A JOINT RESOLUTION, Proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting to a flat rate the real property taxes.

Be it resolved by the Legislature of the State of South Dakota:

Section 1. That at the next general election held in the state, the following amendment to Article XI of the Constitution of the State of South Dakota, as set forth in section 2 of this Joint Resolution, which is hereby agreed to, be submitted to the electors of the state for approval.

Section 2. That Article XI, § 2 of the Constitution of the State of South Dakota, be AMENDED:

§ 2. To the end that the burden of taxation may be equitable upon all property, and in order that no property which is made subject to taxation shall escape, the Legislature is empowered to divide all property, including moneys and credits as well as physical property, into classes and to determine what class or classes of property shall be are subject to taxation and what property, if any, shall not be is not subject to taxation. Taxes shall Except as otherwise required in this section, taxes must be uniform on all property of the same class, and shall must be levied and collected for public purposes only. Taxes may be imposed upon any and all property, including privileges, franchises, and licenses to do business in the state. Gross earnings and net incomes may be considered in taxing any and all property, and the valuation of property for taxation purposes shall may never exceed the actual value thereof. The Legislature is empowered to impose taxes upon incomes and occupations, and taxes. Taxes upon incomes may be graduated and progressive, and reasonable exemptions may be provided.

For taxes payable in 2028, the maximum amount of all ad valorem taxes on real property is the lesser of the tax due on the property in 2027, or the greater of the applicable percent of the most recent sales price of the property or the taxes due in 2020. For each year thereafter, the maximum amount of all ad valorem taxes on real property may not exceed the greater of the taxes due in the previous year or the applicable percent of the most recent sales price of the property, if ownership of the property changes in a year.

For purposes of this section, "applicable percent" means one percent if it is owned by a person who resided in this state for at least half of the year preceding the year in which the taxes are due, or two percent if it is owned by a person who does not reside in this state for at least half of the year preceding the year in which the taxes are due.