What is meant by the term “taxable value”?

In South Dakota, the term “taxable value” is used in relation to property tax law. This term indicates the total value of a property after allowances, exemptions, and credits have been taken into account. Taxable value is the property’s fair market value minus any deductions that can be applied to the assessment. For example, a home’s fair market value is $200,000, but it is eligible for an exemption of $20,000. The taxable value of the home is then $180,000. This means that the property owner would be responsible for paying taxes on the $180,000 value of the home. In South Dakota, property taxes are based on the taxable value of a property. This taxable value is calculated annually by county assessors and is the basis of how much a property owner must pay in taxes. The assessed value takes into account the fair market value, as well as deductions that the property owner is eligible for. The resulting taxable value of the property is the total amount of taxes the property owner is expected to pay.

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What is meant by the term “taxable value”?

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