Sales and Property Tax Refund for Senior and Disabled Citizens

South Dakota

2016

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 for income below $5,630 to 11% for income between $11,611 and $11,880. For multi-member households, relief is determined by 19 brackets with refunds ranging from 55% of taxes paid for income below $9,520, to 19% for income between $15,658 and $16,020. 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.

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 claimants are qualified to receive Social Security Disability benefits, Supplemental Security Disability benefits, or are veterans 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.

SD101_RR16