Senate lets leased property tax class bill through
After few years of struggle on the Senate side, a bill creating a leased residential property tax classification found favor in the chamber.
An amended version of Senate Bill 100 passed the Senate on a 25-8 vote. The amendment removed the levy of $9.10/$1,000 of valuation, which was the same as commercial property levy where leased residential currently is housed, set in the initial version of the bill.
Sen. Deb Peters, SB 100’s prime sponsor, said the amendment “takes away the whole discussion about the levy” and allows the legislature to have a discussion “about affordable housing” in South Dakota.
During the committee hearing for SB 100, proponents of the bill contended the change in classification would allow interested parties to track the financial effects on renters, owners and school districts, which would receive a portion of the revenue generated by the property tax for their general funds in accordance with the state funding formula.
Sen. Bernie Hunhoff said the amended version of the bill allows for the “collecting of data so (legislature) can make a better decision.”
Opponents of the bill on the floor of the Senate opposed it on the basis of rental properties being similar to a for-profit business and there was no guarantee savings for leased property owners would be passed on to their renters.
ASBSD is monitoring SB 100, which now moves to the House. In the two previous sessions, past incarnations of the leased residential property class bill have been passed by Representatives.
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