SB 97 — adjust a limit on the percentage increase in revenue payable from property taxes.

97G26.296.19 101st Legislative Session 97 South Dakota Legislature Senate Bill 97 AMENDMENT 97G FOR THE INTRODUCED BILL Introduced by:

Senator Deibert An Act to adjust a limit on the percentage increase in revenue payable from on new growth allowed in the calculation of property taxes.

After applying the index factor, a taxing district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal valuevalue. growth factor.

For taxes payable in 2027, 2028, 2029, 2030, and 2031, an increase in revenue payable to a taxing district allowed under this paragraph may not exceed three five percent:percent.

(1) For a taxing district where the growth factor is no greater than three percent, the percentage increase in revenue payable to the taxing district allowed under this paragraph is equal to the growth factor;

(2) For a taxing district where the growth factor is greater than three percent, the percentage increase in revenue payable to the taxing district allowed under this paragraph is equal to the sum of:

(a) Three percent;

and Overstrikes indicate deleted language.

97G 2 97 (b) Sixty percent of the amount of the growth factor in excess of three percent.

Any taxing district created after the effective date of thisOverstrikes sectionindicate isdeleted exemptlanguage. from the limitation provided by this section for a period of two years immediately following its creation.

26.296.19 2 97 this section is exempt from the limitation provided by this section for a period of two years immediately following its creation.

For purposes of this section, "growth factor" means the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal value.

Taxes collected pursuant to the levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest Overstrikesthereon, indicatebut deletednot language.to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.

97G 3 97 thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.

After applying three percent, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chaptersOverstrikes 10-4,indicate 10-6,deleted 10-6A,language. and 10-6B, except § 10-6-113, only if assessed the same as property of equal value.

26.296.19 3 97 chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal value.