Rolling back assessed values to a base year will automatically cause an increase in the tax rates for city and county governments. School general fund taxes will also need to be increased. Rapid City schools are at risk of losing over $3 million dollars in funding from non-general fund taxes.
Amendment D then applies these higher tax rates to the purchase price of property resulting in a tax hike for new residents, senior citizens moving to retirement homes and young families. It is simply unfair to force these new owners to pay higher taxes for the same public services.
Imagine buying a house that has been paying taxes of $4,700 a year only to find out that your taxes on that exact same house will be over $8,000!
Amendment D leaves too many issues unresolved. People that remodel homes could see taxes increase dramatically as the amendment simply says this is reason for "further adjustments" in assessed values.
Worst of all, Amendment D contradicts language that protects taxpayers from having taxable value higher than actual value. Amendment D requires assessed values to be based on purchase price – period.
Amendment D uses the same language as Proposition 13 in California that says values can only be reduced as a result of "destruction" to property. Courts have recently found that economic decline is not a reason for reducing values. This makes Amendment D a harsh policy for smaller communities struggling with declining markets.
Amendment D places an unfair tax system into the constitution. Vote no on Amendment D.