*Cross rreferences—Administration, ch. 2; revenues and special funds, §
2-16; licenses, ch. 23; taxes received for park and recreation purposes, § 27-30; utility rates and charges, §
41-33 et seq.; storm drainage fee, §
41-80; special assessment for correction of nuisance vegetation, § 42-21.
Article VII. Reduced Taxation for New Commercial Structures or New Commercial Residential Structures, or Additions, Renovations, or Reconstruction to Existing Structures Located within the City's Designated Area of the City of Sioux Falls, SD
Sec. 39-16. Imposition of retail sales and service tax and exemptions therefrom.
There is hereby imposed as a city retail occupational sales and service tax upon the privilege of engaging in business a tax of one percent on the gross receipts of all persons engaged in business within the jurisdiction of the city and county, who are subject to the state retail occupational sales and service tax, SDCL ch. 10-45.
Sec. 39-16.1. Imposition of additional retail sales and service tax.
(a) There is hereby imposed as a city retail occupational sales and service tax upon the privilege of engaging in business, in addition to the tax imposed by section
39-16 of this article, a tax measured by 1 percent of the gross receipts of all persons engaged in business within the jurisdiction of the city and county, who are subject to the state retail occupational sales and service tax, SDCL ch. 10-45, and acts amendatory thereto.
(b) Any revenues received under subsection (a) of this section shall be deposited to the city treasury in a fund designated for the capital improvements as outlined within section
34½-13 and defined as capital by the city's accounting manual, debt retirement, and furniture, fixtures, and equipment (“FF&E”) on new construction and transfer to a nongovernmental fund to provide funding for the same.
Editor’s note–At the request of the city the provisions of § 39-16.1 have been amended to reflect the sales tax as set out in Ord. No. 70-03, adopted Aug. 4, 2003.
Editor’s note–It should be noted that notwithstanding any provision of Ord. No. 14-04 to the contrary, the second penny sales use tax of .92 percent established pursuant to Ord. No. 70-03 and codified in the revised ordinances of the City of Sioux Falls in Sections 39-16.1 and 39-47.1 has been in effect from and after January 1, 2004, to the current date, and shall remain at such rate until changed by duly adopted action by the City Council.
Sec. 39-17. Special tax rates.
Notwithstanding the rate of tax established in sections 39-16 and 39-16.1, from and after March 1, 1992, the rate of tax upon sales of leases or rentals of hotel, motel, campsites, or other lodging accommodations within the city for periods of less than 28 consecutive days; sales of alcoholic beverages as defined in SDCL 35-1-1; sales of establishments where the public is invited to eat, dine, or purchase and carry out prepared food for immediate consumption; ticket sales or admissions to places of amusement, athletic, or cultural events is three percent. Any revenues received from the tax imposed in this section in excess of two percent, but not more than three percent, shall be used only for the purpose of land acquisition, architectural fees, construction costs, and payment for an entertainment center and a convention center, including maintenance, staffing, and operations of such facilities and the promotion and advertising of the city, its facilities, attractions, and activities.
(a) From and after January 1, 1996, there is hereby imposed in addition to the taxes imposed by sections 39-16, 39-16.1, and 39-17, an additional one percent tax upon the gross receipts of all leases or rentals of hotel, motel, campsites, or other lodging within the city for periods of less than 28 consecutive days.
(b) All revenues received under this section shall be used for funding the Sioux Falls Convention and Visitors Bureau or its successor.
(Ord. No. 150-95, § 2, 12-4-95)
Sec. 39-18. Collection.
Such tax imposed in this article shall be collected by the state department of revenue in accordance with the same rules and regulations applicable to all other state sales tax and under such additional rules and regulations as the state secretary of revenue shall lawfully prescribe.
Editor’s note— Ord. No. 110-05, § 1, adopted Nov. 7, 2005, repealed § 39-19, which pertaining to exemptions from taxation. See also the Code Comparative Table.
Sec. 39-19.1. Special rate for vending receipts.
Notwithstanding any other provision of this article, the rate of city sales tax on the gross receipts from vending machines, including but not limited to pinball machines, video games, phonographs and all other mechanical devices for amusement, shall be limited to one percent of such gross receipts.
(Ord. No. 12-84, § 2, 1-23-84)
Sec. 39-20. Interpretation.
It is declared to be the intention of this article and the taxes levied under this article that the article shall be interpreted and construed in the same manner as all sections of the state Retail Occupational Sales and Service Act, SDCL ch. 10-45, and acts amendatory thereof, and that this shall be considered a similar tax except for the rate of that tax.
(Ord. No. 51-79, § 1, 6-4-79)
Sec. 39-21. Penalty.
Any person failing or refusing to make reports or payments prescribed by this article and the rules and regulations relating to the ascertainment and collection of the tax levied in this article shall be guilty of a violation of a city ordinance and upon conviction shall be punished as provided in section 1-4. In addition, all such collection remedies authorized by SDCL ch. 10-45 and acts amendatory thereof are hereby authorized for the collection of these taxes by the department of revenue.
(Ord. No. 51-79, § 1, 6-4-79)
Secs. 39-22--39-46. Reserved.
ARTICLE III. USE TAX*
__________
*Cross-reference—Licenses, ch. 23.
State law reference—Use tax, SDCL ch. 10-46.
__________
Sec. 39-47. Imposition.
There is hereby imposed a city excise tax upon the privilege of the use, storage and consumption, within the jurisdiction of the city and county of tangible personal property purchased from and after the effective date of the ordinance from which this section is derived at one percent upon all transactions for use, storage and consumption which are subject to the state Use Tax Act, SDCL ch. 10-46, and acts amendatory thereof.
