Property Tax

Property taxes are the primary source of funding for schools, counties, municipalities and other units of local government. The Property Tax Division plays a critical role in ensuring that property assessments are fair, equitable and in compliance with state law.

Quick Navigation

How Property Taxes Are Calculated

Property Tax Transparency Portal

Property Owner Appeal Process Guide

Opting Out of Tax Limitations

Tax Increment Financing (TIF) Information

County Officials

Property Tax Publications & Resources

Property Tax Online Forms

Agriculture Land

Public Utilities, Railroad, and Airline Tax

Property Tax Laws and Regulations

How Property Taxes are Calculated

1. Establishing the Value of the Property
   The first step is to establish the full and true value of all property within the boundaries of each unit of government. State statutes require property to be assessed at its market (or full and true) value. Market value is the amount the property would probably sell for if sold on the open market.
    
2. Determine the Taxable Value of the Property
   All property is to be assessed at full and true value. Then the property is equalized to 85% for property tax purposes. If the county is at 100% of full and true value, then the equalization factor (the number to get to 85% of taxable value) would be .85. For example: A home with a full and true value of $230,000 has a taxable value ($230,000 multiplied by .85) of $195,500.
   
   
3. Determine the Tax Levy for All Taxing Jurisdictions Which can Tax Properties
   The third step is to determine the amount of taxes needed to meet the costs of operating a unit of government. The higher the cost of operating the city or school district, the larger the revenues required from property taxes. Revenues from property taxes, combined with other monies such as federal grants, must equal the size of the budget of the unit of government. The amount of property taxes a taxing entity can ask for is limited based on the Property Tax Reduction Act. The tax rate for all property in a local unit of government is arrived at by dividing the value of all the property into the amount of the budget that is unfunded from other sources. This calculation results in a tax rate expressed in dollars of property value, or “dollars per thousand”. For example: if the taxable value within a city is $10,000,000 and the city has a tax levy request of $100,000, the tax levy is $10 per thousand.
   
   
4. Taxes are Computed for Individual Properties
   The final step is to apply the tax rate calculated in step three to individual properties. For example, using a tax levy of $10 per thousand from the example above, the tax on a home with a taxable value of $200,000 would be calculated at $10 X 200 or a tax of $2,000.

Property Tax Transparency Portal

The South Dakota Property Tax Portal is the one stop shop for property tax information, resources and laws. This system features the Property Tax Explainer Tool that provides a high level breakdown of some of the levies assessed within a specific jurisdiction, numerous DOR property tax facts, publications, forms, and multiple years of property tax data.

While the state does not collect or spend any property tax money, property taxes are the primary source of funding for school systems, counties, municipalities, and other units of local government. Not only is the portal a great resource for finding property tax information, it also makes available data open and transparent for everyone.

To visit the site click here. 

Property Owner Appeal Process Guide

As the owner of real property in South Dakota, you have the right to ensure your property is being assessed at no more than market value, as well as assessed equitably in relationship to other properties. Understand the process of appealing your assessed value with the Property Owner Appeal Process Guide (PDF).

Opting Out of Tax Limitations

Taxing Districts (other than School Districts)

“Opting out” means the taxing entity needs more monies from property taxes than they are allowed by the limitation. The limitation allows a taxing entity to increase their tax call from the preceding year by the consumer price index and growth. The CPI for taxes payable in 2020 has been set at 2.4.

LEARN MORE

Tax Increment Financing (TIF) Information

Tax Increment Financing is a means of financing public improvements in a defined geographic area, known as a tax increment financing district, or TIF district. In South Dakota, a TIF district can be created by either a municipality or county. TIF has become an increasingly popular tool for communities looking to upgrade existing infrastructure or as a means of incentivizing new investments in infrastructure for economic development. As of July 1, 2018, South Dakota state law authorizes four classifications for TIF districts: Local, Industrial, Economic Development, and Affordable Housing. TIF district classification is a function of the state-aid to education formula and determines how a given TIF district impacts school funding in South Dakota.

The Department has put together some guidelines for the creation, classification and annual certification of Tax Increment Financing and Tax Increment Districts. The Tax Increment Financing Annual Report (PDF) details project descriptions, valuation information, and timelines for each TIF district. For more information, please reference the following guidelines.

• TIF Guidelines (PDF)
• Tax Increment Financing (TIF) Tax Fact (PDF)
• Tax Increment Financing District Establishment Submission Form
• SDCL Chapter 11-9

County Officials

Get to know the roles of the people you talk to when you have property tax questions.

Director of Equalization

The county Director of Equalization has the responsibility of ensuring all property in the county is accounted for on the tax list. They are also responsible to ensure these properties are all assessed in an equal and uniform manner.

County Contacts

County Auditor

The Auditor figures the tax levies for all allowable taxing entities within the County and ensures the amount of taxes received complies with state law. In addition, the County Auditor serves as the clerk of the County Commission and records and preserves the records of the Commission proceedings.

County Contacts

County Treasurer

The treasurer is responsible for collecting all property taxes for the county, cities, school districts and any other political district authorized to levy real estate taxes.

County Contacts

Property Tax Publications & Resources

Learn the steps to take to appeal the valuation of your property when you download the Appeal Process Guide for the Property Owner (PDF) and other resources:

• 2024 Tax Increment Financing (TIF) Annual Report (PDF)
• Property Tax Statistical Report 2023 (PDF)
• Tax Increment Financing (TIF) Tax Fact (PDF)
• Tax Limitation and Opt-Out Information for School Districts (PDF)
• Renewable Energy Facility Tax Fact (PDF)
• Property Tax 101 Tax Fact (PDF)
• Capital Outlay Tax Fact
• Manufactured and Modular Homes Tax Fact (PDF)
• Property Tax Discretionary Formula (PDF)
• Renewable Resource Valuation Exemption Program (PDF)