Sales and Property Tax Refund for Senior and Disabled Citizens (Circuit Breaker)

South Dakota

2020

Benefit Varies with Income

Other Variation in Receipt of Benefits

Circuit Breaker

The benefit is a refund for sales or property taxes. The benefit is determined according to a sliding scale of relief. For single households, there are 25 brackets with refunds ranging from 35% of taxes paid to 11% based on income thresholds. For multi-member households, relief is determined by 19 brackets with refunds ranging from 55% of taxes paid to 19% based on income thresholds. In determining income level, income may be reduced for property taxes paid, up to $400. There is no limit on benefits, but benefits may be pro-rated if the appropriation is not sufficient. Applications for refunds on the prior year's taxes must be filed annually between 1 May and 1 July in each year the applicant qualifies.

Direct payment to taxpayer

Residential

Only primary residences are eligible. The portion of the property eligible for the refund includes the house, condominium, apartment, or manufactured home which is taxed as a separate unit included the lot on which it is located or one acre of surrounding land (whichever is less), and the garage whether attached or unattached.

Age

Disability

Homeowner

Income Ceiling

Veteran

Other Criteria

The claimant must be a head of household who has been a South Dakota resident for the entire previous year with an annual income not exceeding the ceiling on the income schedule. The claimant must have owned the property for at least 3 years or have been resident of the State of South Dakota for at least 5 years. The claimant must be 65 years of age or older, or must be disabled prior to January 1st of the year in which the tax is levied. For the 2019 benefit (filed in 2020): if the claimant lives alone, his or her 2019 income may not exceed $12,760. If the claimant lives in a household with other individuals, combined 2019 household income may not exceed $17,240. Income levels are identified in the annual legislation that established the appropriation. Disabled claimants are those qualified to receive Social Security Disability benefits, Supplemental Security Disability benefits, or are veterans with a rated disability of 60% or higher. Disability must be verified annually upon applying for the benefit by sending a copy of the applicant's medicare card or social security certificate of award.

Local government is unable to exercise an option

No local option regarding program features

State reimburses all of the local government tax loss

The program is funded through an annual appropriation from the South Dakota Legislature. Benefits may be pro-rated if too little money is appropriated for the program. The state disburses benefits directly to the claimant.

SD101_RR20