(a) There is hereby imposed as a city excise tax upon the privilege of the use, storage and consumption, within the jurisdiction of the city and county, of tangible personal property purchased from and after the effective date of the ordinance from which this section is derived, in addition to the tax provided in section 39-47 of this article, a tax at 1 percent upon all transactions or use, storage and consumption which are subject to the state Use Tax Act, SDCL ch. 10-46, and acts amendatory thereof.
(b) Any revenue received under subsection (a) of this section shall be deposited to the city treasury in a fund designated for the capital improvements as outlined within section 34½-13, and defined as capital by the city's accounting manual, debt retirement, furniture, fixtures, and equipment ("FF&E") on new construction and transfer to a nongovernmental fund to provide funding for the same.
Editor’s note—At the request of the city the provisions of § 39-47.1 have been amended to reflect the sales tax as set out in Ord. No. 70-03, adopted Aug. 4, 2003.
Editor’s note—It should be noted that notwithstanding any provision of Ord. No. 14-04 to the contrary, the second penny sales use tax of .92 percent established pursuant to Ord. No. 70-03 and codified in the revised ordinances of the City of Sioux Falls in Sections 39-16.1 and 39-47.1 has been in effect from and after January 1, 2004, to the current date, and shall remain at such rate until changed by duly adopted action by the City Council.
Sec. 39-48. Collection.
Such tax is levied pursuant to authorization granted by SDCL ch. 10-52 and acts amendatory thereof, and shall be collected by the state department of revenue in accordance with the same rules and regulations applicable to the state sales tax and use tax and under such additional rules and regulations as the state commissioner of revenue shall lawfully prescribe.
(Ord. No. 51-79, § 2, 6-4-79)
Sec. 39-49. Interpretation.
It is declared to be the intention of this article and the taxes levied under this article that the article shall be interpreted and construed in the same manner as all sections of the state use tax, SDCL ch. 10-46, and acts amendatory thereof, and that this shall be considered as a similar tax except for the rate of that tax.
(Ord. No. 51-79, § 2, 6-4-79)
Sec. 39-50. Penalty.
Any person failing or refusing to make reports or payments prescribed by this article and the rules and regulations relating to the ascertainment and collection of the tax levied in this article shall be guilty of a violation of a city ordinance and upon conviction shall be punished as provided in section 1-4. In addition, all such collection remedies authorized by SDCL ch. 10-46, and acts amendatory thereof are hereby authorized for the collection of these excise taxes by the department of revenue.
(Ord. No. 51-79, § 2, 6-4-79)
Secs. 39-51--39-79. Reserved.
ARTICLE IV. URBAN AND RURAL SERVICE DISTRICTS
Sec. 39-80. Service districts established.
Pursuant to the authority granted in SDCL ch. 9-21A, the city is hereby divided in area into an urban service district and a rural service district constituting separate taxing districts for the purpose of levying all city ad valorem property taxes, except those levied for the payment of bonds.
(Ord. No. 89-84, 5-21-84)
Sec. 39-81. Rural service district--Criteria for lands included.
The rural service district shall include only such platted or unplatted lands as in the judgment of the city council are rural in character, are used or usable for agriculture, and are not developed for commercial, industrial or urban residential purposes. The rural service district may include lands which are not contiguous to one another.
(Ord. No. 89-84, 5-21-84)
Sec. 39-82. Same--Lands described.
The rural service district shall consist of those (platted) or (unplatted) or (both) lands described in Section
39-82A, all of which lands are rural in character, are used or usable for agriculture, and are not developed for commercial, industrial, or urban residential purposes.
Sec. 39-82A. Lands included in rural service district.
(1) SE1/4 NW1/4 S of I-90 and S1/2 NE1/4 S I-90 and W of I-29 and NE1/4 SE1/4 W of I-29 Unplatted 25-102-50, Minnehaha County, South Dakota
(2) Tract 2 (ex Redstone Village Addition) Cloverleaf Addition 30-102-49 to the City of Sioux Falls, Minnehaha County, South Dakota
(3) SE1/4 NW1/4 (ex H1 and H2) and NE1/4 SW1/4 (ex Skyline Heights and H2) and (ex Redstone Village Addition) Unplatted 30-102-49, Minnehaha County, South Dakota
