PIERRE, S.D.(Press Release) –On Tuesday, Governor Larry Rhoden’s bill to address the rising burden of property taxes on South Dakota homeowners, SB 216, will take effect.

“SB 216 is a big win for South Dakota homeowners. It is impactful and workable, and it will certainly slow down any future tax increases,” said Governor Larry Rhoden. “I am grateful for the legislators who worked with me and engaged in meaningful discussions along the way. Everyone pulled their weight in order to get this important bill passed.”

SB 216 addresses the property tax burden on homeowners in the following ways:

• Limits the increase in owner-occupied assessments to 3% countywide for the next 5 tax years;
• Sets a 3% cap on the amount taxing districts and school capital outlay budgets can increase as a result of new construction – local government budgets don’t need to grow just because a homeowner makes a small improvement to their property; and
• Increases the maximum income limits for the assessment freeze program to $55,000 for single member homes and $65,000 for multi-member homes – the bill also increases the maximum eligible home value to $500,000.

Governor Rhoden signed SB 216 at a signing ceremony in the Capitol Rotunda. You can find a photo of the signing here.

Governor Rhoden also recently announced his Homeowner Tax Relief Proposal, which would further reduce the burden of property taxes.

“SB 216 was an important step forward, but we are not done bringing property tax relief to South Dakotans,” continued Governor Larry Rhoden. “The best way to do that is through my proposal, which would give counties the option to cut property taxes and replace the revenue with a county-option sales tax. This proposal would allow out-of-state residents to pick up some of the tab, and I am confident that it will provide a meaningful property tax cut.”

You can find additional information about the Governor’s Homeowner Property Tax Proposal here.