Variations in Receipt of Benefit
Benefit Varies with Income
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 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.
How is Benefit Disbursed
Credit to the property tax bill
Eligible Property Type
Characteristics of Eligible Property
Only single family homes are eligible for property tax deferral. Single family homes include houses, condominium apartment, or manufactured homes.
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. 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 no more than 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 no more than $4,200 to 16% if less than $5,758. In determining income level, income may be reduced for property taxes paid.
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
The municipal property tax reduction program is a voluntary program for cities; as of 2019 only Rapid City participates in the program. The division does not collect statistics for this program.
[https://www.state.sd.us/eforms/secure/eforms/E1295V17-ApplicationForPropertyTaxReductionFromMunicipalTaxesForTheElderlyAndDisabled.pdf Accessed 11/12/2021]
View Archived Source
South Dakota Department of Revenue Guide for Municipal Property Tax Reduction Local option
[https://dor.sd.gov/Taxes/Property_Taxes/PDFs/property_tax_reduction_from_muni.pdf Accessed 02/19/2021]
View Archived Source