South Dakota Property Tax

 

South Dakota Property Tax Information

Appeal Tax

BASIC ASSESSMENT INFORMATION

In South Dakota, it is the assessor's responsibility to assign your property a value equal to the amount for which it would sell on the open market. Therefore, the assessed value of your property should equal its market value, sometimes calledthe "true and full value." Assessors determine the market value of property by using a combination of the following three approaches:

Cost approach - the assessor estimates the cost of replacing the property (structures), reduces that amount by its age (depreciation), and adds the value of the land.
 

Market approach - the assessor compares the subject property to like properties that have recently been sold.
 

Income approach - the assessor uses the value of the projected income from like properties to determine value.

 

The assessor also classifies property as agricultural or non-agricultural. The assessor makes this determination by considering the amount of the owner's income derived from agriculture, the property's primary use and the property’s size. After determining the market value and the classification of a parcel of property, the assessor  sends a notice to the property owner. This assessment notice is to be mailed by March 1 of every year.

Owner-occupied single family dwelling - This designates that the property is to receive a lower levy for school general fund tax purposes. To be eligible the property owner must have filed an "Owner-Occupied Certificate" by March 15, of the past year. (Any property previously designated as owner-occupied would remain so, unless it sold or had a change in use.)
 

You may appeal your property's owner-occupied status. This appeal is made directly to the County Board of Equalization. In your appeal you must state that you meet the qualifications which are:


(1) You owned the property on November 1, 2008.
(2) You occupied the property on November 1, 2008.
(3) This is the only property you own that would receive the owner-occupied status.
(4) That the property is your principal place of residence
(5) You filed the certificate by March 15, 2009.
 

You may also appeal the taxable/exempt status of your property. This type of appeal is made directly to the County Board of Equalization. Decisions of County Board of Equalization may be appealed in the same manner as other decisions.

 


PROPERTY OWNER'S RIGHTS AND DUTIES


As the owner of real property in South Dakota, you have the right to ensure your property is being assessed at no more than market value and also assessed equitably in relationship to other properties. Any lessee responsible for payment oftaxes pursuant to the provisions of a lease shall be considered the taxpayer and may also appeal the valuation, classification, taxable status of the property. When you receive your assessment notice, it is your duty to review the notice to ensure the property is listed correctly. Also you need to check the assessed value. Ask yourself "If I sold this property, is this the amount I would expect to receive?" If it is higher than what you think you could sell it for, first talk to your county director of equalization. He/she can explain how the values were determined and show you sales of likeproperties that he/she used in determining your value. If you still disagree with the assessment on your property, your first step in the appeal process is to the local board of equalization. Your appeal must be for the total value of the property. Anappeal on just the structure value or just the land value will be considered an appeal of the entire property.

 

Mobile home owners - the same appeal process is used for registered mobile homes, however you are required to pay your current year taxes in a timely manner pending the outcome of the appeal. For any tax relief, the taxes would need to be paid under protest and file lawsuit for refund within 30 days of payment.

 

NOTE: The following people do not have to appeal to the local board before going to county board:


Non-residents - A property owner is considered a non-resident if the person resides outside the local board jurisdiction. A non-resident does not have to appeal to the local board before appealing to county board, but may do so if desired.Unorganized township property owners - as there is no local board for unorganized townships, these property owners appeal directly to the county board of equalization.

 

LOCAL BOARD


The first step in the appeal process is to the local board of equalization. The local boards consist of the township board of supervisors or the governing board of the municipality, and a member of the school board. The board's primary function isto determine that all taxable properties have been placed on the assessment roll and that a reasonable degree of equalization exists among these properties. The board, however, may only equalize assessments between individual properties. It may not change the level of assessment between entire classes of property, such as agricultural and non-agricultural.

To appeal to the local board, you must notify the clerk in writing of the local board, stating you wish to appeal the assessment of your property. The clerk must receive your notification by March 15, 2007. Postmarked by this date is considered timely. You should state the legal description of the property you are appealing and a brief explanation of why you are appealing, such as "property is higher than market value".Your local board clerk will notify you when your appeal will be heard by the local board. During this hearing, the form PT17 must be completed. If you appear at the hearing, the clerk will help you complete the form. Your explanation of yourappeal may be in person or in writing. It should state the reason you are appealing your assessment. You must also have evidence to prove your point. Just stating the value is too high is not enough. Suggested points are sales of propertiesyou believe are similar to your property. Also assessments of properties similar to yours are useful. Point out how the properties are comparable to your property.The local board must notify you in writing of the decision by March 30, 2007.
 

Property Tax Exemption for Disabled Veterans

Veterans that have been rated as permanently and totally disabled as the result of a service connected disability may be eligible for up to $100,000 of their property value to be exempt from property taxes.
 

 

Transferring property

A fee is hereby imposed at the rate of fifty cents for each five hundred dollars of value or fraction thereof upon the privilege of transferring title to real property in the State of South Dakota, which fee shall be paid by the grantor.

 


Important Dates

 

March 1 -

assessment notices must be mailed
 

March 15 -

last day to file for owner-occupied status with Director of Equalization Local Board of Equalization
 

last day to mail or file written appeal with clerk of local board
 

March 19 -

local board begins


March 23 -

local board ends


March 30 -

last day to receive written notice of local board's decision County Board of Equalization


April 3 -

last day to mail or file  written appeal with county auditor
 

April 10 -

county board begins


April 26 -

county board ends


April 27 -

last day to receive written notice of county board's decision Consolidated Board of Equalization
 

April 3 -

last day to mail or file  written appeal with county auditor
 

April 10 -

consolidated board begins
 

May 1 -

consolidated board ends
 

May 4 -

last day to receive written notice of consolidated board’s decisionOffice of Hearing Examiners
 

May 18 -

last day to mail or file a written appeal with: Appealing from County Board - you must appeal within 30 days after notice has been served of the decision.

Appealing from Office of Hearing Examiners - you must appeal within 30 days after notice of the decision.
 


South Dakota Counties

 
Success Stories
Nancy & Robert from Folsom, CA
Saved $2127
 
Michelle B. from Olathe, KS
Saved $978
 
Mike & Sandra from Wellington, FL
Saved $1187
 
Gary & Jen from Crestview, NJ
Saved $1688