PIERRE, S.D. (SDBA) — The South Dakota Senate Taxation Committee voted 6-0 today (Friday) to advance legislation capping three percent annual property tax assessment increases.
Senate Bill 191, introduced by Sen. Amber Hulse, R-Hot Springs, would limit assessment increases on owner-occupied single-family dwellings, running parallel to property tax relief measures proposed by the Rhoden Administration.
“No one could have expected COVID-19 to happen, and no one could have foreseen the real estate market to change like it did,” Hulse said. “Before the real estate market changed forever in South Dakota before 2020, for most folks, their property tax bills went up in small incremental amounts.”
Rep. Jack Kolbeck, R-Sioux Falls, a bill supporter, talked about his situation.
“My taxes went from $2,700 to $5,400 since that time,” Kolbeck said. “If I was just on Social Security or had some small investments, I would not be able to afford to live in that house today.”
The South Dakota Farm Bureau opposed the measure, with Sen. Julie Grove, R-Lower Brule, expressing worries about rural impacts.
“My concern is that the point was made that the people don’t have a lobbyist,” Grove said. “In my area, it’s all ag. If you’re shifting it all towards that, then that would mean that I would have to advocate for them.”
David Barker, Ph.D., an economist from the University of Chicago, testified in favor of the measure.
“California has plenty of problems, but one good thing is that back in 1978, they passed a bill similar to this that prevents property taxes from increasing before a property is sold,” Barker said.
“This bill is not in competition with the governor’s proposal,” Hulse noted. “I really hope his bill passes. I truly do.”
Several West River homeowners testified for the bill, expressing dismay at their increasing property taxes.
The bill moves to the Senate floor Monday, where lawmakers will consider an amendment addressing concerns about agricultural tax shifts.
