HB 1253 — adjust the assessment methodology for owner-occupied single-family dwellings and nonagricultural property.

26.428.3926.428.40 101st Legislative Session 1253 South Dakota Legislature House Bill 1253 HOUSESENATE TAXATION ENGROSSED IntroducedThis by:bill has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor.

RepresentativeIntroduced Odenbachby: An Act to adjust the assessment methodology for owner-occupied single-family dwellings and nonagricultural property by considering previous years' assessed values.

BRepresentative EOdenbach ITAn ENACTEDAct BYto THEadjust LEGISLATUREthe OFassessment THEmethodology Sfor TATEowner-occupied OFsingle-family SOUTHdwellings Dand AKOTAnonagricultural :property.

B E IT ENACTED BY THE L EGISLATURE OF THE STATE OF SOUTH D AKOTA :

(1) "Assessment sampleyear," period," the mostyear recentin eightwhich assessmentreal years,property includingis assessed, which immediately precedes the currentyear assessmentin year;which property taxes are due and payable;

(4) "Olympic"Prior average",assessment theyear," arithmetic average of a set of values after removing the singleassessment highestyear andimmediately singlepreceding lowest values from the setcurrent andassessment averagingyear; the remaining values;

and (3)(5) "Tract," "lot," "piece," or "parcel," any contiguous quantity of land that is possessed by, owned by, or recorded in the name of the same person.

That § 10-6-119 be AMENDED:

10-6-119.

The director shall individually assess each tract of real property at its fair market value, subject to the limitations provided in section 3 of this Act.

In determining the fair market value of property, the director may not adopt a lower or different standard of value because it is to serve as a basis of taxation.

The director may not adopt as a criterion of value the price for which a tract of real property would sell at a forced sale, or in the aggregate with all other tracts of real property in the county.

The director shall determine the fair market value by appropriate consideration of the cost approach, the market approach, and the income approach to appraisal.

The director shall consider and document all elements of such approaches that are applicable prior to a determination of fair market value.

Overstrikes indicate deleted language.

26.428.40 2 1253 Section 3.

AfterExcept annuallyas determiningotherwise theprovided fairin marketsections value4 to 6, inclusive, of allthis propertyAct, pursuantfor tothe §2027 10-assessment 6-105,year and each assessment year thereafter, the director shall adjust the assessed value of each property classified as an owner-occupied single-family dwelling andor nonagricultural propertyproperty, pursuant to equal§ the10-6-110, intertemporalto averageequal value of the property.lesser of:

For(1) purposesThe of this section, if during the assessment sample period the property had no change in its use or classification, or no addition, "intertemporal average value" means the olympic average of the fair market value of the property, as determined pursuant to § 10-6-105,10-6-119; during the assessment sample period.

or (2) The assessed value of the property in the prior assessment year, increased by five percent.

Section 4.

That a NEW SECTION be added to chapter 10-6:

Notwithstanding section 3 of this Act, every fifth assessment year, the director shall assess each owner-occupied single-family dwelling and nonagricultural property, classified pursuant to § 10-6-110, at the property's fair market value determined pursuant to § 10-6-119.

Section 5.

That a NEW SECTION be added to chapter 10-6:

The provisions of section 3 of this Act do not apply to assessed value derived solely from the new construction of, reconstruction of, improvements to, or additions to, real property for the first assessment since the new construction, reconstruction, improvement, or addition was made.

Section 6.

That a NEW SECTION be added to chapter 10-6:

The provisions of section 3 of this Act do not apply to property assessed under chapters 10-28 to 10-38, inclusive.

Section 7.

That § 10-6-124 be AMENDED:

10-6-124.

The secretary of revenue the department may promulgate rules pursuant to chapter 1-26 concerning the:

(1) Collection and tabulation of information required to determine median appraisal or sales assessment ratio, and coefficient of dispersion;

(2) Criteria to be included in a compliance audit of assessment practices;

(3) Conditions under which a certificate of compliance may be issued to a county;

(4) Procedures for determining the valuation of agricultural buildings and structures;

26.428.3926.428.40 23 1253 For(5) purposesProcedures offor thisdetermining section, if during the assessmentvaluation sampleof perioddwellings theon propertyagricultural hadland aand changeautomobile ingarages its use or classification,portions or had an addition, "intertemporal average value" means the olympic average of thebuildings fairused market value of the property, as determinedautomobile pursuantgarages; to § 10-6-105, during all the assessment years, including the current assessment year, since the change in the use or classification of the property, or since the addition to the property.

An(6) additionApplication to an existing structure affixed to land, which results in an increase in the assessed value of thecropland structureand ofnoncropland fortyincome percentvalues; or less, does not affect the period over which the intertemporal average value is determined.

The(7) adjustmentApplication in the taxable value of owner-occupiedsoil single-familyclassification dwellingsstandards; and nonagricultural property under this section may not result in an increase in taxes imposed on agricultural property by any taxing district.

and (8) Procedures for making adjustments to the value of agricultural land pursuant to §§ 10-6-127 to 10-6-132, inclusive;