Property tax bill passes unanimously in Senate

The results were unanimous. Senate Bill (SB) 191 introduced by District 30 Sen. Amber Hulse passed on the Senate floor 35-0 Feb. 25. 

Going into the vote, Hulse said, “I knew we had built strong support, and I was pretty confident we would get it through the Senate, but I never take anything for granted. I worked hard to whip the votes and ensure my colleagues understood the urgent need for this bill, but seeing it receive such overwhelming backing—even from across the aisle—just reaffirms that this solution will work. This proves that when we focus on real issues affecting hardworking taxpayers and push back against unchecked government overreach, we can bring people together and get results.” 

Originally, Hulse introduced SB 191 Feb. 3 as “An Act to limit annual valuation increases on owner-occupied single-family dwellings.”

According to Hulse, SB 191 creates a split voter role in tax policy. For homeowners who owned their property in South Dakota before November 2020, SB 191 would roll back property valuations to 2020 levels with a three percent cap on annual valuation increases thereafter. 

For homeowners who purchased a home in South Dakota after November 2020, Hulse said, “Property valuations would be set at the fair market value at the time of purchase with future annual valuation increases also capped at three percent.” 

Moving forward, Hulse said, “New homebuyers would have their property valuations rolled back to the year they bought the home with subsequent annual increases limited to three percent.” 

When asked why SB 191 passed so overwhelmingly in the Senate, Hulse said, “Because the Legislature finally recognizes that we have a real crisis on our hands—one that the government created by allowing runaway assessments and out-of-control tax burdens. My bill directly addresses the root cause of this problem. 

“We didn’t just throw together a feel-good measure; we built a serious, well-researched solution that ensures accountability and fairness. The team that came together including Rep. Trish Ladner and former Rep. Dennis Krull did the hard work—research, outreach and negotiation—to fix the flaws of past efforts, and that’s why it succeeded where others failed.”

Since being introduced, SB 191 has garnered the sponsorship of Sens. Taffy Howard and Sue Peterson as well as Reps. Jack Kolbeck, Bobbi Andera, Tim Goodwin, Ladner and John Sjaarda.

“The increase in sponsors indicates growing legislative support for SB 191, reflecting a collective acknowledgment of the need to address rising property taxes and protect homeowners from unpredictable tax hikes,” said Hulse. 

After being introduced, SB 191 was referred to the Senate Taxation Committee where it was heard Feb. 21. During the process, two amendments were made. 

Amendment A altered the definition of SB 191 so it included nonagricultural property. It then read, “An Act to limit annual valuation increases on owner-occupied single-family dwellings and nonagricultural property.”

Amendment B included revisions to section four which discusses how SB 191 affects additions and expansions of property. 

The primary addition reads, “For purposes of this section, the increase in taxable value from improvements to owner-occupied property does not include additions to, or improvements of, existing structures affixed to the land if the improvements result in an increased valuation of 40 percent or less of the current valuation.”

Hulse said, “This provision allows homeowners to renovate or improve their homes without triggering a reassessment, provided the improvements are less than 40 percent of the home’s current value. This encourages homeowners to enhance their properties without fearing significant tax increases.” 

Later, a third amendment was made to remove all mentions of nonagricultural property from the bill. 

When asked about this change, Hulse said, “Nonagricultural property was removed due to concerns about uniformity within property tax classes and potential legal challenges. The South Dakota Department of Revenue highlighted that including nonagricultural property could create non-uniform taxation within the same class, leading to scrutiny under equal protection guarantees. This also would’ve shifted heavily to ag. So having only one category under this new scheme was the goal to help out homeowners first and foremost.” 

SB 191 passed in the Senate Taxation Committee with six votes in favor and no votes opposed.

On Feb. 26, SB 191 was read in the House. It was then referred to the House State Affairs Committee where it is scheduled for a hearing March 5 at 3 p.m.

“From there, it will likely move to the full House the following legislative day—either Thursday or early next week. I’m fully committed to seeing this through because South Dakotans can’t afford to wait any longer for relief,” said Hulse. 

Hulse said people can email her with concerns at Amber.Hulse@sdlegisla

ture.gov or email other legislators with support. Additionally, Hulse will be attending a legislative crackerbarrel sponsored by Elevate Rapid City Saturday, March 8 at Western Dakota Tech Event Center from 9-11 a.m.

For more information about SB 191, go to sdlegis

lature.gov/Session/Bill/25925.