<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 - Discretionary formula for reduced taxation--New structures and additions--Partially constructed structures.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s8ef432cd83ed429180f5e32857d1d82fNormal { 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.s8ef432cd83ed429180f5e32857d1d82fSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8ef432cd83ed429180f5e32857d1d82fCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s8ef432cd83ed429180f5e32857d1d82fStatute { 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.s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s8ef432cd83ed429180f5e32857d1d82f000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8ef432cd83ed429180f5e32857d1d82fNoIndent { text-indent: 0.00in; 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.s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8ef432cd83ed429180f5e32857d1d82fSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 10-6-137 - Discretionary formula for reduced taxation--New structures and additions--Partially constructed structures."><meta property="og:description" content="SDLRC Codified Law 10-6-137 - Discretionary formula for reduced taxation--New structures and additions--Partially constructed structures."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/10-6-137"><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="s8ef432cd83ed429180f5e32857d1d82fNormal"><a href="https://sdlegislature.gov/Statutes?Statute=10-6-137" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fSENU">10-6-137</span></a><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fSENU">. </span><span class="s8ef432cd83ed429180f5e32857d1d82fCL">Discretionary formula for reduced taxation--New structures and additions--Partially constructed structures.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatute"><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">Following the construction of any structure classified pursuant to this section, the valuation of the structure for taxation purposes must occur in the usual manner. The board of county commissioners of the county in which the structure is located may adopt a discretionary formula for assessed value to be used for tax purposes. Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=10-6-137.1" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">10-6-137.1</span></a><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">, the formula may include, for any or all of the five tax years following construction, all, any portion, or none of the assessed value for tax purposes. Any formula adopted pursuant to this section may not be used for any property within a tax increment finance district.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatute"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">The board may, if requested by the owner of the structure, fully assess the structure without application of the formula. In waiving the formula for the structure of one owner, the board is not prohibited from applying the formula for subsequent new structures. The assessed value during any of the five years may not be less than the assessed value of the property in the year preceding the first year of the tax years following construction.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatute"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">Any structure that is partially constructed on the assessment date may be valued for tax purposes, pursuant to this section, and the value may not be less than the assessed value of the property in the year preceding the beginning of construction. The period that the property is valued for tax purposes under this section may include the years when the property is partially constructed.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatute"><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">Following the five-year period under this section, the property must be assessed at the same percentage as all other property for tax purposes, except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=10-6-137.1" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">10-6-137.1</span></a><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatute"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">Any of the following types of real property may be specifically classified for the purpose of taxation pursuant to this section:</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(1)    Any new industrial structure, or any addition, renovation, or reconstruction to an existing structure, if the new structure, addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(2)    Any new industrial structure, including a power generation facility, or an addition to an existing facility, if the new facility or addition has a full and true value of thirty thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(3)    Any new nonresidential agricultural structure, or any addition to an existing structure, if the new structure or addition has a full and true value of ten thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(4)    Any new commercial structure, or any addition, renovation, or reconstruction to an existing structure, except a commercial residential structure as described in subdivision (5), if the new structure or addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(5)    Any new commercial residential structure, or addition to an existing structure, containing four or more units, if the new structure or addition has a full and true value of thirty thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(6)    Any new affordable housing structure containing four or more units, with a monthly rental rate of the units 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, if the structure has a full and true value of thirty thousand dollars or more;</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(7)    Any new residential structure, or addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=10-6-141" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">10-6-141</span></a><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">, if the new structure, addition, or renovation has a full and true value of five thousand dollars or more, provided the structure is located in an area defined and designated as a redevelopment neighborhood based on conditions set forth in § </span><a href="https://sdlegislature.gov/Statutes?Statute=11-7-2" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">11-7-2</span></a><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes?Statute=11-7-3" rel="noopener"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">11-7-3</span></a><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">; or</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fStatuteNumber1"><span class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont">(8)    Any commercial, industrial, or nonresidential agricultural property that increases more than ten thousand dollars in full and true value, as a result of reconstruction or renovation of the structure.</span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fNormal"><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82f000000"> </span></p><p dir="ltr" class="s8ef432cd83ed429180f5e32857d1d82fNoIndent"><span xml:space="preserve" class="s8ef432cd83ed429180f5e32857d1d82fDefaultParagraphFont-000001">Source: </span><span class="s8ef432cd83ed429180f5e32857d1d82fSCL">SL 1970, ch 81, § 2; SL 1974, ch 91, § 3; SL 1977, ch 82, § 1; SL 1986, ch 84; SL 1987, ch 85; SL 1991, ch 83, § 1; SL 1993, ch 85, § 3; SL 1994, ch 78, § 1; SL 1994, ch 79, § 3; SL 2000, ch 42, § 12; SL 2019, ch 61, § 2; SL 2020, ch 39, § 1; SDCL § 10-6-35.2; SL 2021, ch 44, § 44; SL 2022, ch 29, § 1; SL 2026, ch 58, § 1.</span></p></div></body></html><br /><hr><br /><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 - Discretionary formula for reduced taxation--New structures and additions--Partially constructed 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; 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.s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s893a31a619fc4abdbdad2855ccd75eb6StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s893a31a619fc4abdbdad2855ccd75eb6000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s893a31a619fc4abdbdad2855ccd75eb6NoIndent { text-indent: 0.00in; 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.s893a31a619fc4abdbdad2855ccd75eb6DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; 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>