(A) Discretionary taxation of real property. The purpose of this section is to provide reduced taxation of the following identified properties pursuant to SDCL 10-6-137.
(B) Industrial structures. Any new industrial structure, or any addition, renovation, or reconstruction to an existing structure, including a power generation facility, which new structure or addition has a true and full value of $30,000 or more, added to real property shall qualify to be assessed pursuant to the discretionary formula described in division (H) below, pursuant to SDCL 10-6-137(2).
(C) Commercial structures. Any new commercial structure, or any addition, renovation, or reconstruction to an existing structure, which new structure or addition has a true and full value of $30,000 or more shall qualify to be assessed pursuant to the discretionary formula described in division (H) below, pursuant to SDCL 10-6-137(4).
(D) Commercial residential structures. Any new commercial residential structure, or addition to an existing structure, containing four or more units, if the new structure or addition has a true and full value of $30,000 or more, shall qualify to be assessed pursuant to the discretionary formula described in division (H) below, pursuant to SDCL 10-6-137(5).
(E) Residential structures.
(1) Any new residential structure, or any addition to or renovation of an existing structure, located within a redevelopment neighborhood, which new structure, addition, or renovation has a true and full value of $20,000 or more, added to real property shall qualify to be assessed pursuant to the discretionary formula described in division (H) below, pursuant to SDCL 10-6-137(7).
(2) In order to improve the quality of housing, all real property located within the corporate limits of the City of Winner, South Dakota shall qualify as property located in a redevelopment neighborhood. The redevelopment neighborhood is being established because the area includes buildings or improvements which, by reason of age, deterioration, obsolescence, and dilapidation injuriously affect the area to the detriment of public health, safety, morals or welfare; and, because the redevelopment of housing is being prevented by the predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; the deterioration of site improvements; and obsolete platting, pursuant to SDCL 10-6-141.
(F) Special classifications. All commercial, industrial, and nonresidential agricultural property which increases more than $10,000 in true and full value as a result of reconstruction or renovation of structure shall qualify to be assessed pursuant to the discretionary formula described in division (H) below. All real property qualifying under this section completed on December 5, 2022 and thereafter, as determined by the Director of Equalization, is classified in the manner prescribed in this section, pursuant to SDCL 10-6-137(8).
(G) Valuation.
(1) Any real property located within the corporate limits of the City of Winner, South Dakota, classified pursuant to the following shall, following construction, initially be valued for taxation purposed in the usual manner, and that value shall be referred to as the "pre-adjustment value." The assessed value to be used for tax purposes shall follow the discretionary formula described in division (H) below. Following the five or seven year period as provided in division (H), the property shall be assessed at the same percentage as all other property for tax purposes.
(2) Reconstruction and renovation as used in this chapter means only improvements that increase the true and full value of the structure and shall not include normal maintenance and repair.
(3) The assessed value during any of the five or seven years provided in division (H) may not be less than the assessed value of the property in the year proceeding the first year of the tax years following construction.
(4) 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.
(5) Property owners of any of the above described property may request the City Council not apply the discretionary formula, in which case the full assessment shall be made without application of the formula. In waiving the formula for the structure of one owner, the City Council is not prohibited from applying the formula for subsequent new structures by that owner.
(H) Discretionary formula.
(1) Any real property improvements qualifying for the discretionary formula pursuant to divisions (B), (C) and (F) shall be assessed as follows:
First year | 20% of pre-adjustment value |
Second year | 40% of pre-adjustment value |
Third year | 60% of pre-adjustment value |
Fourth year | 80% of pre-adjustment value |
Fifth year | 100% of pre-adjustment value |
(2) Any real property improvements qualifying for the discretionary formula pursuant to divisions (D) and (E) shall be assessed as follows:
First year | 15% of pre-adjustment value |
Second year | 25% of pre-adjustment value |
Third year | 35% of pre-adjustment value |
Fourth year | 50% of pre-adjustment value |
Fifth year | 60% of pre-adjustment value |
Sixth year | 75% of pre-adjustment value |
Seventh year | 100% of pre-adjustment value |
(Ord. 1045, passed 12-5-2022)