REDUCED TAXATION FOR NEW MIDTOWN MIXED-USE STRUCTURES, ADDITIONS THERETO

§ 37.085 AUTHORITY.

   This subchapter is adopted pursuant to the authority granted to the municipalities pursuant to SDCL 10-6-137.5 and 10-6-138.

(1992 Code, § 39-134) (Ord. 60-07, passed 5-7-2007; Ord. 64-20, passed 8-4-2020; Ord. 40-24, passed 5-14-2024)

§ 37.086 APPLICABILITY AND APPLICATION FOR REDUCED TAXATION.

   (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.

   (e)   Any person aggrieved by a decision of the planning director under this subchapter may file an appeal according to the procedure set forth in §§ 30.040 through 30.046.

(Ord. 40-24, passed 5-14-24)

§ 37.087 CALCULATION OF TAX.

   (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)

§ 37.088 DEFINITIONS.

   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)

§ 37.089 [RESERVED].

§ 37.090 DISCRETIONARY FORMULA REPORT.

   In July of each year, planning and development services department shall submit a report to the city council of all eligible completed new construction projects which qualified for the discretionary formula beginning in December of 2008. The report will include the description of each qualified property, the base full and true taxable value, the new adjusted full value of new construction and improvements and the amount of discretionary loss of taxable value as defined in city ordinance of 100%, 80%, 60%, 40% or 20% for each year of the eligible tax abatement.

(1992 Code, § 39-139) (Ord. 32-08, passed 3-3-2008; Ord. 64-20, passed 8-4-2020)