§ 35.03 USE TAX.

   There is hereby imposed an excise tax on the privilege of use, storage, and consumption within the jurisdiction of the municipality of tangible personal or services purchased from and after January 1, 2004, at the same rate as the municipal sales and service tax upon all transactions or use, storage, and consumption, which are subject to the state’s Tax Act, SDCL § 10-46, and acts amendatory thereto.

(Ord. 558, passed 8-11-2003) Penalty, see § 35.99

§ 35.04 COLLECTION.

   Such tax is levied pursuant to authorization granted by SDCL § 10-52 and acts amendatory thereto, and shall be collected by the state’s Department of Revenue and Regulation in accordance with the same rule and regulations applicable to the state’s Sales Tax and under such additional rules and regulations as the Secretary of Revenue and Regulation of the state shall lawfully prescribe.

(Ord. 558, passed 8-11-2003) Penalty, see § 35.99

§ 35.05 SPECIAL TAX RATE; LODGING, ALCOHOLIC BEVERAGES, TICKETED AMUSEMENTS.

   (A)   There is hereby imposed, from and after January 1, 2008, an additional 1% rate of tax upon the gross receipts of all leases orientals of hotel, motel, campsites, or other lodging accommodations within the municipality for periods of less than 28 consecutive days; sales of alcoholic beverages, as defined in SDCL § 35-1-1, establishments where the public is invited to eat, dine, or purchase and carry out prepared food for immediate consumption, and ticket sales or admissions to places of amusement, athletic, and cultural events, notwithstanding the rate of tax established in §§ 35.02 and 35.03.

   (B)   Any revenues received under this section in excess of the amount received under §§ 35.02 and 35.03 may be used only for the following purposes: land acquisition; architectural fees; construction costs; payments for civic center, auditorium, or athletic facility buildings, including the maintenance, staffing and operations of such facilities; and the promotion and advertising of the municipality and its facilities, attractions, and activities.

(Ord. 580, passed 4-9-2007)

§ 35.06 DISCRETIONARY FORMULA; CERTAIN NEW STRUCTURES AND ADDITIONS.

   (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)

REDEVELOPMENT NEIGHBORHOODS

§ 35.20 PURPOSE.

   The purpose of subchapter is to set standards for property to qualify as a redevelopment neighborhood, pursuant to SDCL § 10-6-142 and SDCL §§ 11-8-1 et seq.

(Ord. 658, passed 7-6-2020)

§ 35.21 CLASSIFICATION.

   Any new residential structure, or any addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to SDCL § 10-6-141 and SDCL §§ 11-8-1, et seq., which new structures, additions, or renovations have an increased true and full value of a minimum of $30,000 or more, added to real property are specifically classified for the purpose of taxation. All real property qualifying under this subchapter not completed before August 1, 2020, as determined by the Director of Equalization, shall be classified in the manner prescribed in this subchapter.

(Ord. 658, passed 7-6-2020)