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 for property taxes paid.
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 is 65 years of age or older or is disabled, prior to 1 January; and the person claiming a reduction has owned and has resided in the property for which the reduction is claimed for at least 5 years; and a claim for reduction can only be made for a single family dwelling.
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; currently, only Rapid City participates in the program. The division does not collect statistics for this program.