PIERRE — Despite heavy opposition from the Department of Revenue, school groups and business groups, a bill that would cap property taxes for homeowners squeaked by the Senate Taxation committee in a 4-3 vote Wednesday.
SB 167, sponsored by Sen. Jack Kolbeck, R-Sioux Falls, would cap tax assessments at 3% and based on when someone bought their house, the starting valuation rate would reset to the 2020 valuation. Kolbeck said in committee that the bill would provide a modicum of predictability for homeowners who are shocked that valuations continue to climb.
“It also protects and safeguards our long term South Dakotans and aging population by increasing their ability to plan and save to stay in their house,” Kolbeck said.
For homeowners who bought their house before Nov. 1, 2020, their property tax assessment would reset to the 2020 valuation if the bill were to pass. Homeowners who bought their property after Nov. 2, 2020 but before Oct. 31, 2024, the assessment rate would be based on the fair market value at time of purchase. And for homeowners who bought the property after Nov. 1, 2024, the fair market value would be applied. But for all three, the property tax assessment could not go over 3% each year.