(4) S1/2 SW1/4 (ex H1, H2, H3, H4, H5 and Brigham Addition and ex Pt N. Granite Ln. Contained therein and ex Great Meadow Addition) 30-102-49, Minnehaha County, South Dakota
(5) Tract 1 Great Meadow Addition to the City of Sioux Falls, 30-102-49, Minnehaha County, South Dakota
(6) SE1/4 N of I-90 (ex Platted Parts and Rd and N390' E223.4' and E700' W1157.05' N of H-1 and I-90 Place Addition and I-90 Place 2nd Addition) 28-102-49, Minnehaha County, South Dakota
(7) SE1/4 (ex H1, H3, H4, H5, H6, and H7) 36-102-50, Minnehaha County, South Dakota
(8) SW1/4 (ex Green Hills Addition and H1, H2, H3, H4(1), H4(2), and H5) 36-102-50, Minnehaha County, South Dakota
(9) N1/2 vacated W. Thelin St. and vacated N. Potter Ave. from vacated W. Thelin St. 213' N Lying Adj. and N1/2 N1/2 (ex Lot H1, H2, H3, and H4 and ex Thelin Addition and ex Thelin Business Center Addition) 1-101-50, Minnehaha County, South Dakota
(10) S1/2 NW1/4 Lying W of Dawley Addition (ex W50' and ex H-1 and ex Haley Park Addition) 1-101-50, Minnehaha County, South Dakota
(11) S1/2 NW1/4 Lying E of Dawley Addition (ex Grasslands 2nd Addition) 1-101-50, Minnehaha County, South Dakota
(12) Tract 1 (ex Platted Part) Grasslands Addition to the City of Sioux Falls, 1-101-50, Minnehaha County, South Dakota
(13) Tract 1 North Ridge Addition to the City of Sioux Falls 1-101-50, Minnehaha County, South Dakota
(14) Tract 1 (ex H-1) Greenfields Addition to the City of Sioux Falls, 1-101-50, Minnehaha County, South Dakota
(15) N1/2 NW1/4 including FE1, FE2, and FE3 (ex Lot H1, H2, H3, and H4) 6-101-49, Minnehaha County, South Dakota
(16) N1/2 NE1/4 including FE1 (ex 2.24 Acres SE Corner and Lot E-1 Co. Aud. Sub. and ex H1 6-101-49, Minnehaha County, South Dakota
(17) S1/2 NW1/4 (ex H1 and H3) 6-101-49, Minnehaha County, South Dakota
(18) S1/2 NE1/4 (ex 26.25 A SE Corner) 6-101-49, Minnehaha County, South Dakota
(19) N1/2 SW1/4 including FE1, FE2, and FE3 (ex Lot H1, H2, H2, H3 and ex S360 E755 W863 and ex Sencore Addition) 6-101-49, Minnehaha County, South Dakota
(20) NW1/4 SE1/4 (ex 15.45 Acres SW Corner) 6-101-49, Minnehaha County, South Dakota
(21) N1/2 NW1/4 (ex Lot H1, H2 and ex W50 and ex SD Tech Bus Center Addition and ex SD Bus Tech Park Addition) and SW1/4 NW1/4 (ex W50') 12-101-50, Minnehaha County, South Dakota
(22) NE1/4 SE1/4 (ex Aspen Heights Addition) 11-101-50, Minnehaha County, South Dakota
(23) SE1/4 SE1/4 (ex H-1 and ex E50' and ex Lalley Estates Addition and ex Rd and ex Aspen Heights Addition) 11-101-50, Minnehaha County, South Dakota
(24) W1/2 SE1/4 (ex Lalley Estates Addition and ex Aspen Heights Addition) 11-101-50, Minnehaha County, South Dakota
(25) W1/2 SW1/4 (ex Road and Lots H2, H3, H4 and W50') Unplatted 12-101-50, Minnehaha County, South Dakota
(26) NW1/4 NW1/4 (ex H1, H2, H2, H3, and H3) Unplatted 13-101-50, Minnehaha County, South Dakota
(27) SW1/4 NW1/4 (ex W200' and ex E363' W558' S420' and ex Lot H3) 13-101-50, Minnehaha County, South Dakota
(28) NE1/4 NW1/4 (ex Lot H3) 13-101-50, Minnehaha County, South Dakota
(29) SE1/4 NW1/4 (ex Lot H2) and NE1/4 SW1/4 (ex Railway and Rd and ex Lot H1 and H2) and Pt NE1/4 (ex Lot H2 and H3) W of I-29, 13-101-50, Minnehaha County, South Dakota
(30) W300' (ex Part Lying within Co. Aud. Tract 3 SW1/4 and ex I-29 Lake Park Addition and ex Lot E-19) NW1/4 SW1/4 24-101-50, Minnehaha County, South Dakota
(31) N3/4 SE1/4 East of I-229, 3-101-49, Minnehaha County, South Dakota
(32) NW1/4 (ex H-1, H-2 and H-3) 2-101-49, Minnehaha County, South Dakota
(33) NE1/4 (ex H1 and ex E810.15 S727.91) but including E280' S316.96 SE1/4 NE1/4 Unplatted 2-101-49, Minnehaha County, South Dakota
(34) Part NE1/4 S and E Railroad and E1/2 SE1/4 (ex Ry R-1 and R-2) 36-102-49, Minnehaha County, South Dakota
(35) Part SW1/4 SE1/4 S and E of Omaha Railroad 36-102-49, Minnehaha County, South Dakota
(36) Tract 1 Anderson's Tracts (ex H1 and H2) and S1/2 vacated W. Jeanne Dr. Lying Adj. 25-101-50, Minnehaha County, South Dakota
(37) Outlot A (ex Tracts 1, 2, 3, 4, and H1, H2 and ex Sunset Ridge Addition) Taylor Heights Addition to the City of Sioux Falls, 7-100-50, Lincoln County, South Dakota
(38) Tract 1 (ex Lot 3 Blk 1) The Edges Addition to the City of Sioux Falls, 7-100-50, Lincoln County, South Dakota
(39) Tract 1 and E1/2 vacated Marion Rd. and E1/2 S. Broadband Ln. (ex Inter Crossing Business Park Addition and ex H1, H2, H3, H4, and H5) SW1/4 and Gov't. Lots 3 and 4 Pana Tracts 8-100-50, Lincoln County, South Dakota
(40) Tract 2 Pana Tracts (ex Pana Addition and ex Lot H2) SW1/4 and Gov't. Lots 3 and 4, 8-100-50, Lincoln County, South Dakota
(41) SW1/4 SE1/4 (ex H-1 and First City Office Park Addition, Good Samaritan 1st Addition and Good Samaritan 2nd Addition) 36-101-50, Minnehaha County, South Dakota
