Property Tax Deferral (Property Tax Homestead Exemption)

State

South Dakota

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

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.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

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.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

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; and have a household income less than $16,000 (single) or $20,000 (combined household). "Income" is your federal adjusted income plus any other income (including Social Security payments). Surviving spouse of someone previously eligible may be eligible if not remarried.

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

Record ID

SD103_RR22

Footnotes

The property taxes and interest that are not collected may not exceed the value of the property upon which the taxes are imposed. Qualification for this program makes one ineligible for the Property and Sales Tax Refund program. Applications for the deferral must be made annually by 1 April of each year for which the applicant wishes to defer taxes.

Sources

S.D. Codified Laws § 43-31-31 ~ § 43-31-41 (in effect for 2022)
South Dakota, Department of Revenue, Homestead Exemption Program (May 2021, for application in 2022)
[https://web.archive.org/web/20220127120349/https://dor.sd.gov/media/5lrpvndw/homestead-exemption-brochure.pdf Accessed 11/08/2023]
View Archived Source

Form PT38C (application form) not available for this year.

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