HB 1182 revise certain provisions related to property tax assessments ...
State of South Dakota
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EIGHTY-THIRD
SESSION
LEGISLATIVE ASSEMBLY,
2008
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615P0113
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SENATE TAXATION ENGROSSED
NO.
HB 1182
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1/30/2008
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Introduced by:
Representatives Noem, Burg, Faehn, Moore, Novstrup (Al), Olson (Russell),
Olson (Ryan), Peters, Turbiville, and Weems and Senators Hansen (Tom),
Abdallah, Bartling, McNenny, and Turbak Berry
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FOR AN ACT ENTITLED, An Act to
revise certain provisions related to property tax
assessments for elderly and disabled persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1.
That
§
10-6A-1
be amended to read as follows:
10-6A-1.
Terms as used in this chapter
, unless the context otherwise clearly requires,
mean:
(1)
"Base year," for
those heads of households
any property owner
who reached
sixty-five years of age or became disabled in or prior to 1981, the base year is 1977.
For
those heads of households who reach
any property owner who reaches
sixty-five
years of age or
become disabled subsequent to
becomes disabled after
1981, the base
year is the year in which
they reach
the property owner reaches
the age of sixty-five
or the year in which the property owner becomes disabled
. In the case of a surviving
spouse, the base year is the year
which
that
would have been the base year of the
deceased spouse;
(2)
"Base year assessment," the actual assessed value of a single-family dwelling in the
base year or, at the applicant's election, a year subsequent to the base year
. The
applicant need not have been the owner of the dwelling during the base year
;
(3)
"Department," the South Dakota Department of Revenue and Regulation;
(4)
"Disabled,"
persons receiving or having
any person who receives or is
qualified to
receive monetary payments, pursuant to Title II, X, XIV, or XVI of the Social
Security Act, as amended
, and in effect on January 1, 1981
to January 1, 2008
, for all
or part of the year for which a property tax assessment freeze application is made;
(5)
"Head of household," a married person, a single person, a widow or widower, or a
divorced person;
(6)
"Household," the association of persons who live in the same dwelling, sharing its
furnishings, facilities, and accommodations, but not including bona fide lessees,
tenants, or roomers and boarders on contract;
(7)
(6)
"Household income," all income received during the preceding calendar year by all
persons of a household while members of the household;
(8)
(7)
"Income," the sum of adjusted gross income as defined in the United States Internal
Revenue Code of 1954, as amended
, and in effect on December 31, 1989
to
January 1, 2008
, and
all nontaxable income, including but not limited to
IRA
disbursements,
the amount of capital gains excluded from adjusted gross income,
alimony, support money, nontaxable strike benefits, cash public assistance and relief,
the gross amount of any pension or annuity, including Railroad Retirement Act
benefits and veterans disability pensions, all payments received under the federal
social security and state unemployment insurance laws, nontaxable interest
received
from the federal government or any of its instrumentalities
,
life insurance proceeds
that exceed twenty thousand dollars, any gift or inheritance that exceeds five hundred
dollars, proceeds from a court action, any sale of a personal item that exceeds five
hundred dollars, foster care income, and
workers' compensation
, and the gross
amount of "loss of time" insurance, but not including gifts from nongovernmental
sources, food stamps, or surplus foods or other relief in kind provided by a public
agency
;
(8) "Property owner," the owner of a dwelling as recorded by the register of deeds in the
county where the dwelling is located. A joint tenant, an owner of a life estate, a
beneficiary of a trust, and a vendee of a contract for deed as filed with the register of
deeds in the county where the dwelling is located is considered to be an owner;
(9)
"Real property tax assessment freeze," for tax purposes, the assessment of a
single-family dwelling as recorded in the base year on the county assessment roll and
held constant at that value;
(10)
"Secretary," the secretary of the South Dakota Department of Revenue and
Regulation;
(11)
"Single-family dwelling," a house, condominium apartment, or manufactured home
as defined in § 32-3-1
which
that
is assessed and taxed as a separate unit including
the platted lot upon which the structure is situated or one acre, whichever is less, and
the garage, whether attached or unattached;
(12)
"Surviving spouse," the spouse of a deceased
head of household
property owner
who
has not remarried.
Section 2.
That
§
10-6A-2
be amended to read as follows:
10-6A-2.
Any person making an application under the provisions of this chapter is entitled
to a real property tax assessment freeze upon the person's single-family dwelling if the following
conditions are met
. The person
:
(1)
Has a household income of less than twenty thousand dollars if the household is a
single-member household
; or
(2)
Has
or the person has
a household income of less than twenty-five thousand dollars
if the household is a multiple-member household; and
(3)
(2)
Has
owned a single-family dwelling, in fee or by contract to purchase, for at least one
year and has
been a property owner and
a resident of South Dakota for at least one
year; and
(4)
(3)
Has resided for at least two hundred days of the previous calendar year in the
single-family dwelling; and
(5)
(4)
Has established a base year.
The surviving spouse of a person who has previously qualified is entitled to the real property
tax assessment freeze if the surviving spouse meets the other conditions of this chapter.
Beginning on January 1, 2005, the household income listed in
subdivisions (1) and (2)
subdivision (1)
of this section shall increase by the index factor. The index factor is the annual
percentage change in the consumer price index for urban wage earners and clerical workers as
computed by the Bureau of Labor Statistics of the United States Department of Labor for the
year before the year immediately preceding the year of adjustment or the annual percentage
change in federal social security payments for the preceding year, whichever is greater.
Section 3.
That
§
10-6A-4
be amended to read as follows:
10-6A-4.
The application for the real property tax assessment freeze provided under this
chapter shall be annually submitted on or before April first on forms prescribed by the secretary
of revenue and regulation. The form shall be made available to the county treasurer who shall,
upon request of an applicant, assist the applicant in completing the form.
The property owner
shall sign the certificate under penalty of perjury.
A person failing to comply with the April first
deadline for the previous year, but otherwise qualifying for the real property tax assessment
freeze provided under this chapter, may petition the board of county commissioners to
recalculate the taxes based on the valuation the person would have received under this program
and abate the difference in taxes.
Section 4.
That chapter
10-6A
be amended by adding thereto a NEW SECTION to read as
follows:
Any person who receives a reduction in value due to false application for the real property
tax assessment freeze by misrepresenting the facts as to the person's ownership or income shall
be assessed the amount of tax reduction received due to the assessment freeze. The assessment
is a perpetual lien on the property pursuant to
§
10-21-33. The person is barred from receiving
the assessment freeze reduction on any property in the state for the following three years.