(A) All new industrial or commercial structures or additions to existing structures, added to real property, which new structures or additions have the full and true value specified in SDCL § 10-6-35.1 ($30,000 in 2005), as the same may be in effect from time to time, shall be taxed pursuant to the following assessed value formula during the five tax years subsequent to the completion of construction:
(1) The full and true value of such structures or additions shall be determined in the usual manner by the Director of Equalization.
(2) For the first tax year following construction, no portion of the taxable value shall be used for taxation purposes.
(3) For the second year following construction, 20% of the taxable value shall be used for taxation purposes.
(4) For the third year following construction, 40% of the taxable value shall be used for taxation purposes.
(5) For the fourth year following construction, 60% of the taxable value shall be used for taxation purposes.
(6) For the fifth year following construction, 80% of the taxable value shall be used for taxation purposes.
(7) For the sixth and all subsequent tax years following completion of construction, such structures or additions shall be taxed in the same manner as all other similar industrial or commercial property within the city.
(B) The taxable value of such structures or additions during any of the five tax years subsequent to the completion of their construction may not be less than their taxable value in the year preceding the first year of the tax years following construction.
(C) Any such structures or additions, the construction of which is only partially completed on any assessment date shall be assessed for taxation purposes in the usual manner.
(Prior Code, § 6B.0102) (Res. 2020-04, passed 8-11-2020)