November 25, 2024

Tax Assistance Programs

Tax Assistance

  • For Everyone
    • Owner Occupied Dwelling
    • New Construction Tax Initiative
    • Renewable Resource Energy Assessment Credit
  • For Agriculture
    • Ag Status
    • Riparian Buffer Strip
    • Ag Soil Adjustment
  • For Elderly or Disabled
    • Assessment Freeze for the Elderly & Disabled
    • Property Tax Homestead Exemption
    • Property Tax Reduction for Paraplegics
  • For Veterans
    • Property Tax Exemption for Disabled Veterans
    • Property Tax Exemption for Paraplegic Veterans
  • For Tax Exempt Entities
    • Tax Exempt Status for Private Organizations

 

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For Everyone

 

Owner Occupancy Credit

Owner occupancy makes a property eligible for a reduced levy for school general fund taxes.

To qualify:

  • you must own and live in the dwelling for which you are applying for owner occupancy.
  • you must not claim any other property as a principle residence

Form: Owner Occupancy Online Form

Forms must be filed with the Department of Equalization by March 15th.

 

New Construction Tax Incentive

Fall River County has the following tax incentive for agricultural and commercial buildings.

To qualify:

  • New construction or renovations to agricultural buildings exceeding $10,000
  • or
  • New construction or renovations to commercial buildings exceeding $30,000
  • Structures must be on a permanent foundation
  • Residential structures of 4 or more units also qualify

Benefits:

  • For new construction: the first four years following construction the taxes will be calculated at 20%, 40%, 60% & 80% of the building value.
  • For renovation: the first four years following renovation will be taxed at 20%, 40%, 60% & 80% of the change in value. If the building was initially valued at $100,000 and after renovation it is valued at $140,000 then the partial taxes (20%, 40%, 60%, 80%) will be paid on the $40,000 of added value.

IN THE FIFTH YEAR PROPERTIES WILL GO TO FULL VALUE. For further information see Resolution 2020-40.

 

Renewable Resource Energy Assessment Credit

This is an assessment credit, not a tax credit. The deduction comes off the assessed value. This six year credit begins upon the completion of the energy system. The amount of credit is the difference in the assessed value with the system installed versus the assessed value without the system (having a regular heating/cooling system).

Year 1, 2, and 3 – the credit will be the difference in the assessed values as described above
Year 4 – the credit will be 75% of the base
Year 5 – the credit will be 50% of the base
Year 6 – the credit will be 25% of the base

Six years after installation of the system the credit expires.

Application: Renewable Resource Energy Assessment Credit

Applications must be filed between November 1 and December 10. The application only needs to be made once. Applications should be filed with the Department of Equalization in Hot Springs.

For Agriculture

 

Ag Status

For land to be classified as agricultural the primary and main use of the land must be devoted to agricultural pursuits, such as the harvesting of crops or the raising of livestock.

In addition the land must meet either an acreage requirement or a minimum income.

  • Fall River County’s minimum acreage requirement is 40 acres.
  • If the land does not meet the acreage criteria, then a minimum gross income of at least $2,500 must be shown to have come from an agricultural pursuit in three of the previous five years.

Riparian Buffer Strip

South Dakota agricultural property owners with riparian buffer strips (a vegetated area near a body of water) have until October 15 to apply for a property tax incentive. Eligible waterways are determined by the Department of Agriculture and Natural Resources with additional waterways as allowed by the county commission. If you have questions about the eligibility of your land, contact your local Director of Equalization. To be eligible applicants must meet the following requirements:

  • The land must consist of existing or planted perennial vegetation.
  • The buffer strip has to be a minimum of 50 feet wide and can be a maximum of 120 feet wide. The measurement starts at the top of the bank or where the vegetation starts—whichever is closest to the water.
  • The vegetation cannot be harvested or mowed before July 10, unless the riparian buffer strip is impacted by center pivot irrigation, then the perennial vegetation may not be harvested or mowed before June 25. A minimum of 4 inches of vegetation must be maintained at all times.
  • The land may not be grazed from May through September.

Ag Soil Adjustment

Under South Dakota law, SDCL 10-6-131, landowners may submit a Request for Ag Land Adjustment to the Director of Equalization in the county the land is located in. The county Director of Equalization has the option to make an adjustment to the assessed value of agricultural land where a factor affects the productivity of the land. Land can be adjusted for the following reasons:

  • Location;
  • Size;
  • Soil Survey Statistics;
  • Terrain;
  • Topographical Condition;
  • Surface Obstruction;
  • Climate; or
  • Accessibility

To request an adjustment, complete this form. You must be able to provide documentation to support the adjustment. This form is due by September 1 for consideration for your next year’s assessment. (The State’s online form is only available from July 1st to September 1st each year. Contact the DOE office if you wish to fill out a paper copy. [email protected] 605-745-5136)

For Elderly or Disabled

 

Assessment Freeze for the Elderly and Disabled

The Freeze on Assessments Program prevents the homeowner’s property from increasing in value, for tax purposes. This means that as the value of the home increases, the homeowner will pay tax on the former (lower) value. Property is defined as the house, garage, and the lot upon which it sits, or one acre, whichever is less.

