Local Option Property Tax Reduction from Municipal Taxes for the Elderly and Disabled (Circuit Breaker)

State

South Dakota

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The benefit is a reduction in city property taxes due the year following the application. The percentage of reduction in property taxes is based on a graduated income scale. For multiple-member households, the largest benefit is a reduction of 55% for income below $5,640, and the smallest benefit is a reduction of 22% for income between $7,647 and $7,764. For single-member households, the largest benefit is a reduction of 35% for income below $4,200, and the smallest benefit is a reduction of 17% for income between $5,670 and $5,757.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only single family homes are eligible for the property tax reduction. Single family homes include houses, condominium apartment, or manufactured homes.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

The head of a household must be 65 years of age or older or disabled prior to 1 January in the year the taxes were levied. The person claiming a reduction must have owned and resided on the property for which the reduction is claimed for at least 5 years. For multiple-member households, income must be less than $7,765; a higher income negates eligibility. For single-member households, income must be less than $5,758. In determining income level, income may be reduced for property taxes paid. An un-remarried surviving spouse is also eligible so long as they continue to live in the qualified residence.

Local Option in Adoption of Program

Local government must take action to opt out

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Enrollment Data

The municipal property tax reduction program is a voluntary program for cities; as of 2022 only Rapid City participates in the program. The division does not collect statistics for this program.

Record ID

SD104_RR22

Footnotes

Program has only been approved in Rapid City. No person who receives a property tax refund or a retail sales and service tax refund or a real property tax assessment freeze may be denied a property tax reduction under this chapter because of such refund or freeze. In determining income level, income may be reduced by the amount of property taxes paid. Applications for the reduction are due each year by 1 April and must be submitted to the local tax office of the participating municipality.

Sources

S.D. Codified Laws § 10-6B-1 ~ § 10-6B-15 (in effect for 2022)
South Dakota, Department of Revenue, Reduction from Municipal Tax for the Elderly and Disabled Brochure (May 2021, for application in 2022)
[https://web.archive.org/web/20220127120744/https://dor.sd.gov/media/ztzhe40b/municipal-tax-relief-elderly-disabled-brochure.pdf Accessed 11/09/2023]
View Archived Source

Form PT38A not available for this year.
South Dakota, Department of Revenue, Relief Programs
[https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/ Accessed 11/09/2023]
View Archived Source

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