Variations in Receipt of Benefit
No Variation in Receipt of Benefits
The benefit is a deferral of payment of property taxes until the home is sold or otherwise transferred. Deferred taxes constitute a lien on the property and must be paid along with the interest (4% accrual each year) before the property can be transferred. The amount of property taxes deferred may not exceed the value of the property. Applications for the deferral must be made annually by 1 April of each year for which the applicant wishes to defer taxes.
How is Benefit Disbursed
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, and the land upon which they are located up to a maximum of 1 acre.
Description of Eligibility Criteria
In order to be eligible, an applicant must: be at least 70; have owned a single-family dwelling for at least 3 years, or have been a resident of South Dakota for at least 5 years; resided for at least 8 months of the previous calendar year in the residence for which the tax deferral is being sought; have a household income less than $16,000 (single) or $20,000 (combined household). Unremarried surviving spouses of heads of households meeting these conditions also are eligible.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
Local government covers all of its tax loss
South Dakota Department of Revenue Application Form 1294-V15 for Property Tax Deferral for the Elderly [https://www.state.sd.us/eforms/secure/eforms/E1294V15-ApplicationForPropertyTaxHomesteadExemption.pdf Accessed 10/11/2018] View Archived Source
South Dakota Department of Revenue (2014) 'Homestead Exemption' Tax Deferral Program Brochure [http://dor.sd.gov/Taxes/Property_Taxes/PDFs/PropTaxReduction2014_Homestead.pdf Accessed 10/11/2018] View Archived Source