Taxation

SB 228 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which are areas where property tax growth funds redevelopment projects. It updates the requirement that at least 50% of a district's area must be blighted or serve economic development goals (replacing a confusing "25 fifty percent" phrasing), and adds new consent rules: counties need municipal approval to create TIF districts within cities, and municipalities need county approval for districts within counties. These changes directly affect local governments (counties and municipalities) seeking to establish TIF districts for redevelopment. The bill focuses on clarifying eligibility criteria and intergovernmental coordination, not on funding amounts or project specifics.

HB 1253 adjusts how property taxes are calculated for owner-occupied single-family homes and nonagricultural land by using a special averaging method. It requires county assessors to set each property's taxable value based on the "Olympic average" (removing the highest and lowest values) of its fair market value over the past eight years, or since a recent change in use or addition. This aims to stabilize tax bills by smoothing out annual value fluctuations. The bill specifically prevents this adjustment from increasing taxes on agricultural properties. It directly affects homeowners and nonagricultural property owners in South Dakota.

SB 21 adjusts South Dakota's retail sales tax refund program for low-income residents. It sets specific income thresholds ($17,215 for single-person households, $23,265 for larger households) and calculates refunds as $258 for eligible singles under the limit, up to $581 for larger households. The bill ensures these refunds remain available even if a recipient also receives property tax relief under separate programs. It directly affects elderly residents and people with disabilities who meet the income criteria under existing state law.

SB 125 creates a state fund to provide property tax rebates for owner-occupied single-family homes in South Dakota. The Department of Revenue will calculate annual rebates using a formula: multiplying $2 by the number of eligible homeowners, subtracting that from the fund's total, and dividing by the number of homeowners. Rebates are capped at either this calculated amount or the portion of property taxes exceeding $250 per home. The fund cannot be diverted to the general state budget, and any unused funds must stay in the fund or cover administrative costs. This directly affects homeowners who live in single-family residences and pay property taxes.

SB 208 requires South Dakota courts to automatically award attorney fees and costs to property owners or taxpayers who win appeals against property tax assessments. Currently, courts could choose whether to award these fees to winning appellants, but this bill makes it mandatory when owners prevail. The law applies to both circuit court and Supreme Court cases involving property tax disputes. It directly affects property owners challenging their tax assessments in court by ensuring they receive reimbursement for legal costs if they win. The key change shifts the rule from discretionary ("may award") to mandatory ("must award") for prevailing parties.