May 25, 2017

Owner Occupancy

There are several programs supported by the state which provide reductions or assistance with property taxes.

Tax Exempt Status
Disabled Veteran Property Tax Exemptions
Freeze on Assessments of Dwellings of Disabled and Senior Citizens
Paraplegic Property Tax Reduction
Paraplegic Veteran Property Tax Exemptions
Owner-Occupied Dwelling
Property Tax Credit on Renewable Resource Energy System


Tax Exempt Status

This exemption is for religious, charitable, benevolent, non-profit healthcare, and education groups. If you think your organization may qualify please contact the Department of Equalization at (605) 745-5136. This exemption must be applied for yearly, applications are due by November 1st. Organizations that recieved tax exempt status the previous year will be sent forms to renew their status.

Disabled Veteran Property Tax Exemptions
The Property Tax Reduction for Disabled Veterans Program exempts the first $100,000 of valuation of a disabled veteran’s property form property taxes. Under the program property is defined as the house (including manufactured and mobile homes), garage, and the lot upon which it sits or one acre, whichever is less. The property must be classified as owner-occupied as of November 1st. Widows and widowers are not eligible for this program.

To qualify:

  • the veteran must have been rated permanently or totally disabled due to a service-connected disability based on the established rating schedule used by the Veteran’s Affairs Rating Board
  • property must be owned and occupied by the disabled veteran
  • property must be classified as owner occupied

Proof of disability can be obtained by calling the Sioux Falls VA Regional Office at 1-800-827-1000 and requesting that they send you a statement verifying that you are permanently and totally disabled as the result of a service-connected disability(ies). Copies of these forms must be included in the application.

Application: Disabled Veteran Property Tax Exemption

The application is filed with the Department of Equalization in Hot Springs. The form must be filed on or beforeNovember 1st for the following assessment year and the taxes payable in the next year. Example: An application by November 1, 2008 is for the 2009 assessment year, and the property taxes payable in 2010.

Freeze on Assessments of Dwellings of Disabled and Senior Citizens
The Freeze on Assessments Program prevents the homeowner’s property from increasing in value, for tax purposes. This means that as the value of the home increases, the homeowner will pay tax on the former (lower) value. Property is defined as the house, garage, and the lot upon which it sits, or one acre, whichever is less.

To qualify:

  • you must be 65 year of age or older, or disabled
  • you must own the home or have retained a life estate in the property
  • your federal gross income plus any income not included in that figure (this includes Social Security Payments) must be lower than:
    • $24,599.44 for single member household
    • $30,749.30 for multiple member household
  • The full and true market value of the property must be less than $168,855.21 unless the applicant has received the assessment freeze in a preceding year on that property.

Form: Assessment Freeze for the Elderly & Disabled

Forms should be turned in to the Fall River County Treasurer on or before April 1st. The assessment freeze must be applied for yearly. Questions concerning applications and income should be directed to the Treasurer at 605-745-5145.
Paraplegic Property Tax Reduction
The reduction program is operated using a graduated income scale on income earned in the previous year. See following tables for information. Widows and widowers are aslo eligible for this program.

Single Member Household Multiple Member Household
If household income is between: Property tax reduction: If household income is between: Property tax reduction:
$0 – $5,000 100% $0 – $9,000 100%
$5,000 – $6,000 75% $9,000 – $10,000 75%
$6,000 – $7,000 50% $10,000 – $11,000 50%
$7,000 – $8,000 25% $11,000 – $12,000 25%
more than $8,000 0% more than $12,000 0%


To qualify:

  • the paraplegic applicant must own or occupy their property, or the unremarried widow / widower of such paraplegic.
  • the applicant must meet the income guidelines shown in the tables above


Form: The Reduction Program

Forms must be filed yearly with the Department of Equalization in Hot Springs on or by November 1st.
Paraplegic Veteran Property Tax Exemptions
The exemption program exempts a veteran’s property from all property taxes. The injury to the applicant does not have to be service related in order to qualify for the program. Widows and widowers of veterans are also eligible for the exemption program.

To qualify:

  • the paraplegic veteran applicant must own the property for which they are seeking an exemption

Form: The Exemption Program

Forms must be filed yearly with the Department of Equalization in Hot Springs on or by November 1st.


Owner-Occupied Dwelling
Owner occupancy makes a property eligible for a reduced levy for school general fund taxes. Owner occupancy forms are sent out yearly, only those who have changed their primary dwelling need to return the complete form.

The qualify:

  • you must own and live in the dwelling for which you are applying for owner occupancy.
  • you must live in the dwelling at least 50% of the year
  • you must not claim any other property as a principle residence

Form: Owner Occupancy

Forms must be filed with the Department of Equalization by March 1st.


Property Tax Credit on Renewable Resource Energy System
This is an assessment credit, not a tax credit. The deduction comes off the assessed value. This six year credit begins upon the completion of the energy system. The amount of credit is the difference in the assessed value with the system installed versus the assessed value without the system (having a regular heating/cooling system).

Year 1, 2, and 3 – the credit will be the difference in the assessed values as described above
Year 4 – the credit will be 75% of the base
Year 5 – the credit will be 50% of the base
Year 6 – the credit will be 25% of the base

Six years after installation of the system the credit expires.

Application: Renewable Resource Energy Assessment Credit

Applications must be filed between November 1 and December 10. The application only needs to be made once. Applications should be filed with the Department of Equalization in Hot Springs.