Local Option Property Tax Reduction from Municipal Taxes for the Elderly and Disabled

South Dakota

2017

Benefit Varies with Income

Circuit Breaker

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 range of reduction is 55% if household income is less than $5,640 to 22% if less than $7,765, income beyond which negates eligibility. For single-member households, the range of reduction is 35% if household income is less than $4,200 to 16% if less than $5,758. In determining income level, income may be reduced for 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.

Credit to the property tax bill

Residential

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

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Surviving Spouse

Other Criteria

The head of a household must be 65 years of age or older or disabled prior to 1 January. The person claiming a reduction must have owned and resided on the property for which the reduction is claimed for at least 5 years. A claim for reduction can only be made for a single family dwelling as defined by the state, which includes a house, condominium, apartment, or manufactured home that is assessed as a separate unit. For multiple-member households, the range of reduction is 55% if household income is less than $5,640 to 22% if less than $7,765, income beyond which negates eligibility. For single-member households, the range of reduction is 35% if household income is less than $4,200 to 16% if less than $5,758. In determining income level, income may be reduced for property taxes paid.

Local government must take action to opt out

Local option regarding program features

Local government covers all of its tax loss

The municipal property tax reduction program is a voluntary program for cities; as of 2012, only Rapid City participates in the program. The division does not collect statistics for this program.

SD104_RR17