Sales and Property Tax Refund for Senior and Disabled Citizens

State

South Dakota

Year

2007

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

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.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

Only primary residences are eligible.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Veteran

Description of Eligibility Criteria

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 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_RR07

Footnotes

Since residents can claim either a property tax or sales tax refund whichever is greater, the maximum sales tax refund in the lowest bracket for single households is $258 and $581 for multi-member households.

Sources

S.D. Codified Laws §10-18A (in effect for 2007)
L. 2006, c. 42

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