(42) E1/2 (ex Lot H1, H2 and Leih's Addition) Rolling Hill's Subd, 8-100-50, Lincoln County, South Dakota
(43) S1/2 SE1/4 (ex H1, H2, H3, IM, IM2 and Sonler Addition) 8-100-50, Lincoln County, South Dakota
(44) NE1/4 (ex RR ROW, and ex Lots H-1 and H-2 Therin) 18-100-50, Lincoln County, South Dakota
(45) N1/2 SE1/4 (ex Lot H1) 18-100-50, Lincoln County, South Dakota
(46) W650' (ex N1005') N1/2 NW1/4, 17-100-50, Lincoln County, South Dakota
(47) Tract 1 Sherr-Al Estates Addition to the City of Sioux Falls, 17-100-50, Lincoln County, South Dakota
(48) N1/2 S1/2 NW1/4 17-100-50, Lincoln County, South Dakota
(49) S1/2 S1/2 NW1/4 and N1/2 SW1/4 and N13' of W559' of E384' S1/2 SW1/4 (ex Lot H1) 17-100-50, Lincoln County, South Dakota
(50) Tract 6 Beal's Addition to the City of Sioux Falls, 17-100-50, Lincoln County, South Dakota
(51) Tract 5 Beal's Addition to the City of Sioux Falls, 17-100-50, Lincoln County, South Dakota
(52) Tract 4 Beal's Addition to the City of Sioux Falls, 17-100-50, Lincoln County, South Dakota
(53) NW1/4 (ex H1, H2 and Tract A Prairie View Addition) 16-100-50, Lincoln County, South Dakota
(54) SW1/4 (ex H1 and H2 W1/2 SW1/4 and ex Heather Ridge Addition and Heather Ridge II Addition and ex Grand Arbor Village Addition) 15-100-50, Lincoln County, South Dakota
(55) Tract 1 Pinewood Addition to the City of Sioux Falls, 22-100-50, Lincoln County, South Dakota
(56) Tract 2 Pinewood Addition to the City of Sioux Falls, 22-100-50, Lincoln County, South Dakota
(57) S1/2 SW1/4 (ex Tract 1 Springdale Addition and ex Lot H1) 14-100-50, Lincoln County, South Dakota
(58) Tract 1 Springdale Addition (ex Grand Prairie Addition) N1/2 SW1/4 14-100-50, Lincoln County, South Dakota
(59) NE1/4 (ex Nix Subd and H1 and H2 and ex Diamond Valley Addition) 14-100-50, Lincoln County, South Dakota
(60) N1/2 SE1/4 (ex E525' N275' and ex W495' E1020' N395' NE1/4 SE1/4 and ex W185' E525' S120' N395' NE1/4 SE1/4) and (ex Southcliff Grasslands Addition) and N570' SE1/4 SE1/4 14-100-50 ex W495' E1020' N395' NE1/4 SE1/4 and ex W185' E525' S120' N395' NE1/4 SE1/4) 14-100-50, Lincoln County, South Dakota
(61) Tract 2 (ex Whisper Ridge Addition) Thoms Addition to the City of Sioux Falls, 12-100-50, Lincoln County, South Dakota
(62) Tract 2 Six Hayes Addition SE1/4 SW1/4 and Gov't. Lot 6, 7-100-49, Lincoln County, South Dakota
(63) Gov't. Lots 2, 3, and 4 (ex Lots H1 and Lot H1) and N1/2 Lot 7 NW1/4 SE1/4 (ex NW Bell Tract 1 in Gov't. Lot 2 ex Tracts 1, 2, and 3 Shield's 1st Addition in Gov't. Lots 3 and 4 (ex Tract 2 Shield's 2nd Addition and ex Whispering Woods Addition) 7-100-49, Lincoln County, South Dakota
(64) Gov't. Lot 1 NW1/4, 18-100-49, Lincoln County, South Dakota
(65) SE1/4 (ex H1, H2, H3, and H4 and Summer Hill South Addition and Summer Hill Lift Addition) and W1/2 vacated S. Sycamore Ave. Lying Adj. 35-101-49, Minnehaha County, South Dakota
(66) N1/2 SW1/4 (ex H1, H2, H3, H4 and ex Prairie Gardens Addition) and NW1/4 SE1/4 36-101-49, Minnehaha County, South Dakota
(67) S1344.99' NE1/4, 35-102-50, Minnehaha County, South Dakota
(68) Tract 1 Golden Triangle Addition to the City of Sioux Falls, 8-100-50, Lincoln County, South Dakota
(Ord. No. 65-09, § 2, 7-6-09)
Sec. 39-83. Lands included in urban service district.
The urban service district shall include all lands within the boundaries of the city which are not included in the rural service district.
(Ord. No. 89-84, 5-21-84)
Sec. 39-84. Agricultural land annexed; limitation on mill levy and assessed value.
The tax levy and assessed value on the agricultural land annexed shall not exceed the average tax levy and average assessed value on unannexed agricultural land in adjoining townships in the county so long as the annexed land remains rural property and is included in the rural service district.
(Ord. No. 89-84, 5-21-84)
Sec. 39-85. Platting or construction in rural district.
Whenever any parcel of land included within the rural service district:
(1) Is platted in whole or in part;
(2) Is the subject of an application for a permit for the construction of a commercial, industrial or urban residential development or improvement to be situated on such parcel or any part thereof; or
(3) Otherwise fails to meet the criteria as set forth in section 39-82 of this article;
the board or officer of the city approving such plat or building permit or having knowledge of the change in circumstances shall report the change to the city council which shall make and enter an order transferring such parcel from the rural service district to the urban service district.
