What is the difference between real and tangible property taxes?

Real property taxes and tangible property taxes are two different types of taxes in South Dakota. Real property taxes are based on the value of land and any structures built on it, such as a home or business. These taxes are assessed by local governments and typically account for the largest source of revenue for cities and counties. On the other hand, tangible property taxes are assessed based on the value of personal or tangible property, such as vehicles, boats, aircraft, machinery, equipment, and other types of equipment. These taxes are generally collected by the state and may be used to fund public services. The major difference between the two is the nature of the property being taxed. Real property taxes are assessed on the value of land and permanent structures like homes and businesses. On the other hand, tangible property taxes are assessed on the value of personal items, such as vehicles, boats, machinery and equipment. Additionally, real property taxes are typically collected by local governments, while tangible property taxes are collected by the state. In some cases, governments may assess both real and tangible property taxes on the same property. This is known as a combined assessment and is typically used to fund both local and state public services. However, the rates, exemptions, and other rules for each tax may vary depending on the specific jurisdiction.

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What is the difference between real and tangible property taxes?

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