PIERRE, S.D.(SDBA)- Left for dead after its first vote, Senate Bill 216 sprang back to life Monday, passing the South Dakota House 53-16 and giving property owners their only hope for tax relief this session.
The bill, backed by Gov. Larry Rhoden, passed with one member excused after lawmakers reconsidered their initial rejection.
The legislation returns to the Senate for consideration of House amendments.
SB 216 aims to reduce growth in property tax assessments on owner-occupied homes by capping total assessed value increases at 3 percent annually for tax years 2027 through 2031.
The legislation also limits property tax revenue increases for taxing districts to 3 percent during the same period and significantly changes the property tax assessment freeze program for elderly and disabled residents.
The property tax freeze program changes increase income thresholds from $35,000 to $55,000 for single-member households and $45,000 to $65,000 for multiple-member households.
The bill also raises the maximum home value eligible for the program from $350,000 to $500,000.
Republican Rep. Liz May from Kyle criticized the limited scope of the legislation.
Republican Rep. Greg Jamison from Sioux Falls initially opposed the measure.
However, he acknowledged that legislators made improvements through compromise.
Republican Rep. Les Heinemann from Flandreau, the bill’s sponsor, characterized the measure as a beginning step toward addressing property tax concerns–and sends a message.
The Senate must now decide whether to concur with House amendments or request a conference committee to resolve differences between the versions passed by each chamber.
Earlier in the afternoon, the House killed two other property tax reduction measures, SB 169 and SB 191.