Property Tax Reduction from Municipal Taxes for the Elderly and Disabled


South Dakota



Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

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.

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.

Eligibility Criteria




Income Ceiling

Surviving Spouse

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

Enrollment Data

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.

Record ID



No person who receives a property tax refund or a retail sales and service tax refund or a real property tax assessment freeze may be denied a property tax reduction under this chapter because of such refund or freeze.


S.D. Codified Laws § 10-6B-1 ~ § 10-6B-15 (in effect for 2012)
Property and Sales Tax Relief Programs (No date), Department of Revenue [ Accessed on 2/1/2013 via WayBack Machine] View Archived Source

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