To qualify:

  • you must be 65 year of age or older, or disabled
  • you must own the home or have retained a life estate in the property
  • your federal gross income plus any income not included in that figure (this includes Social Security Payments) must be lower than:
    • $40,290 for single member household (2024 value, values change every year)
    • $51,801 for multiple member household (2024 value, values change every year)
  • The full and true market value of the property must be less than $345,340 unless the applicant has received the assessment freeze in a preceding year on that property.

Form: Assessment Freeze for the Elderly & Disabled

Forms should be turned in to the Fall River County Treasurer on or before April 1st. The assessment freeze must be applied for yearly. Questions concerning applications and income should be directed to the Treasurer at 605-745-5145.

Homestead Exemption

The homestead exemption is for individual 70 year of age or older. This program delays payment of property taxes until a property is sold. The property taxes become a lien on the property with interest and penalties added annually. In many ways this program works like a reverse mortgage. Deadline for the program in April 1st, contact the treasurer for more information.

The Paraplegic Reduction Program

The reduction program is operated using a graduated income scale on income earned in the previous year. See following tables for information. Widows and widowers are also eligible for this program.

Single Member Household Multiple Member Household
If household income is between: Property tax reduction: If household income is between: Property tax reduction:
$0 – $11,670 100% $0 – $15,730 100%
$11,670 – $12,670 75% $15,730 – $16,730 75%
$12,670 – $13,670 50% $16,730 – $17,730 50%
$13,670 – $14,670 25% $17,730 – $18,730 25%
more than $14,670 0% more than $18,730 0%

To qualify:

  • the paraplegic applicant must own or occupy their property, or the unremarried widow / widower of such paraplegic.
  • the applicant must meet the income guidelines shown in the tables above

Form: Paraplegic Property Tax Reduction Form

Forms must be filed yearly with the Department of Equalization in Hot Springs on or by November 1st.

For Veterans

 

The Property Tax Reduction for Disabled Veterans Program

The Property Tax Reduction for Disabled Veterans Program exempts the first $150,000 of valuation of a disabled veteran’s property from property taxes. (As of July 2024 the exemption will increase to $200,000. This will effect the assessment in 2025 for taxes payable in 2026). Under the program property is defined as the house (including manufactured and mobile homes), garage, and the lot upon which it sits or one acre, whichever is less. The property must be classified as owner-occupied as of November 1st. Widows and widowers are eligible for this program.

To qualify:

  • the veteran must have been rated permanently and totally disabled due to a service-connected disability based on the established rating schedule used by the Veteran’s Affairs Rating Board
  • property must be owned and occupied by the disabled veteran
  • property must be classified as owner occupied

Proof of disability can be obtained by calling the Sioux Falls VA Regional Office at 1-800-827-1000 and requesting that they send you a statement verifying that you are permanently and totally disabled as the result of a service-connected disability(ies). Copies of these forms must be included in the application. We also have a local Veterans Services Officer, Dan. His contact information can be found here.

Application: Disabled Veteran Property Tax Exemption Form

The application is filed with the Department of Equalization in Hot Springs. The form must be filed on or before November 1st for the following assessment year and the taxes payable in the next year. Example: An application by November 1, 2024 is for the 2025 assessment year, and the property taxes payable in 2026.

The Paraplegic Veteran’s Exemption

The exemption program exempts a veteran’s property from all property taxes. The injury to the applicant does not have to be service related in order to qualify for the program. Widows and widowers of veterans are also eligible for the exemption program.

To qualify:

  • the paraplegic veteran applicant must own the property for which they are seeking an exemption

Form: Paraplegic Veteran Property Tax Exemption Form

Forms must be filed yearly with the Department of Equalization in Hot Springs on or by November 1st.

Tax Exempt Status for Private Organizations

This exemption is for religious, charitable, benevolent, non-profit healthcare, and education groups. If you think your organization may qualify please contact the Department of Equalization at (605) 745-5136. This exemption must be applied for yearly, applications are due by November 1st. Organizations that received tax exempt status the previous year will be sent forms to renew their status.

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