July 3, 2022

New Construction Tax Incentive

At their last meeting the Fall River County Commissioners discussed the importance of publicizing the county’s tax incentive for new construction and renovation.  In 2011 the commissioners passed a resolution pursuant to South Dakota Classified Law 10-6-35.1 & 10-6-35.2 which provides a tax break to new construction and renovations for agricultural and commercial structures.

To qualify for the program:

  • Structures must be classified as agricultural or commercial (residential structures with four units or more are considered commercial)
  • The increase in value must exceed $10,000 for agricultural structures or $30,000 for commercial structures.
  • Structures must be on a permanent foundation.

Benefits:

  • Structures that meet the criteria are entitled to no taxes for the first five years.
  • For renovations this is no taxes on the additional value. For example if you had a $100,000 structure and after the renovation it was appraised at $140,000 you would continue pay taxes on just the $100,000 for the next five years.

In the sixth year the property is assessed at its full value for tax purposes.  For more information on the program you can see the original resolution or contact the Director of Equalization’s office at 605-745-5136.

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