(Ord. No. 89-84, 5-21-84)
Sec. 39-86. Filing ordinance amendment or order with county auditor.
The city finance director is hereby directed to file with the appropriate county auditor a certified copy of Ordinance No. 89-84 from which this article is derived, every amendment thereof and every order adopted or entered pursuant to such ordinance.
(Ord. No. 89-84, 5-21-84)
Secs. 39-87--39-120. Reserved.
ARTICLE V. REDUCED TAXATION FOR NEW INDUSTRIAL
STRUCTURES, ADDITIONS THERETO WITHIN THE CITY
Sec. 39-121. Authority.
This article is adopted pursuant to the authority granted to the city pursuant to SDCL 10-6-35.4.
(Ord. No. 59-87, § 6, 7-27-87)
Sec. 39-122. Applicability; effective date.
(a) The term industrial structures or additions thereto as used in this article shall include, but not be limited to, the following uses:
(1) Apparel and textile manufacturing.
(2) Wood, furniture and manufacturing.
(3) Lumber wholesaling.
(4) Printing and publishing plants.
(5) Warehousing and distribution (no retail uses).
(6) Electronics assembly and manufacturing.
(7) Scientific research and development, including incubation of start-up technology businesses.
(8) Other light pollution-free manufacturing facilities.
(9) Food, agricultural processing, stockyards, rendering, and milk processing plants.
(10) Paper, pulp and wood processing and manufacturing.
(11) Chemical, petroleum and rubber manufacturing and distribution.
(12) Stone, glass, clay, brick and cement manufacturing.
(13) Primary metal and smelting.
(14) Metal fabricating and manufacturing.
(15) Distillation and purification plants.
(16) Manufacture and storage of electrical transformers.
(17) Data processing, hosting and related services including payroll services and financial transactions processing.
(18) Insurance underwriting, premium processing, and policyholder service facilities operated by domestic or foreign insurers or by other entities (other than licensed agents) who provide such services to insurers.
(b) This article shall apply to those new industrial structures or additions thereto that are commenced after August 21, 1987.
(a) All new qualifying structures, or additions or renovation or reconstruction of existing qualifying structures, which have a full and true value of $300,000.00 or more, added to real property shall be taxed pursuant to the following formula during the five tax years subsequent to the completion of their construction:
(1) The full and true value of such structures, additions, renovation or reconstruction shall be determined in the usual manner by the director of equalization.
(2) For the first tax year following construction, no portion of the taxable value shall be used for taxation purposes.
(3) For the second tax year following construction, 20 percent of the taxable value shall be used for taxation purposes.
(4) For the third tax year following construction, 40 percent of the taxable value shall be used for taxation purposes.
(5) For the fourth tax year following construction, 60 percent of the taxable value shall be used for taxation purposes.
(6) For the fifth tax year following construction, 80 percent of the taxable value shall be used for taxation purposes.
(b) The taxable value of such structures or additions during any of the five tax years subsequent to the completion of their construction may not be less than their taxable value in the year preceding the first year of the tax years following construction.
(c) For the sixth and all subsequent tax years following construction, such structures or additions shall be taxed in the same manner as all other similar industrial property within the city.
(d) Any such structures, additions, renovation or reconstruction, the construction of which is only partially completed on any assessment date, shall be assessed for taxation purposes in the usual manner.
(e) The new construction tax incentive shall be discontinued if the business use changes to a nonqualifying use during the five-year period such that it would be ineligible under the new use.
Sec. 39-127. Application for reduced taxation on new construction.
Any person desiring to claim reduced taxation on new construction shall make application to the assistant director of planning and building services on or before October1 in the year in which the project is completed and shall first appear on the tax rolls as a completed or modified structure. The application shall be submitted on a form prescribed by the assistant director of planning and building services. Upon the assistant director of planning and building services’ approval of the application, the assistant director of planning and building services shall notify the applicant within 30 days stating whether the facility is eligible to receive reduced taxation.
In January, the year following completion of the project, the assistant director of planning and building services will certify those improvements which qualify for reduced taxation to the director of equalization in the county in which the real property is taxed. Such new construction tax incentives are not assignable or transferable, except as collateral or security pursuant to SDCLCh. 57A-9.
This article shall apply only to those new industrial or commercial structures or additions thereto, or renovation or reconstruction of existing structures located within the city downtown center designated urban renewal area. It shall apply to new structures or additions thereto on which construction has been commenced after August 1, 1987. It shall also apply to renovations or reconstruction on which construction has commenced after June 30, 1988.
(a) All new industrial or commercial structures, or additions to existing structures, or renovation or reconstruction of existing structures, which new structures or additions or renovation or reconstruction have a full and true value of $50,000.00 or more, added to the real property and located within the city downtown center designated urban renewal area, as defined by SDCL 11-8-4, shall be taxed pursuant to the following formula during the five tax years subsequent to the completion of their construction:
(1) The full and true value of such structures, additions, renovation or reconstruction shall be determined in the usual manner by the director of equalization.
(2) For the first tax year following construction, no portion of the taxable value shall be used for taxation purposes.
(3) For the second tax year following construction, 20 percent of the taxable value shall be used for taxation purposes.
(4) For the third tax year following construction, 40 percent of the taxable value shall be used for taxation purposes.
(5) For the fourth tax year following construction, 60 percent of the taxable value shall be used for taxation purposes.
(6) For the fifth tax year following construction, 80 percent of the taxable value shall be used for taxation purposes.
