An Act to establish a property tax exemption for religious societies, and to modify the application requirements for certain property tax exemptions.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 10-4:

Where a religious society providing religious services in the state owns unimproved land, that unimproved land is exempt from taxation, for a period not to exceed two years.

The county treasurer shall keep record of the estimated amount of property tax relief provided to any religious society under this chapter. After two years of receiving a property tax exemption under this section, if the land does not have any structures affixed to it that are used for religious purposes, the religious society must pay to the county the estimated amount of property tax relief granted to it over the duration of the exemption provided under this section.

Section 2. That § 10-4-15 be AMENDED:

10-4-15. Any person, organization, corporation, or association claiming a property tax exemption status for any property under §§ 10-4-8.1 to 10-4-14, inclusive, § 10-4-39, or as may otherwise be provided by law, shall apply for such the exemption to the county director of equalization on forms prescribed by the secretary of revenue prior to November first of the tax year.

If a property is claimed as exempt from property tax pursuant to §§ 10-4-9 and section 1 of this Act, and determined by the board of equalization as exempt under § 10-4-16 for a tax year, the property owner is entitled to the same property tax exemption on the property for each tax year thereafter without submitting an application in any following tax year, unless:

(1) A change in ownership of the property occurs;

(2) The county board of equalization determines the property no longer meets the requirements of the property tax exemption; or

(3) For property exempt pursuant to section 1 of this Act, the property owner has been granted the exemption for the maximum number of years allowed under section 1 of that Act.