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Any project making a claim for reduced taxation to the Planning and Development Services Department must meet one of the following criteria:
(a) An approved Low Income Housing Tax Credit Project approved by the South Dakota Housing Development Authority (SDHDA).
(b) An approved housing project with HOME Investment Partnerships Program (HOME) funding included in the project.
(c) Ten percent of the units in the project assigned Project-based vouchers (PBVs) in coordination with Sioux Falls Public Housing Agency.
(d) Twenty-five percent of total units included in the project must capped at or below "fair market rent" as published annually the U.S. Department of Housing and Urban Development.
(e) Other "Available Development Programs" as outlined by SDHDA.
(f) Projects that receive City of Sioux Falls Housing Program funding and must have a minimum of 20% of units considered affordable (65% Rent Limit).
(Ord. 41-24, passed 5-14-2024)
For the purposes of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
COMMERCIAL RESIDENTIAL. Any residential structure containing four or more dwelling units.
PERSON. Any individual, firm, co-partnership, joint venture, association, cooperative, nonprofit development corporation, limited liability company, limited liability partnership, corporation, estate, trust, business trust, receiver, or any group or combination acting as a unit.
QUALIFYING PROJECTS. Any commercial residential structures that meet the applicability referenced in § 37.083.
(Ord. 41-24, passed 5-14-2024)
REDUCED TAXATION FOR NEW MIDTOWN MIXED-USE STRUCTURES, ADDITIONS THERETO
(a) This subchapter shall apply only to those new commercial residential structures or additions that meet the requirements of the Midtown Mixed Use–Low Density (MMU1), Midtown Mixed Use–Medium Density (MMU2), or Midtown Mixed Use–High Density (MMU3) zoning districts.
(b) Any person desiring to claim reduced taxation shall make an application to the Planning and Development Services Department on or before the date a building permit is issued for the construction of a structure or facility. The application shall be submitted on a form prescribed by the city and include a copy of the site and building plans.
(c) Upon approval of the application, the planning and development services department shall notify the applicant stating whether the facility is eligible to receive reduced taxation.
(d) In January, the year following completion of the project, planning and development services department 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.
(Ord. 40-24, passed 5-14-24)
(a) All new qualifying Midtown Mixed-Use structures or additions, which have a full and true value of $500,000 or more, added to real property, shall be taxed pursuant to the following formula during the six tax years subsequent to the completion of their construction:
(1) The full and true value of the structure shall be determined in the usual manner by the director of equalization;
(2) For the first and second tax years following construction, 25% of the taxable value shall be used for taxation purposes;
(3) For the third and fourth tax year following construction, 50% of the taxable value shall be used for taxation purposes;
(4) For the fifth and sixth tax year following construction, 75% of the taxable value shall be used for taxation purposes; and
(b) The taxable value of the structures or additions, during any of the seven 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 seventh and all subsequent tax years following construction, the structures or additions, shall be taxed in the same manner as all other similar commercial residential property within the city.
(d) Any 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.
(e) The new construction tax incentive shall be discontinued if the project use changes to a nonqualifying use during the seven-year period so that it would be ineligible under the new use.
(Ord. 40-24, passed 5-14-24)
For the purposes of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
COMMERCIAL RESIDENTIAL. Any residential structure containing four or more dwelling units.
MIDTOWN MIXED-USE STRUCTURES. Any commercial residential structures that meet the applicability referenced in § 37.086.
PERSON. Any individual, firm, co-partnership, joint venture, association, cooperative, nonprofit development corporation, limited liability company, limited liability partnership, corporation, estate, trust, business trust, receiver, or any group or combination acting as a unit.
(Ord. 40-24, passed 5-14-24)
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