Rate Breakdown

Property taxes in Day County are calculated by multiplying the assessed value (minus exemptions) by the total local millage rate.

How Property Tax Works in Day County

Property taxes in Day County are an ad valorem tax, meaning they are based on the value of the property you own. The process begins with the Day County Director of Equalization, who is responsible for determining the "full and true" market value of all real property within the county. By South Dakota law, property is assessed at its market value, though the taxable value may be adjusted based on the specific classification of the property, such as agricultural, owner-occupied, or commercial.

Once the assessments are finalized, millage rates are applied to calculate your final tax bill. A "mill" represents one dollar of tax for every $1,000 of assessed taxable value. These rates are not arbitrary; they are determined by the budgetary requirements of various local taxing jurisdictions, including the Day County government, school districts, townships, and municipalities. Your total tax rate is the sum of the rates from all the taxing entities that provide services to your specific location.

Available Exemptions

South Dakota provides several programs to reduce the property tax burden for eligible residents. In Day County, homeowners should be aware of the following exemptions and relief programs:

• Owner-Occupied Classification: This is the most common form of relief. By applying for this status, homeowners receive a lower tax rate on their primary residence compared to other property types.
• Assessment Freeze for the Elderly and Disabled: This program prevents the assessed value of a home from increasing for homeowners who are at least 65 years old or multi-year disabled, provided they meet specific income and property value requirements.
• Disabled Veteran Exemption: Veterans who are rated as 100% disabled due to service-connected causes may be exempt from property taxes on up to $150,000 of the assessed valuation of their primary residence.
• Homestead Exemption: This program allows certain qualifying individuals to delay the payment of property taxes, though the taxes eventually become a lien against the property.

Payment Schedule & Deadlines

In South Dakota, property taxes are paid in arrears, meaning the taxes you pay this year are based on the assessment from the previous year. Day County property owners have the option to pay their taxes in two equal installments to help manage their finances.

• First Installment: Due by April 30th.
• Second Installment: Due by October 31st.

If these deadlines fall on a weekend or a holiday, the deadline is typically extended to the next business day. It is vital to make payments on time, as late payments are subject to an interest penalty of 10% per annum, calculated monthly. If you have a mortgage, your taxes may be paid through an escrow account, but it remains the owner’s responsibility to ensure the County Treasurer receives payment by the deadline.

Appealing Your Assessment

If you believe the assessed value of your property is higher than its actual market value or is inconsistent with similar properties in Day County, you have the right to appeal. The process begins when you receive your Assessment Notice in early March. You must first contact the Director of Equalization to discuss the valuation. If a resolution is not reached, you may file a formal appeal with the Local Board of Equalization. Further appeals can be escalated to the County Board of Equalization and eventually to the South Dakota Office of Hearing Examiners or Circuit Court if necessary. Note that appeals must be based on valuation, not the dollar amount of the tax bill.