(b) The taxable value of such structures, additions, renovation or reconstruction during any of the five tax years subsequent to the completion of their construction may not be less than their taxable value in the year preceding the first year of the tax years following construction.
(c) For the sixth and all subsequent tax years following construction, such structures, additions, renovation or reconstruction shall be taxed in the same manner as all other similar industrial or commercial property within the city.
(d) Any such structures, additions, renovation or reconstruction, the construction of which is only partially completed on any assessment date, shall be assessed for taxation purposes in the usual manner.
(e) The new construction tax incentive shall be discontinued if the business use changes to a nonqualifying use during the five-year period such that it would be ineligible under the new use.
Sec. 39-131. Application for reduced taxation on new construction.
Any person desiring to claim reduced taxation on new construction shall make application to the assistant director of planning and building services on or before October1 in the year in which the project is completed and shall first appear on the tax rolls as a completed or modified structure. The application shall be submitted on a form prescribed by the assistant director of planning and building services. Upon the assistant director of planning and building services' approval of the application, the assistant director of planning and building services shall notify the applicant within 30 days stating whether the facility is eligible to receive reduced taxation.
In January, the year following completion of the project, the assistant director of planning and building services will certify those improvements which qualify for reduced taxation to the director of equalization in the county in which the real property is taxed. Such new construction tax incentives are not assignable or transferable, except as collateral or security pursuant to SDCLCh. 57A-9.
ARTICLE VII. REDUCED TAXATION FOR NEW COMMERCIAL STRUCTURES OR NEW COMMERCIAL RESIDENTIAL STRUCTURES, OR ADDITIONS, RENOVATIONS, OR RECONSTRUCTION TO EXISTING STRUCTURES LOCATED WITHIN THE CITY'S DESIGNATED AREA OF THE CITY OF SIOUX FALLS, SD
Sec. 39-134. Authority.
This article is adopted pursuant to the authority granted to the municipalities pursuant to SDCL 10-6-35.24 and 10-6-35.25.
(Ord. No. 60-07, § 2, 5-7-07)
Sec. 39-135. Definitions.
(a) The term commercial structure as used in this article shall include:
(1) Retail services and trade establishments as defined by Section 15.03.020(535) of Appendix B of the Revised Ordinances of Sioux Falls with a total floor area as defined by Section 15.03.020(289) of Appendix B of the Revised Ordinances of Sioux Falls with a building footprint not exceeding 10,000 square feet on the premises, excluding the following uses:
a. Adult use, as defined by Section 15.03.020(31) of Appendix B of the Revised Ordinances of Sioux Falls;
b. Off-sale alcoholic beverage establishment, as defined by Section 15.03.020(455) of Appendix B of the Revised Ordinances of Sioux Falls;
c. On-sale alcoholic beverage establishment when it is the principal use as defined by Section 15.03.020(456) and (496) of Appendix B of the Revised Ordinances of Sioux Falls.
(2) Personal service establishments as defined by Section 15.03.020(478) of Appendix B of the Revised Ordinances of Sioux Falls.
(3) Day care center as defined by Section 15.03.020(190) of Appendix B of the Revised Ordinances of Sioux Falls.
(4) Boarding house as defined by Section 15.03.020(76) of Appendix B of the Revised Ordinances of Sioux Falls.
(5) Office building as defined by Section 15.03.020(454) of Appendix B of the Revised Ordinances of Sioux Falls with a total floor area as defined by Section 15.030.020(289) of Appendix B of the Revised Ordinances of Sioux Falls with a building footprint not exceeding 10,000 square feet on the premises.
(b) The term commercial residential structure as used in this article is a residential structure containing four or more dwelling units, excluding group homes, as defined by Section 15.03.020(334) of Appendix B of the Revised Ordinances of Sioux Falls.
(Ord. No. 60-07, § 3, 5-7-07)
Sec. 39-136. Applicability; effective date.
This article shall apply only to those new commercial residential structures thereto, or additions, renovations, or reconstruction to existing structures located within the city's designated area as set forth in Exhibit A of Ord. No. 60-07, adopted May 7, 2007, and to those new commercial structures or additions, renovations, or reconstruction to existing structures located within the city's Folsom's Addition as set forth in Exhibit B of Ord. No. 60-07, adopted May 7, 2007. It shall apply to new structures or additions thereto on which construction has been commenced after May 1, 2007. It shall also apply to renovations or reconstruction on which construction has commenced after May 1, 2007.
(Ord. No. 60-07, § 4, 5-7-07)
Sec. 39-137. Calculation of tax.
(a) All new commercial structures or new commercial residential structures thereto, or additions, renovations, or reconstruction to existing structures, which new structures or additions or renovation or reconstruction have a full and true value of $30,000.00 or more, added to the real property and located within the city's designated area as set forth in Exhibit A of Ord. No. 60-07, adopted May 7, 2007, shall be taxed pursuant to the following formula during the five tax years subsequent to the completion of their construction:
(1) The full and true value of such structures, additions, renovation or reconstruction shall be determined in the usual manner by the director of equalization.
(2) For the first tax year following construction, 20% of the taxable value shall be used for taxation purposes.
(3) For the second tax year following construction, 40% of the taxable value shall be used for taxation purposes.
(4) For the third tax year following construction, 60% of the taxable value shall be used for taxation purposes.
(5) For the fourth tax year following construction, 80% of the taxable value shall be used for taxation purposes.
(b) The taxable value of such structures, additions, renovation or reconstruction during any of the five tax years subsequent to the completion of their construction may not be less than their taxable value in the year preceding the first year of the tax years following construction.
