Implementation of SB 216 Targets Property Tax Relief for South Dakota Homeowners
- Steve Jurrens
- 7 hours ago
- 2 min read
Northeast Radio SD News – South Dakota - State officials are outlining the rollout of Senate Bill 216, a legislative package passed during the 2025 Session designed to alleviate property tax burdens for owner-occupied properties.
The law, which officially went into effect July 1, 2025, utilizes three primary avenues for relief: a valuation limitation on residential properties, a cap on local government budget growth, and expanded access to the state’s Assessment Freeze program.
According to the South Dakota Department of Revenue, different county offices are now implementing specific portions of the law as the 2026 assessment year begins.
Valuation Limitations
The Directors of Equalization are now applying a 3% valuation limitation. Unlike some tax caps, this 3% limit does not apply to individual homes. Instead, the law limits the total countywide assessed value of all owner-occupied single-family dwellings combined.
Homeowners should note that individual property values may still fluctuate based on market conditions. Additionally, the countywide total can still exceed the 3% growth limit if there is significant new construction, additions, or major renovations within the county.
Budgetary Restrictions for Taxing Districts
County Auditors will manage new budgetary limitations starting with taxes payable in 2027. Under the new law, the “growth factor” used by taxing districts to request annual property taxes is now capped at 3%. This is in addition to the existing 3% Consumer Price Index (CPI) threshold.
State data suggests this change will target high-growth areas. Currently, only three of South Dakota’s 66 counties have a five-year average growth exceeding 3%, and only 5% of school districts are expected to be impacted by the new cap.
Assessment Freeze Expansion
For seniors and individuals with disabilities, the County Treasurer’s offices are now processing updated applications for the Assessment Freeze property tax relief program.
The 2026 application cycle is the first to reflect increased income and property valuation limits, as well as changes to residency requirements, allowing more residents to qualify for the program. Updated applications became available in December.
Residents seeking more information on these relief programs can visit the Department of Revenue website or contact their local county courthouse.
