<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 10-6-137.1 - Discretionary formula for reduced taxation of new residential structures.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s893a31a619fc4abdbdad2855ccd75eb6Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s893a31a619fc4abdbdad2855ccd75eb6SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s893a31a619fc4abdbdad2855ccd75eb6CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s893a31a619fc4abdbdad2855ccd75eb6Statute { text-indent: 0.50in; text-align: justify; 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font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s893a31a619fc4abdbdad2855ccd75eb6SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD - Discretionary formula for reduced taxation of new residential structures."><meta property="og:description" content="SDLRC Codified Law - Discretionary formula for reduced taxation of new residential structures."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute="><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Normal"><a href="https://sdlegislature.gov/Statutes?Statute=10-6-137.1" rel="noopener"><span class="s893a31a619fc4abdbdad2855ccd75eb6SENU">10-6-137.1</span></a><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6SENU">. </span><span class="s893a31a619fc4abdbdad2855ccd75eb6CL">Discretionary formula for reduced taxation of new residential structures.</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Statute"><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">For any real property specifically classified under subdivisions </span><a href="https://sdlegislature.gov/Statutes?Statute=10-6-137" rel="noopener"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">10-6-137</span></a><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">(5), (6), and (7), the formula adopted by the board of county commissioners must include:</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6StatuteNumber1"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">(1)    No more than twenty-five percent of the increased assessed value in the first or second year following the completion of construction;</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6StatuteNumber1"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">(2)    No more than fifty percent of the increased assessed value in the third or fourth year following the completion of construction;</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6StatuteNumber1"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">(3)    No more than seventy-five percent of the increased assessed value in the fifth or sixth year following the completion of construction; and</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6StatuteNumber1"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">(4)    One hundred percent of the increased assessed value in the seventh year following the completion of construction and each year thereafter.</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Statute"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">During construction, the assessed value of the property may not exceed the assessed value of the property in the year preceding the beginning of construction.</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Statute"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">The percentages stated in this section are limited to that portion of the assessed value that exceeds the property's assessed value in the year preceding the start of construction.</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Statute"><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">Any real property receiving the benefit of a discretionary formula prior to July 1, 2022, must continue to be assessed and taxed in the manner provided for in any county or municipal resolution adopted pursuant to this chapter and in effect prior to July 1, 2022, and must continue to be subject to the provisions of §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=10-12-44" rel="noopener"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">10-12-44</span></a><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes?Statute=11-9-20" rel="noopener"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">11-9-20</span></a><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">, and </span><a href="https://sdlegislature.gov/Statutes?Statute=13-13-20.4" rel="noopener"><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">13-13-20.4</span></a><span class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont">.</span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6Normal"><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6000000"> </span></p><p dir="ltr" class="s893a31a619fc4abdbdad2855ccd75eb6NoIndent"><span xml:space="preserve" class="s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont-000001">Source: </span><span class="s893a31a619fc4abdbdad2855ccd75eb6SCL">SL 2022, ch 29, § 2.</span></p></div></body></html>