Small Commercial Wind Energy Property Tax Assessment (South Dakota)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place South Dakota

Name Small Commercial Wind Energy Property Tax Assessment
Incentive Type Property Tax Incentive
Applicable Sector Commercial
Eligible Technologies Wind
Active Incentive No

Implementing Sector State/Territory
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



References DSIRE[1]


Summary

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.


Incentive Contact

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
Zip/Postal Code 57501
Phone (605) 773-3311


Email proptaxin@state.sd.us
Website http://www.state.sd.us/drr2/propspectax/assessor/power_light.htm
     
     

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)
Expiration Date 2010-07-01

















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"