(c) For the fifth and all subsequent tax years following construction, such structures, additions, renovation or reconstruction shall be taxed in the same manner as all other similar industrial or commercial or commercial residential property within the city.
(d) Any such structures, additions, renovation or reconstruction, the construction of which is only partially completed on any assessment date, shall be assessed for taxation purposes in the usual manner.
(e) The new construction tax incentive shall be discontinued if the business use changes to a nonqualifying use during the five-year period such that it would be ineligible under the new use.
(Ord. No. 60-07, § 5, 5-7-07)
Section 39-138. Application for reduced taxation on new construction.
Any person desiring to claim reduced taxation on new construction shall make application to the assistant director of planning and building services on or before October 1 in the year in which the project is completed and shall first appear on the tax rolls as a completed or modified structure. The application shall be submitted on a form prescribed by the assistant director of planning and building services. Upon the assistant director of planning and building services’ approval of the application, the assistant director of planning and building services shall notify the applicant within 30 days stating whether the facility is eligible to receive reduced taxation.
In January, the year following completion of the project, the assistant director of planning and building services will certify those improvements which qualify for reduced taxation to the director of equalization in the county in which the real property is taxed. Such new construction tax incentives are not assignable or transferable, except as collateral or security pursuant to SDCL Ch. 57A-9.
In July of each year, the assistant director of planning and building services shall submit a report to the city council of all eligible completed new construction projects which qualified for the discretionary formula beginning in December of 2008. The report will include the description of each qualified property, the base full and true taxable value, the new adjusted full value of new construction and improvements, and the amount of discretionary loss of taxable value as defined in city ordinance of 100 percent, 80 percent, 60 percent, 40 percent, or 20 percent for each year of the eligible tax abatement.
The business improvement district created in this article shall have the following boundaries:
Beginning on the north right-of-way line of Third Street at its intersection with the west right-of-way line of Minnesota Avenue; then east along the north right-of-way line of Third Street to its intersection with the west right-of-way line of the alley located between Dakota Avenue and Main Avenue; then north along the west right-of-way line of the alley located between Dakota Avenue and Main Avenue to its intersection with the north right-of-way line of First Street; then east along the north right-of-way line of First Street to its intersection with the west right-of-way line of Main Avenue; then north along the west right-of-way line of Main Avenue to its intersection with the south property line of Tower Park; then east approximately 591 feet to the west right-of-way line of Phillips Avenue; then north along the west right-of-way line of Phillips Avenue to its intersection with the north right-of-way line of McClellan Street; then east along the north right-of-way line of McClellan Street to its merging point with the north right-of-way line of Falls Park Dr; then east along the north right-of-way line of Falls Park Drive to its intersection with the west right-of-way line of Weber Avenue; then south along the west right-of-way line of Weber Avenue to its intersection with the south right-of-way line of Sixth Street; then east along the south right-of-way line of Sixth Street to its intersection with the west right-of-way line of Nesmith Avenue; then south along the west right-of-way line of Nesmith Avenue to its intersection with the south right-of-way line of Seventh Street; then east along the south right-of-way line of Seventh Street to its intersection with the west right-of-way line of Franklin Avenue; then south along the west right-of-way line of Franklin Avenue to its intersection with the south right-of-way line of the former Chicago, Rock Island and Pacific Railroad; then south approximately 755 feet to an intersection with the west right-of-way line of the Burlington Northern Railroad; then southeast along the west right-of-way line of the Burlington Northern Railroad to its intersection with the south right-of-way line of 14th Street; then west along the south right-of-way line of 14th Street to its intersection with the east right-of-way line of Minnesota Avenue; then north along the east right-of-way line of Minnesota Avenue to its intersection with the north right-of-way line of Third Street being the point of beginning.
The purposes, public improvements and facilities to be included in the business improvement district are as follows:
(1) The creation and implementation of a plan for improving the general architectural design of public areas in the district area.
(2) The development of any activities or promotions of any events in the district area.
(3) Employing or contracting for personnel, including administrators, for any improvement or promotional program allowed in the law and providing for any service necessary to carry out the purposes of the law.
(4) Any other project or undertaking for the betterment of the facilities in the district area, whether the project is capital or noncapital in nature.
No real property which is exempt from taxation under SDCL Ch. 10-4 shall be assessed under this article. Specifically, industrial property along with single-family and two-family residential properties shall be exempt from assessment. Multi-family property whose sole use is residential will be assessed one-half the set amount.
*Editor’s note—Renumbered from Article VIII to Article IX by Ord. No. 60-07, § 14, adopted May 7, 2007.
Sec. 39-150. General.
When a property tax rebate is included in the city's budget, no rebate shall be paid unless the owner of eligible owner-occupied single-family dwelling property has complied with the provisions of this article.
In addition to the above requirement, no city property tax rebate shall be paid for any property for which taxes and assessments due have not been paid in full to Minnehaha County and Lincoln County treasurers on or before October 31 of the year in which they are payable.
**Editor’s note—Renumbered from Article IX to Article X by Ord. No. 60-07, § 17, adopted May 7, 2007.
Sec. 39-160. Abatement or refund of invalid, inequitable or unjust assessment.
If after application, signed by the taxpayer under oath stating the reason the assessment is invalid, inequitable or unjust, the council is satisfied beyond a doubt that the assessment of real property described in the application for abatement or refund is invalid, inequitable, or unjust, the council, if the application is filed no later than the first day of November of the fourth year after which such assessment would have been delinquent, may by resolution abate or refund all or any part thereof in excess of a valid, just, fair and equitable assessment.
