162A 97th Legislative Session 618
AMENDMENT 162A FOR THE INTRODUCED BILL
Introduced by: Senator Crabtree
An Act to revise the discretionary formula for reduced taxation of new structures and residential property.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 10-6-137 be AMENDED:
10-6-137.
Any structure
classified pursuant to this section, shallmust,
following construction, be valued for taxation purposes in the usual
manner. However,
theThe
board of county commissioners of the county where
in
which the
structure is located, may adopt any
a
formula for
assessed value to be used for tax purposes. The
Except
as otherwise provided in section 2 of this Act, the formula
may include,
for any or all of the five tax years following construction,
all, any portion,
or none of the assessed valuation
value
for tax
purposes. Any formula adopted shall
must
be equally
applied to specifically classified structures
properties
within a tax
increment financetaxing
district.
For purposes of this chapter, each political subdivision is
considered to be a separate taxing district and the board of county
commissioners may apply the formula differently to each of the
political subdivisions located within the county.
The board of county commissioners
of the county where
in
which the
structure is located may, if requested by the owner of the structure,
not
apply the discretionary formula and the full assessment shall be
madefully
assess the structure
without application of the formula. In waiving the formula for the
structure of one owner, the board of county commissioners is not
prohibited from applying the formula for subsequent new structures.
The assessed valuation
value
during any of
the five years may not be less than the assessed valuation
value
of the property
in the year preceding the first year of the tax years following
construction.
Any structure that is partially
constructed on the assessment date may be valued for tax purposes,
pursuant to this section,
and the valuation
value
may not be less
than the assessed valuation
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.
Following the five-year period
under this section, the property shall
must
be assessed at
the same percentage as is
all other
property for tax purposes,
except as otherwise provided in section 2 of this Act.
Any of the following types of real property may be specifically classified for the purpose of taxation pursuant to this section:
(1) Any new industrial or commercial structure, or any addition, renovation, or reconstruction to an existing structure, located within a designated urban renewal area as defined in § 11-8-4, if the new structure, addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;
(2) Any new industrial structure, including a power generation facility, or an addition to an existing structure, if the new structure or addition has a full and true value of thirty thousand dollars or more;
(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;
(4) Any new commercial structure, or any addition to an existing structure, except a commercial residential structure as described in subdivision (5), if the new structure or addition has a full and true value of thirty thousand dollars or more;
(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;
(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;
(7) Any new residential
structure, or addition to or renovation of an existing structure,
located within a redevelopment neighborhood established pursuant to
§ 10-6-141,
if the new structure, addition, or renovation has a full and true
value of five thousand dollars or more. The structure shall
must
be located in
an area defined and designated as a redevelopment neighborhood based
on conditions provided in § 11-7-2
or 11-7-3:
;
or
(8) Any commercial, industrial,
or nonresidential agricultural property which
that
increases more
than ten thousand dollars in full and true value,
as a result of reconstruction or renovation of the structure.
Section 2. That a NEW SECTION be added:
For any real property specifically classified under subdivisions 10-6-137(5), (6), and (7), the formula adopted by the board of county commissioners may include:
(1) No more than twenty-five percent of the increased assessed value in the first or second year following the completion of construction;
(2) No more than fifty percent of the increased assessed value in the third or fourth year following the completion of construction;
(3) No more than seventy-five percent of the increased assessed value in the fifth or sixth year following the completion of construction; and
(4) One hundred percent of the increased assessed value in the seventh year following the completion of construction and each year thereafter.
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.
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.
Section 3. That § 10-6-138 be AMENDED:
10-6-138.
If the board of
county commissioners of
a county has
not adopted a formula pursuant to § 10-6-137
or section 2 of this Act,
the governing board of a municipality where
in
which the
structures defined
in § 10-6-137
or property are
located, or within three miles of the corporate limits of the
municipality,
may in
the governing board's discretion adopt
all or any part of the
a formula for
assessed value pursuant to § 10-6-137
or section 2 of this Act.
