Businesses

Public Utilities, Railroad, & Airline Tax

The Department of Revenue shares property assessment duties with local South Dakota County Directors of Equalization. While some industries pay property taxes, others are responsible for paying a Gross Receipts Tax. Regardless of the method of taxation, all tax dollars are submitted to local governments.

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Annual Report Forms

Additional Resources

Airline Flight Property

Pipeline Companies

Power & Light

Railroads

Telecom Companies

Water Companies

Wind Companies

Annual Report Forms

Companies assessed by the Department of Revenue are required to submit an annual report to the Department. It is essential to acquire the proper reports to ensure accurate filing. If you have further questions about what information should accompany the reports, please call (605) 773-5851.

Additional Resources

Renewable Energy Facility (PDF)

Airline Flight Property

The Department of Revenue is responsible for assessing flight property (aircraft) of airline companies operating within the State of South Dakota. Airline companies subject to the property tax must be engaged in the operation of owned or leased aircraft for hire in interstate or international transportation on regularly scheduled flights. Flight property is assessed by the Department in July and the tax is then certified and sent to counties in August. The counties collect and distribute the taxes to the airports where the airlines make their regularly scheduled landings. SDCL 10-29

Pipeline Companies

Please note, municipal utilities are exempt from property taxes.

Natural Gas Pipeline Companies

The Department of Revenue is responsible for assessing the property of natural gas companies operating in South Dakota. The operating property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-35

Pipeline Companies

The Department of Revenue is responsible for assessing the property of both oil, gas, and carbon dioxide pipeline companies operating as a common carrier in South Dakota. The operating property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-37

Power & Light

Power and Light Companies provide energy to residents and businesses across South Dakota. For property tax purposes, the department has separated the industry into four different categories: Rural Electric, Investor or Privately Owned, Commercial Wind Generation Facilities and Municipal Electric.

Rural Electric Companies

Rural Electric Companies furnish electricity for consumption principally in rural areas of South Dakota. Rural Electric Cooperatives and Public Power Companies are included in this category. Transmission and Distribution Property is divided into real property and personal property for the purpose of taxation. The real property, land and buildings, is assessed by the County Director of Equalization. The counties determine and collect the tax at the same rates and at the same time as other locally assessed property. The personal property (which includes all wires, lines, transformers, meters, machinery, fixtures, attachments and appurtenances) is subject to a generation tax in lieu of a property tax. The Companies are required to file an annual report with the Department in February. The Department certifies the taxes to the counties in May. Taxes are collected by the counties in June and distributed to the school districts. SDCL 10-36

Generating Property

The Department of Revenue is responsible for assessing the property that is owned by rural electric companies and used for the generation of electricity. The property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-35

Investor or Privately Owned Power & Light

The Department of Revenue is responsible for assessing the property owned by companies which furnish electricity for public use. The property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-35

Railroads

The Department of Revenue is responsible for assessing the property used in the operation of a railroad in South Dakota. The property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-28

Telecom Companies

Telecommunications companies provide telephone service to residents and businesses across South Dakota. For property tax purposes, the Department has separated the industry into three different categories: Local Exchange Companies, Long Distance Companies, & Wireless Companies. For more information concerning telecommunication companies that are regulated in South Dakota, visit these Public Utilities Commission websites:

Local Exchange Telephone Companies

These companies are subject to a gross receipts tax instead of the property tax. Companies are required to file their South Dakota Annual Reports with the Department in April of each year. The Department certifies the taxes to the school districts on or before July 1st. Taxes are collected by the Department on or before August 1st and distributed to the school districts by September 1st. SDCL 10-33-21 SDCL 10-33-26

Long Distance Companies

Department of Revenue is responsible for assessing the property of companies that provide long distance service in South Dakota. The property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed property. SDCL 10-33

Wireless Companies

Wireless Companies pay a 4% gross receipts tax on revenue from the sale at retail of intrastate and interstate telecommunications services to customers with a primary place of use in South Dakota. Gross Receipts includes the revenue of sales at retail of intrastate and interstate telecommunications services. Any real and personal property owned by a telecommunications company that is used or intended for use in furnishing and providing telecommunication services is exempt from real and personal property tax. Tax is reported and paid on your South Dakota sales tax return that is sent to the Department of Revenue. Taxes are collected by the department and distributed to the property tax reduction fund and to the counties based on population ratio. SDCL 10-33A

email Business Tax Division

Water Companies

Private or Investor Owner Water Companies

Department of Revenue is responsible for assessing the property of companies that provide water for public use. The property is assessed by the Department in July and the taxable value is then certified and sent to the counties in August. The counties determine and collect the tax at the same rates and at the same time as locally assessed. SDCL 10-35

Non-Profit Rural Water Supply Companies

Non-profit Rural Water Supply Companies are exempt from property taxes. SDCL -10-36A

Wind Companies

Wind Companies of 5mW of Greater

Commercial wind farms with a capacity of 5mW or greater pay a nameplate capacity tax and a production tax in lieu of all property taxes. The nameplate capacity tax is $3.00 per KW times the generating capacity. The production tax for commercial wind farms that were producing power prior to April 1, 2015 is $.00065 per KWH. The production tax for commercial wind farms that began producing power on or after April 1, 2015 is $.00045 per KWH. Companies are required to submit their South Dakota Annual Report and their payment on or before February 1st. SDCL 10-35-16.