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

State

South Dakota

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Other Variation in Receipt of Benefits

Benefit Type

Circuit Breaker

Benefit

The benefit is a refund for sales or property taxes. The benefit is determined according to a sliding scale of relief. 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. For single households, there are 25 income threshold brackets with refunds ranging from 35% of taxes paid to 11%. For multi-member households, relief is determined by 19 income threshold brackets with refunds ranging from 55% of taxes paid to 19%.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

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

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Veteran

Other Criteria

Description of Eligibility 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 applicant must own and occupy the property as their primary residence. 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 2021 benefit (filed in 2022), 2021 income may not exceed $13,653 for a single-member household or $18,465 for a multi-member household. 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 veterans with a disability rating 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 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

State reimburses all of the local government tax loss

Description of State Funding for 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.

Record ID

SD101_RR22

Footnotes

Effective for applications in 2022: The income limits are increased such that the highest qualifying income for a single member household is increased from $12,880 to $13,653, and the highest for a multi-member household is increased from $17,420 to $18,465. This change is pursuant to 2022 S.D. Sess. Laws ch. 31 (HB1014). 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.

Sources

S.D. Codified Laws § 10-18A-1 ~ § 10-18A-16 (in effect for 2022)
South Dakota, Department of Revenue, Sales or Property Tax Refund for Seniors and Disabled Application (2021, for application in 2022)
[https://web.archive.org/web/20220527142959/https://dor.sd.gov/media/1ykdtbxi/2021-sales-property-tax-refund-elderly-disabled.pdf Accessed 11/09/2023]
View Archived Source
South Dakota, Department of Revenue, Relief Programs
[https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/ Accessed 11/09/2023]
View Archived Source
2022 S.D. Sess. Laws ch. 31 (HB1014)

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