State of South Dakota
LEGISLATIVE ASSEMBLY, 2019
This bill has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor.
||HOUSE ENGROSSED NO. HB 1084 - 2/25/2019 |
Introduced by: Representatives Beal, Goodwin, Gosch, Hansen, Karr, Marty, and Qualm and Senators Bolin, Cammack, Langer, and Otten (Ernie)
FOR AN ACT ENTITLED, An Act to provide for specific classification of affordable housing structures for purposes of taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 10-6 be amended by adding a NEW SECTION to read:
Any new affordable housing structure is specifically classified for the purposes of taxation. For purposes of this section a new affordable housing structure shall contain four or more units and the monthly rental rate of the units will be at or below the annually calculated rent for the state's sixty percent area median income being used by the South Dakota Housing Development Authority, for a minimum of ten years following the date of first occupancy.
Section 2. That § 10-6-35.2 be amended to read:
10-6-35.2. Any structure classified pursuant to § 10-6-35.1, 10-6-35.21, 10-6-35.22, 10-6-35.24,
10-6-35.25, or section 1 of this Act,
shall, following construction, be valued for taxation purposes in the usual manner. However, the board of county commissioners of the county where the structure is located, may adopt any formula for assessed value to be used for
tax purposes. The formula may include for any or all of the five tax years following construction all, any portion or none of the assessed valuation for tax purposes. The board of county commissioners of the county where the structure is located may, if requested by the owner of the structure, not apply the discretionary formula and the full assessment shall be made without application of the formula. In waiving the formula for the structure of one owner, the board of county commissioners is not prohibited from applying the formula for subsequent new structures. The assessed valuation during any of the five years may not be less than the assessed valuation of the property in the year preceding the first year of the tax years following construction.
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. During any period
of time that the property is valued for tax purposes pursuant to under this section, the period of time may include the years when the property is partially constructed. Thereafter Following the five-year period under this section,
the property shall be assessed at the same percentage as is all other property for tax purposes.