ARTICLE XI. RETAIL SALES AND SERVICE TAX AND USE TAX REFUND***
***Editor’s note—Renumbered from Article X to Article XI by Ord. No. 60-07, § 20, adopted May 7, 2007.
Sec. 39-172. Definitions.
Terms used in this article mean:
(1) Capital assets means tangible and intangible personal property which is subject to depreciation or amortization under §§ 167 and 168 of the Internal Revenue Code of 1986, as amended to the date of adoption of this ordinance.
(2) Construction commencement means the date earth is first excavated for the purpose of constructing a new business facility.
(3) Department means the finance department of the city.
(4) Finance director means the finance director of the city.
(5) New business facility means a new building or structure that is part of a project that satisfies the requirements of section 39-174 and is not ineligible under the provisions of section 39-175.
(6) Person means any individual, firm, partnership, joint venture, association, limited liability company, limited liability partnership, corporation, trust, or any group or combination thereof acting as a unit.
(7) Project means the construction, equipping, and furnishing of a new business facility at a single site, and for which the commencement of construction or the ordering of equipment to be used in a new business facility occurred on or after April 11, 2005.
(8) Sales tax means the sales and service and use taxes imposed by the city pursuant to sections 39-16 and 39-16.1.
Sec. 39-173. Refund of retail sales and service tax and use tax on capital assets.
As provided in this ordinance, any person may apply for and obtain a refund or credit for sales tax paid by such person on the costs incurred in the furnishing and equipping of a new business facility that satisfies all requirements of this article. Except as provided in the last sentence of this paragraph, the refund allowed under this section pertains only to project costs incurred and paid within 36 months of the approval of the application required by section 39-176. Upon a showing of good cause, the time limits prescribed by this section may be extended by the finance director for a period not to exceed 24 months. The refund shall not apply to capital assets purchased to replace capital assets for which a refund has been claimed during such 36-month period or extended period. There is no refund if the person fails to make application with the finance director as set forth in section 39-176.
The 30-day advance application requirement found in section 39-176 shall not apply to any project for which the commencement of construction or the ordering of equipment occurs between April 11, 2005, and the effective date of this ordinance. However, all such projects shall submit an application to the finance director within 30 days of the effective date of the ordinance and receive the finance director's approval prior to receiving a refund.
Those businesses which otherwise were eligible to receive a refund of retail sales and service tax and use tax on capital assets, and missed the deadline set forth in the previous paragraph, shall be allowed to submit an application for refund of retail sales and service tax and use tax on capital assets by June 1, 2006. If such applications are received by the city finance department by June 1, 2006, they will be deemed to have been timely filed.
(1) The project includes new construction that adds at least $5,000,000.00 in taxable value to the city's property tax base, or an investment in non-realty capital assets of not less than $10,000,000.00, or if the combination of new construction and non-realty capital assets exceeds $10,000,000.00.
(2) The facility is used directly in (a) the manufacture or processing or fabricating or compounding of personal property which is intended to be sold or leased for final use consumption, or (b) data processing, hosting and related services including payroll services, financial transactions processing as those terms are defined by 2002 NAICS, or (c) research and development in the (i) social sciences, (ii) humanities, and (iii) physical, engineering, and life sciences as those terms are defined by 2002 NAICS; and
(3) The person makes application for the refund from the finance director as set forth in section 39-176.
(4) The project is not ineligible under section 39-175.
Any person desiring to claim a refund pursuant to this article shall make application to the finance director at least 30 days prior to the earlier of the construction commencement or the ordering of equipment to be used in a new business facility. The application shall be submitted on a form prescribed by the finance director. A separate application shall be submitted for each project. Upon the finance director's approval of the application, the finance director shall notify the applicant that he is eligible to submit refund claims and to receive refunds as provided in this article. Such refund claims are not assignable or transferable except as collateral or security pursuant to SDCL Chapter 57A-9.
The refund shall be 100 percent of the sales taxes paid to the city with respect to the project. The person receiving a refund shall be entitled to retain 100 percent of the amount refunded if the project remains in operation in the city for at least five years. If the project ceases operation in the city before the end of such five-year period, the city shall be entitled to repayment of all or a portion of the amount refunded, such refund being prorated based upon the time remaining in the five-year minimum term. Any amount the city is entitled to recover under this section shall constitute a debt to the city and a lien in favor of the city upon all property and rights to property whether real or personal belonging to the claimant and may be recovered in an action of the debt.
Any person who is eligible for a refund pursuant to this article shall submit a return to the department no more frequently than on or before the last day of each month and no less frequently than on or before the last day of each month following each calendar quarter. The finance director shall determine and pay 95 percent of the amount of the tax refund within 30 days of receipt of the return. Five percent of the refund shall be withheld by the department. No interest shall be paid on the refund amount.
The amounts withheld by the department in accordance with section 39-178 shall be retained until the project has been completed and the claimant has met all the conditions of this article, at which time all sums retained shall be paid to claimant.
If any claim has been fraudulently presented or supported as to any item in the claim, or if the claimant fails to meet all the conditions of this article, then the claim may be rejected in its entirety and all sums previously refunded to the claimant shall constitute a debt to the city and a lien in favor of the city upon all property and rights to property whether real or personal belonging to the claimant and may be recovered in an action of debt.
Any person aggrieved by a decision of the finance director under this ordinance may file an appeal according to the procedure set forth in the Revised Ordinances of Sioux Falls, SD, Chapter 2, Article VI, Section 2-60 et sequence of this code.
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