South Dakota legislators will return to Pierre next week to wrap up the 90th legislative session.
On Tuesday (3/31), legislators will return for “Veto Day” with three bills up for review, but just one related to K-12 education.
Senate Bill 100, which proposed the creation of a leased residential property tax classification, was vetoed by Gov. Dennis Daugaard.
Proponents of SB 100 said the bill allows for the collection of data on leased residential property that will help the state make an informed decision on the need of the levy.
The final version of the bill – passed the Senate on 25-8 vote and House on a 40-27 vote – did not implement a levy amount for the leased residential property, but in the initial version of the bill set a levy of $9.10/$1,000 of valuation, which was the same as commercial property levy where leased residential currently is housed.
Daugaard cited the potential for the classification to spread the burden of raising local effort tax revenue to the other tax levies and that tenants of the leased properties are not guaranteed to see savings in rent payments just because owners receive a tax break.
ASBSD is monitoring the action and will provide an update through our ASBSD Legislative Summary.