South Dakota Property Taxes
Overview of South Dakota Property Taxes
As a homeowner in South Dakota, you are required to pay property taxes every year. Like many states, South Dakota property taxes are levied by local taxing districts. The taxing authorities include cities, counties, municipalities, school districts, and other special districts like fire protection. The state and its local governments collect $6.9 billion in total revenue every year. Of that, 1.4 billion or 20.3% of the total revenue collected comes from property taxes. On average, homeowners pay 1.25% of their home value every year in property taxes or $12.50 for every $1,000 in home value.
South Dakota property taxes are based on your home's assessed value as determined by the County Director of Equalization. State statutes require that properties be assessed at their "full and true value," which is the amount the property would sell for in the open market. The taxing authorities then apply an 85% "equalization ratio" to get the property's taxable value. This is the value upon which your South Dakota property taxes are based. For instance, if your home has a full and true value of $250,000, the taxable value will add up to ($250,000 multiplied by 0.85) $212,500.
The next step in deciding your South Dakota property tax bill is determining the tax rate. South Dakota property tax rates are decided by the taxing authorities depending on the cost of running a unit of government. The higher the costs of operating a taxing district, the higher the property tax rates will be. The tax rate is expressed in "dollars per thousand" and is calculated by dividing all taxable property values within a taxing jurisdiction by the budget required. If the taxable value in a jurisdiction is $10 million and the unit of government has a tax levy request of $100,000, the tax rate will be $10. Subsequently, South Dakota property taxes vary from county to county.
If you are planning to buy a home in South Dakota and want to understand how much your property tax bill could potentially cost, check out our South Dakota Property Tax Tool to see what your bill would be.
South Dakota Property Tax Due Dates
If you have reasons to believe your assessment is higher than what you could get from selling your property, the state allows you to appeal property taxes. Appeals must be mailed to the local board of equalization. If you are not satisfied with the local board's decision, further appeal avenues include the county board, the Office of Hearing Examiners, and the Circuit Court. However, you can only appeal the assessment, not the tax rates. You must also pay South Dakota property taxes pending the outcome of your appeal.
But when are taxes due in South Dakota? Property taxes in South Dakota are due and payable on January 1st. However, the state allows homeowners to pay property taxes in two installments. The first installment is accepted until April 30th. The second half of South Dakota property taxes can be paid by October 31st without penalty. If the due dates fall on a weekend holiday, it is your responsibility as the homeowner to submit the payments by the last business day, not later than 4:45 p.m.
There is an annual 10% penalty for taxes that remain unpaid after South Dakota property tax due dates. Additionally, taxes that are not postmarked by April 30th and October 31st are also considered late. You could mail your South Dakota property taxes on time, but if the post office doesn't postmark them by the due dates, they are still considered late payments. You can pay your property taxes via mail, online, via dropbox, or in person.
South Dakota Property Tax Exemptions
Besides the option to appeal property taxes if wrongly assessed, the state of South Dakota also provides several exemptions to qualifying homeowners. They include senior and homestead exemptions. The exemptions can potentially reduce your South Dakota property tax bill. However, even eligible homeowners are still subject to South Dakota property tax due dates.
South Dakota Homestead Exemption
South Dakota's homestead exemption delays the payment of South Dakota property taxes for eligible homeowners until the property is sold. The taxes remain as a lien to the property and must be cleared together with interests that accrue at a rate of 4% per annum before the property ownership can be transferred. To be eligible, you must meet specific income limit requirements, be at least 70 years old, and be a South Dakota resident for at least five years. Applications are available at South Dakota Property Tax Division's website.
South Dakota Senior Citizens Exemption
South Dakota's senior exemption is also known as the Assessment Freeze for the Elderly and Disabled. It reduces your property's assessed value, which is the basis of South Dakota's property taxes. To qualify, you must be at least 65 years of age, be the legal owner of the property, and have resided in the property for at least 200 days of the previous calendar year. You must also meet certain income and property value limit requirements.
Other South Dakota property tax exemptions include the disabled veteran's exemption, which exempts up to $150,000 of the disabled veteran's property value from taxes. The property has to be their principal residence. Additionally, the disability has to be complete and 100% related to military service. The unmarried spouse of an eligible veteran also qualifies for this exemption. More information regarding this and more exemptions can be found on the Department of Revenue's website.
How to Appeal Your Property Taxes in South Dakota
As a South Dakota homeowner, you can appeal property taxes if you have reasons to believe your property was assessed at more than its market value. The first step starts with the local board of equalization. You are required to write to the board's clerk explaining your reasons for appealing. The local board then sets a date for the hearing. If you disagree with the local board's decision, you can further appeal to the county board. Should your property be located in a jurisdiction where the local and county boards of equalization are consolidated, your next step of appeal is with the Consolidated Board of Equalization. Your Assessment Notice should have information indicating whether this applies to your property. You can further appeal the local and county boards' decisions to either the Office of Hearing Examiners (OHE) or the Circuit Court. You can bypass the OHE and appeal directly to the Circuit Court, but you cannot appeal to both simultaneously.
The process of filing an assessment appeal varies across South Dakota though it generally follows the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
How to Appeal Your Property Taxes in Minnehaha County
To help you understand how to appeal your property taxes in South Dakota, here is a breakdown of the process in Minnehaha County, South Dakota's most populous county.
Obtain your assessment
If you own property in Minnehaha County, you can obtain your assessment details from your Notice of Assessment. Alternatively, you can contact the County Assessor's office.
Determine if you are over-assessed
To successfully appeal property taxes, you need evidence showing the assessor overvalued your property. TaxProper's search tool can help you look for similar units within Minnehaha County, determine their true market value, and compare them to your property's assessed value.
Complete forms needed to appeal
The forms you need for your property tax appeal can be obtained from the State of South Dakota's Property Tax Division website.
File property tax appeal
Property tax appeals in Minnehaha County can be filed with the County Board of Equalization. You must write a letter to the County Board informing them of your intention to appeal your property's assessment.
Prepare for hearing
Preparation for a property tax appeal hearing includes providing concrete evidence challenging the assessor's valuation of your property. Evidence can consist of comparable sales of similar property and testimony from a licensed property appraiser.
You are required to attend the County Board hearing to provide the evidence you have gathered supporting your claim. You can also be cross-examined by the county assessor and answer questions from the board members.
Appeal the decision
Decisions by the County Board of Equalization can be appealed to the Office of Hearing Examiners or the Circuit Court.
Property Tax Information for South Dakota Counties
The table below provides county-level information about how property taxes work in each South Dakota county.
Want to learn more? Click the county links to learn more about a specific South Dakota county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|Bon Homme County||$96,961||$1,276||$13.20|
|Charles Mix County||$114,943||$1,295||$11.30|
|Fall River County||$133,988||$1,653||$12.30|