What are the common exemptions to property tax?

In South Dakota, property taxes are taxes imposed by local governments on land and the buildings or structures on it for the purpose of generating revenue. Property tax exemptions are generally offered to individuals or organizations to reduce the amount of tax they owe. Common exemptions to property tax include homestead exemption, veterans’ exemption, agricultural exemption, and senior citizen exemption. The homestead exemption exempts homeowners from paying tax on the first $20,000 of their home’s value. This applies to all South Dakota homeowners including those in rural areas and special districts. Veterans of the U.S. Military who have received an honorable discharge may be eligible to receive an exemption of up to $119,820 from their property taxes. This exemption does not apply to properties owned by non-veterans with whom the veteran lives. Farmers in South Dakota may be eligible for an agricultural exemption of up to $5,110. This exemption, which is based on agricultural use, applies to buildings, equipment, machinery, and any other items necessary for agricultural production. Finally, South Dakota offers a senior citizen exemption for senior citizens over the age of 65 who meet specific qualifications. This exemption is equal to the amount of property tax that would ordinarily be owed, up to a maximum of $1,000.

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What are the common exemptions to property tax?

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