PIERRE, S.D. — South Dakotans who have been a property owner and a resident of the state for at least 30 years would be eligible for property tax relief under a bill proposed by state Rep. Taffy Howard, R-Rapid City.
House Bill 1253 would entitle long-term residents and property owners to a property tax assessment freeze if they own a single-family dwelling.
The bill was assigned to the House Taxation Committee on Monday, Feb. 10.
State law currently allows property tax assessment freezes on single-family households if the following conditions are met:
The owner has a household income of less than $20,000 if the household is a single-member home or $25,000 if there are multiple members in the household.
The property owner has been a resident of South Dakota for at least one year and has resided in their home for at least 200 days of the previous year.
The bill would add property owners and residents of over 30 years to the list. The county treasurer decides if a property tax assessment freeze application meets all the necessary requirements.
The state budget is not funded by property taxes, but counties, municipalities and other local governments rely heavily on property tax revenue.
In 2019, South Dakota’s effective property tax rate was 1.21 percent, the median home value was $167,600 and the median household income was $56,521, according to data sourced from the Tax Foundation.
Another bill that leans favorably toward established citizens in the state would prohibit nonresident aliens, foreign businesses or foreign governments, agents or trustees from purchasing or otherwise acquiring agricultural land in South Dakota.
Senate Bill 163 was introduced by Sen. Jordan Youngberg, R-Chester. The bill would allow foreign governments and businesses or nonresident aliens who lawfully own over 327 acres of ag land as of July 1 may continue to own or hold the land but would be unable to acquire additional land in the state after that date, according to the bill.
The bill will be debated in the House Agriculture and Natural Resources Committee within the next few weeks.