CHAPTER 84

(SB 172)

Conditions under which counties may levy taxes
in certain townships, revised.


         ENTITLED, An Act to  revise the conditions for increasing the property tax levy in certain unorganized townships.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 10-13-35 be amended to read as follows:

     10-13-35.   This section does not apply to school districts. For taxes payable in 1997, and each year thereafter, the total amount of revenue payable from taxes on real property within a taxing district, excluding the levy pursuant to §   10-13-36, may increase no more than the lesser of three percent or the index factor, as defined in §   10-13-38, over the amount of revenue payable from taxes on real property in the preceding year, excluding the amount of taxes levied pursuant to §   10-13-36. After applying the index factor, a taxing district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except §   10-6-31.4, only if assessed the same as property of equal value. A taxing district may increase the revenue it receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 1997, which are subject to referendum, scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose of paying a judgment against such taxing district. Any taxing district created after the effective date of this section is exempt from the limitation provided by this section for a period of two years immediately following its creation. If a township is abolished pursuant to §   8-1-23, the newly unorganized area of the county not

included in any municipality, organized civil township, or county road district organized pursuant to chapter 31-12A is considered a new taxing district for the purpose of allowing the county to levy taxes on real property for maintaining secondary roads in such area as required by §   31-12-26 and providing fire protection authorized by chapter 8-2.

     Section  2.  That chapter 10-13 be amended by adding thereto a NEW SECTION to read as follows:

     If a township is abolished pursuant to §  8-1-23 and there was previously no unorganized territory in the county, the county levy for maintaining secondary roads in such area as required by §  31-12-26 and providing fire protection pursuant to chapter 8-2 are exempt from the limitation provided by §  10-13-35 for a period of two years immediately following the township's abolishment.

     Section  3.  That chapter 10-13 be amended by adding thereto a NEW SECTION to read as follows:

     Any county which prior to January 1, 1996, contained no unorganized territory and as of July 1, 2004, contains unorganized territory as a result of the dissolution of one or more townships pursuant to §  8-1-23, is, for such unorganized territory and taxes payable in 2005 and 2006, exempt from the tax limitation imposed by §  10-13-35 for the purpose of establishing an appropriate levy for secondary roads pursuant to §  31-12-26 and for fire protection pursuant to chapter 8-2.

     Signed February 26, 2004.
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