Panel creates special tax category for leased residential property in SD

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PIERRE — In a 9-4 vote Tuesday, the House Taxation Committee decided to create a special tax category for leased residential property.

The bill, HB 1143, was seen as a necessary first step toward possibly establishing a separate general-education levy someday that would fall between commercial and owner-occupied levies. For now, the measure creates the new category but keeps the levy the same as other commercial property.

The full House of Representatives considers the matter today. At this time, said lobbyist Dean Krogman, representing the Multi-Housing Association of South Dakota, “There is no levy shift.”

This idea from Rep. Hal Wick, R-Sioux Falls, is one of several he’s attempted on behalf of Krogman and the multi-housing members this year.

The special category wouldn’t apply to rental housing if it is leased by transients for less than 29 consecutive days.

Wick said he wants to get a better idea of the taxable value of rental properties so that discussions can follow about tax changes that might spur more investment and construction in the rental sector.

He said more rental housing is needed in communities for workers as those communities work on economic development projects.

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