As discussions continue across the county about essential programs, services, and infrastructure upgrades — and what they might ultimately cost taxpayers — a newly signed law is worth noting.
Senate Bill 216 (SB 216), recently signed into law by Governor Larry Rhoden, is designed to give homeowners some relief by capping how much their assessed property values can increase each year. The law also places limits on certain property tax hikes, aiming to prevent sudden and steep increases, especially in fast-growing communities.
“SB 216 is a win for South Dakota homeowners,” Rhoden said.
“This bill is impactful and workable, and it will certainly slow down any future tax increases.”
For homeowners, this means a more predictable property tax bill each year. The law limits assessment increases for owner-occupied homes to 3% annually for the next five years, unless there are significant changes to the property, like new construction or reclassification. This is a significant shift for property owners in areas experiencing rapid growth, where rising home values often lead to higher tax bills.

Local governments and school districts could face tighter budgets due to the restrictions. Critics warn the law may force cities and schools to seek alternative funding sources to maintain essential services and infrastructure projects.
Rhoden hinted however, that additional property tax relief measures could be coming.
“This bill was an important step forward, but we are not done,” he said.
A further breakdown of the new law:
● Counties, municipalities, and other taxing districts cannot increase property tax revenue by more than 3% per year or the state index factor, whichever is lower. Exceptions exist for bonds, court-ordered judgments, and tax-increment financing districts.
● School boards can still levy capital outlay taxes, but revenue growth from these taxes is now capped at 3% per year. Any additional increases beyond this cap would require voter approval.
● Homeowners earning less than $55,000 (single-member households) or $65,000 (multi-member households) may qualify for a property tax assessment freeze. These income thresholds will rise annually with inflation.
● Homes valued over $500,000 do not qualify for the assessment freeze unless the homeowner was previously enrolled in the program.