Sales and Property Tax Refund for Senior and Disabled Citizens

South Dakota

2006

Benefit Varies with Income

Circuit Breaker

The benefit is a refund for 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 for income below $3,750 to 11% for those with income between $9.731 and $10,000. For multi-member households, relief is determined by 19 brackets with refunds ranging from 55% of taxes paid for income below $6,250 of income, to 19% for income from $12,388 to $12,750. 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 too little money is appropriated for the program.

Direct payment to taxpayer

Residential

Only primary residences are eligible.

Age

Disability

Homeowner

Income Ceiling

Veteran

Claimant must have been a South Dakota resident for the entire previous year with an annual income not exceeding the ceiling. Also, the claimant shall 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 have been disabled during any part of the year or at least 66 years old on or before January 1 of the current year. Disabled means you’re qualified to receive Social Security Disability benefits, Supplemental Security Disability benefits, or you’re a veteran with a rated disability of 60% or higher.

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.

In fiscal year 2006, 3,251 elderly and disabled individuals and households received refunds totaling $556,520. Refund amounts ranged from $46 up to $581.

SD101_RR06