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REDUCED TAXATION FOR NEW INDUSTRIAL STRUCTURES, ADDITIONS THERETO WITHIN THE CITY
(a) The term
INDUSTRIAL STRUCTURES OR ADDITIONS THERETO as used in this subchapter shall include, but not be limited to, the following uses:
(1) Apparel and textile manufacturing;
(2) Wood, furniture and manufacturing;
(3) Lumber wholesaling;
(4) Printing and publishing plants;
(5) Warehousing and distribution (no retail uses);
(6) Electronics assembly and manufacturing;
(7) Scientific research and development, including incubation of start-up technology businesses;
(8) Other light pollution-free manufacturing facilities;
(9) Food, agricultural processing, stockyards, rendering and milk processing plants;
(10) Paper, pulp and wood processing and manufacturing;
(11) Chemical, petroleum and rubber manufacturing and distribution;
(12) Stone, glass, clay, brick and cement manufacturing;
(13) Primary metal and smelting;
(14) Metal fabricating and manufacturing;
(15) Distillation and purification plants;
(16) Manufacture and storage of electrical transformers;
(17) Data processing, hosting and related services including payroll services and financial transactions processing; and
(18) Insurance underwriting, premium processing and policyholder service facilities operated by domestic or foreign insurers or by other entities (other than licensed agents) who provide these services to insurers.
(b) This subchapter shall apply to those new industrial structures or additions thereto that are commenced after August 21, 1987.
(1992 Code, § 39-122) (Ord. 59-87, passed 7-27-1987; Ord. 85-05, passed 8-15-2005)
(a) All new qualifying structures, or additions or renovation or reconstruction of existing qualifying structures, which have a full and true value of $300,000 or more, added to real property shall be taxed pursuant to the following formula during the five tax years subsequent to the completion of their construction:
(1) The full and true value of the structures, additions, renovation or reconstruction 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 tax year following construction, 20% of the taxable value shall be used for taxation purposes;
(4) For the third tax year following construction, 40% of the taxable value shall be used for taxation purposes;
(5) For the fourth tax year following construction, 60% of the taxable value shall be used for taxation purposes; and
(6) For the fifth tax year following construction, 80% of the taxable value shall be used for taxation purposes.
(b) The taxable value of the 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) For the sixth and all subsequent tax years following construction, the structures or additions shall be taxed in the same manner as all other similar industrial property within the city.
(d) Any structures, additions, renovation or reconstruction, the construction of which is only partially completed on any assessment date, shall be assessed for taxation purposes in the usual manner.
(e) The new construction tax incentive shall be discontinued if the business use changes to a nonqualifying use during the five-year period so that it would be ineligible under the new use.
(1992 Code, § 39-123) (Ord. 59-87, passed 7-27-1987; Ord. 85-05, passed 8-15-2005; Ord. 135-06, passed 10-16-2006)
(a) Any person desiring to claim reduced taxation on new construction shall make application to the planning and development services department on or before October 1 in the year in which the project is completed and shall first appear on the tax rolls as a completed or modified structure. The application shall be submitted on a form prescribed by the city. Upon planning and development services' approval of the application, the staff shall notify the applicant within 30 days stating whether the facility is eligible to receive reduced taxation.
(b) In January, the year following completion of the project, planning and development services will certify those improvements which qualify for reduced taxation to the director of equalization in the county in which the real property is taxed. New construction tax incentives are not assignable or transferable, except as collateral or security pursuant to SDCL ch. 57A-9, Secured Transactions.
(1992 Code, § 39-127) (Ord. 135-06, passed 10-16-2006; Ord. 32-08, passed 3-3-2008; Ord. 64-20, passed 8-4-2020)
REDUCED TAXATION FOR NEW INDUSTRIAL, COMMERCIAL STRUCTURES, ADDITIONS THERETO WITHIN DOWNTOWN CENTER DESIGNATED URBAN RENEWAL AREA
This subchapter shall apply only to those new industrial or commercial structures or additions thereto, or renovation or reconstruction of existing structures located within the city downtown center designated urban renewal area. It shall apply to new structures or additions thereto on which construction has been commenced after August 1, 1987. It shall also apply to renovations or reconstruction on which construction has commenced after June 30, 1988.
(1992 Code, § 39-129) (Ord. 69-87, passed 8-31-1987; Ord. 26-88, passed 4-18-1988; Ord. 35-88, passed 5-16-1988; Ord. 136-06, passed 10-16-2006)
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