STURGIS, S.D. – Meade County Commissioners this week approved a new discretionary formula for tax purposes after delaying action earlier this month in order to obtain some more information.
The commission approved two resolutions, the first of which is calculated on a no tax for five year model on new construction. This is similar to what the county had in place before to encourage new construction in the county, but includes one caveat as mandated by the state.
Commission assistant Jerry Derr says the previous formula excluded TIF’s. The new formula will include those.
The commission also passed a 0-0-50-100-100 formula for vacant lots in the county. Derr says that resolution was passed to encourage construction on those vacant lots.
The commission had to go back and reform their tax formula due to a state law passed in the last legislative session and that went into effect July 1.
The law states that “any structure classified pursuant to this section, shall, following construction, be valued for taxation purposes in the usual manner.”
The county wanted to keep the five year tax free formula in place to reward new construction within the county.
