Small Commercial Wind Energy Property Tax Assessment (South Dakota)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Small Commercial Wind Energy Property Tax Assessment|
|Incentive Type||Property Tax Incentive|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Alternative tax assessment method takes only the base, foundation, tower and substations into account. Discretionary property tax formulas may not be assessed.|
|Eligible System Size||Maximum size: <5 MW|
|Program Administrator||S.D. Department of Revenue and Regulation|
|Date added to DSIRE||2003-05-14|
|Last DSIRE Review||2010-07-06|
Note: This incentive will be replaced by a new property tax incentive for renewable energy on July 1, 2010.
In May 2003, South Dakota enacted legislation defining a revised property tax assessment method for commercial wind energy facilities. Originally, this method applied to all commercial wind energy facilities regardless of their size. However, legislation enacted in March 2008 (HB 1320) exempted commercial wind facilities of five megawatts (MW) in capacity or larger from all property taxes in favor of an alternative taxing structure. Thus, the special property tax assessment listed here now applies only to commercial wind facilities with an aggregate capacity of less than 5 MW. The two special rules that now apply to such facilities are as follows:
- The property value assessment does not include the wind turbine or blades. (These are considered personal property.) The assessed property value only takes the base, foundation, tower and substations into account.
- Wind energy companies are not subject to discretionary property tax formulas.
All commercial wind facilities covered under this law, regardless of ownership, are assessed at the local level. Prior to the 2003 legislation, some facilities were centrally assessed for tax purposes at the state level.
|Contact Name||Michael Kenyon|
|Department||S.D. Department of Revenue and Regulation|
|Division||Division of Property and Special Taxes|
|Address||445 East Capitol Avenue|
|Place||Pierre, South Dakota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||SDCL § 10-4-36 et seq.|
|Date Enacted||3/20/2003 (subsequently amended)|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.