from new improvements and reclassifications, questions may also arise about fairness, administrative complexity, and the effect on local tax bases.