(A) The following properties shall be, and hereby are, specifically classified for the purpose of taxation pursuant to SDCL § 10-6-137:
(1) Any new industrial or commercial structure, or any addition, renovation, or reconstruction to an existing structure, located within a designated urban renewal area, as defined in SDCL § 11-8-4, if the new structure, addition, renovation, or reconstruction has a full and true value of $30,000 or more;
(2) Any new industrial structure, including a power generation facility, or an addition to an existing structure, if the new structure or addition has a full and true value of $30,000 or more;
(3) Any new nonresidential agricultural structure, or any addition to an existing structure, if the new structure or addition has a full and true value of $10,000 or more;
(4) Any new commercial structure, or any addition to an existing structure, except a commercial residential structure as described in SDCL § 10-6-137(5), if the new structure or addition has a full and true value of $30,000 or more;
(5) Any new commercial residential structure, or addition to an existing structure, containing four or more units, if the new structure or addition has a full and true value of $30,000 or more;
(6) Any new affordable housing structure containing four or more units with a monthly rental rate of the units at or below the annually calculated rent for the state’s 60% area median income being used by the state Housing Development Authority, for a minimum of ten years following the date of first occupancy, if the structure has a full and true value of $30,000 or more;
(7) Any new residential structure, or addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to SDCL § 10-6-141, if the new structure, addition, or renovation has a full and true value of $5,000 or more. The structure shall be located in an area defined and designated as a redevelopment neighborhood, based on conditions provided in SDCL §§ 11-7-2 or 11-7-3; or
(8) Any commercial, industrial, or nonresidential agricultural property which increases more than $10,000 in full and true value as a result of reconstruction or renovation of the structure.
(B) Any structure classified pursuant to this section shall, following construction, initially be valued for taxation purposes in the usual manner, and that value shall be referred to in this section as the “pre-adjustment value”.
(C) The assessed value to be used for tax purposes of any structure classified pursuant to this section shall, following construction, be calculated as follows:
Tax year |
Percentage of pre-adjustment value
|
First tax year following construction | Land + 25% of the pre-adjustment value |
Second tax year following construction | Land + 25% of the pre-adjustment value |
Third tax year following construction | Land + 50% of the pre-adjustment value |
Fourth tax year following construction | Land + 75% of the pre-adjustment value |
Fifth tax year following construction | Land + 75% of the pre-adjustment value |
(D) The Board of County Commissioners may, if requested by the owner of any of the property described in division (A) above, not apply the formula described in division (C) above, in which case the full assessment shall be made without application of the formula. In waiving this formula for the structure of one owner, the Board of County Commissioners is not prohibited from applying the formula for subsequent new structures by that owner.
(E) For purpose of this section, the assessed valuation during any of the five years may not be less than the assessed valuation of the property year preceding the first year of the tax years following construction.
(F) Any structure that is partially constructed on the assessment date may be valued for tax purposes pursuant to this section and the valuation may not be less than the assessed valuation of the property in the year preceding the beginning of construction.
(G) Following the five-year period under this section, the property shall be assessed at the same percentage as is all other property for tax purposes.
(Res. 2020-20, passed 7-6-2020)
Statutory reference:
Related provisions, see SDCL §§ 10-6-137(1)(2)(3)(4)(5)(6)(7)(8)