In the case of residential structures described in § 10-6-137, the governing board of a municipality may adopt all or any part of a formula that was:
(1) Not adopted by the board of county commissioners; or
(2) Not fully adopted by the board of county commissioners.
Section 4. That § 10-6-141 be AMENDED:
10-6-141.
The board of
county commissioners or the municipal governing body that approves
the adoption of a reduced valuation
value,
pursuant to
subdivision 10-6-137(7)
section 2 of this Act, for any residential structure within a
redevelopment neighborhood,
shall, by ordinance, identify the exact
boundaries
of the redevelopment neighborhood where
in
which the
reduced valuation
value
will be
available.
The boundaries of the redevelopment neighborhood need not be contiguous.
Section 5. That § 10-12-44 be AMENDED:
10-12-44.
The county auditor
in
eachhaving
jurisdiction over a
school district shall raise additional revenue, for the general fund
and special education fund, from real property taxes,
to compensate for a tax abatement, a tax increment financing
district, or a discretionary formula as
followsin
accordance with the following:
(1) For tax increment financing
districts created pursuant to chapter 11-9,
the county auditor shall impose an additional tax levy,
for an amount not to exceed an amount equal to the sum of the levies
in §§ 10-12-42
and 13-37-16
times
multiplied
by the tax
increment valuationvalue,
as defined in § 11-9-1;
(2) For property subject to
§ 10-6-137,
section 2 of this Act,
or §
10-6-144,
the county auditor shall impose an additional tax levy,
for an amount not to exceed the amount of taxes that were not
collected,
due to the reduction in valuation
value
based on the
maximum levies,
pursuant to §§ 10-12-42
and 13-37-16;
and
(3) For abated taxes, the county auditor shall impose an additional tax levy, for an amount not to exceed the amount of the school district's portion of the taxes that were abated, pursuant to chapter 10-18, during the previous tax year.
The levies in this section are
not subject to the referendum provision of § 10-12-43
and these levies
shall
must maintain
the same proportion to each other,
as represented in the mathematical relationship at the maximum levies
pursuant to § 10-12-42.
Section 6. That § 11-9-20 be AMENDED:
11-9-20.
On application in
writing by the municipal finance officer, on a form prescribed by the
department, the department shall determine the aggregate assessed
value of the taxable property in the district,
which aggregate assessed value, on certification to the finance
officer, shall constitute
and certify that value to the finance officer as
the tax increment base of the district. The application shall
must
be accompanied
by a detailed parcel list of the included legal descriptions,
property ownership, and valuationvalue,
as provided by the director of equalization office,
of the affected corresponding county. Except as provided for
in
§ 11-9-20.1,
the department shall use the values,
as last previously certified by the department,
adjusted for the value to the date the district was created,
for any buildings or additions,
completed or removed,
and without regard to any reduction pursuant to §§ 1-19A-20,
10-6-137,
and 10-6-144,
and section 2 of this Act.
Section 7. That § 13-13-20.4 be AMENDED:
13-13-20.4.
For any property
structure
given a reduced
valuation
value
pursuant to
§ 10-6-137
or 10-6-144,
the portion of actual assessed valuation
value
of the property
used when calculating state aid to education shall
must
be twenty
percent in the first year, forty percent in the second year, sixty
percent in the third year, eighty percent in the fourth year, and one
hundred percent each year thereafter.
For any structure or property given a reduced value pursuant to section 2 of this Act or § 10-6-144, the portion of actual assessed value of the property used when calculating state aid to education must be:
(1) Twenty-five percent in the first or second year;
(2) Fifty percent in the third or fourth year;
(3) Seventy-five percent in the fifth or sixth year; and
(4) One hundred percent in the seventh year and each year thereafter.
In
addition, theThe
actual assessed valuation
value
of any property
given exempt status,
pursuant to § 10-4-39
shall,
must be used
when calculating state aid to education.
Underscores indicate new language.
Overstrikes
indicate deleted language.