Tax Breaks and Reductions
State law provides several means to reduce the tax burden of senior citizens.
Sales and property tax refunds and property tax freezes are available to seniors who meet the qualifications.
Property Tax Freeze
Those who meet the requirements for a property tax freeze will receive a freeze on the assessment of their home. Seniors and disabled people may qualify by meeting the following conditions:
- Having a household income of less than $14,000 for a single member household.
- Having a household income of less than $17,500 for a multiple-member household.
- Having owned the single family dwelling for one year, or having been a South Dakota resident for one year.
- Having resided in the home for at least 200 days of the previous calendar year.
- The value of the home must be below $100,000.
Applications for the freeze should be made at the county treasurer's office before April 1 of each year.
Property Tax Refunds
Property tax refunds are available to disabled people and people 65 and older. To qualify you must have owned your home for three years or have lived in South Dakota for five. Refunds are only available for single household dwellings.
The amount of refund is based on your income level. Applications are available from the county treasurers office and should be made by July 1. Refunds will be received by September 1.
Property tax refunds are not available to those receiving sales tax refunds.
Sales Tax Refunds
Those people who do not receive a property tax refund and who do not own a home may apply for a refund of sales tax.
Applicants must be 65 or older, disabled, a resident of South Dakota for the entire calendar year, and meet strict income requirements. Only one claimant per household is allowed. Applications and assistance are available from your county treasurer. The deadline for filing your claim is July 1st. Refunds are made by September 1st.
Property Tax Reduction from Municipal Taxes
Some South Dakota Communities might choose to give senior citizens and disabled people discounts on property taxes.
The municipal governing board may adopt the South Dakota law applying to these reductions. If they choose to adopt it, seniors receive a reduction in property taxes paid to the city based on their income level.
To qualify, you must be 65 or older or disabled, and have owned and lived in your house for five years. The home must also be a single family dwelling.
Your county treasurer will know if this reduction applies to your town and if you qualify for it.