How are new property taxes calculated?

Property taxes in the state of South Dakota are calculated based on the current market value of the property being taxed. The new property tax rate is determined annually by the local county or municipality. Before the tax rate is determined, the local government must forecast its needs and expenses for the following year. The tax rate is usually expressed as a percentage of the assessed value of the property. This value is based on the fair market value of the property, or what it would be worth if you sold the property on the open market. The assessed value is usually less than the property’s current market value, and takes into consideration any exemptions or special circumstances. Once the tax rate is set, it is multiplied by the assessed value of the property, and the resulting number is the total amount of property tax due for that year. The tax rate can change from year to year, and county or municipal governments may adjust their rates in response to changes in the local economy or budget needs. In addition to the basic tax rate, there may be additional taxes applied to the property. This includes special purpose taxes (such as those for schools and roads), and taxes that are applied to certain types of property, such as personal property and commercial property. Property taxes can vary significantly from one area to the next, so it is important for homeowners to familiarize themselves with the tax rates in their area. Homeowners can also contact their local county or municipal government to learn more about the specific taxes and rates that apply to their property.

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How are new property taxes calculated?

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