PIERRE, S.D. (SDBA) — One of the downsides of out-of-state residents moving to South Dakota with fat wallets from selling their homes and buying another house in the state well above market value is hurting long-time homeowners.

That is the contention of supporters of SJR505.

However, Wednesday, the Senate Taxation Committee killed the ballot measure that would have rolled property assessments for all classes of property back to 2020 values. It would also have limited property tax increases to 1% per year. People who buy property would then pay the higher assessed value.

Resolution sponsor, Republican Sen. Frye-Mueller from Rapid City.

Opponents from the Department of Revenue, the South Dakota Retailers Association, and the South Dakota Chamber of Commerce and Industry argued that if passed, the constitutional amendment would put a huge, unfillable financial hole in local governments’ budgets.

Opponent Wendy Semmler from the Department of Revenue.

The vote was 6 to 0 to send the resolution to the 41st day, thus killing it.