Property tax question (Rapid City, Spearfish, Rapid Valley: for sale, real estate, city hall)

[wyolady]

I've searched these boards looking for information on property taxes in South Dakota and have seen posts that indicate they seem to be reasonable.

How about in Rapid? Spearfish? I'm considering a move from WY where we have no state income tax (like SD) and reasonable property taxes, but our vehicle licensing fees are huge. Just paid $570 to register a new car. $570! But that's not why I'm considering a move to SD. I love the clean air, friendly people, etc.

Can anyone weigh in on specific property tax info? For example, on a $250K home on like 1/2 acre, what would you pay per year?

[uncleharley]

For the most accurate information, call the city hall in the city or village that you want to move to. Ask them what their mill rate is. Multiply the mill rate by $250,000 and you have the taxs on a piece of property that is assesed at $250,000. The actual tax can vary a little depending on when the last assessment was done and how much adjusting has been done since then, but the result should be very close.

uh

[eric#1]

I have found most people coming from Wyoming tend to see our taxes in the hills area to be comparatively high. That said most I have worked with still feel they are still reasonable especially as you have stated since our vehicle registration is so cheap. There are tons of variables such as recent property sales in a neighborhood, school district, in town, out of town, main level sq. ft., road frontage. I don't work in the Rapid area, but I do some business in Spearfish and a lot in Lead/Deadwood. If you see something for sale on line you can drop me a direct message and I will look the taxes up to help give you a feel for where they stand. From what I have seen, I would think you would most likely be a good amount over 2k and a good amount under 5k. I know that is a wide scope but it is the reality of it. To give you an idea - friend of mine owns a home recently payed 175ish just outside of Spearfish (small but nice 8 acres) pays 1800 a year. Another friend of mine has a home for sale in 150ish in town on a small city lot and pays about the same. Newer neighborhoods tend to be higher while older ones in my experience tend to be lower. A homes sale value and assessed value can be completely different and are rarely even close in established neighborhoods.
Sorry I could not be more specific, but as it sets I could do you more harm that good if I was.

[DannyBanany]

A $250K house on a 1/2 acre in Rapid City limits would probably run between $2500-4000 per year. Of course, it depends on which side of town you're on and the different tax levies. A friend of mine that lives in a home assessed at $200K on the Southside pays about $3800 per year. Another friend that lives on the Northside in a brand new $250K home pays significantly less.

Most people that move to Rapid City/Black Hills area say that property taxes are higher than where they came from. An exception here on the forum is Ashnat who comes from Omaha. She stated that taxes are pretty similar if not lower than what she paid before in Omaha. Then there's Busy who relocated here from Denver; she says they're much higher.

[Jammie]

I saw your post earlier and was going to check things out a bit, but life got in the way. There's not a lot to add cause of the good info given already, but it seems like mill rates depend on which county you live in.

It's a pretty sure bet that nearly every county in our state is in the area of 20 per 1,000 of assessed value. Keep in mind that the value we are taxed on is always lower then the sale/buying price of the house. Also, there is about a 30% reduction in real estate taxes since we voted in video lottery. That applies only if the owner is the resident.

SO, if you pay 250,000 for your house, your value that you will be taxed on will probably be around 200,000. It should put your taxes in the area of 4,000, but with the 30% cut, you could probably end up paying around 3,000.

Does that sound right to the rest of you? It doesn't sound quite right according to what Danny and Eric's friends pay so what am I missing on tax assessments?

[DeadwoodJ]

Here is last years numbers for Lawerence County, which is Spearfish and Deadwood/Lead area:

http://www.lawrence.sd.us/Documents/Mill%20Levies%20for%202007%20Real%20Property%20and %202008%20Mobile%20Home%20Taxes.pdf (broken link)

250,000 = 250 x 18.70 = 4675 (Deadwood Owner Occupied)
250,000 = 250 x 16.46 = 4115 (Spearfish Owner Occupied)

Again these are last years numbers but this should give you a rough idea of the amount you'll probably pay, like Eric said, these numbers are NOT the exact ones, each house is different

[wyolady]

for weighing in with information. It does help a lot. I knew vehicle licensing was much cheaper in SD, but it looks like property taxes make up for that. In WY, we have an assessed valuation of around $260,000 and pay about $1,650 a year. Of course, we have many vehicles so perhaps the difference would be a wash. Thanks again for the info.

[Jammie]

Wyolady, I was just wondering about what you'd said about registering your new car. If you bought a new car in So. Dak., you would have to pay a 3% tax on it, too. Is that what you're referring to?

Generally our license plates are something like 30 to 35 per year, depending on the age of the vehicle. But if you went in with a brand new 20,000 vehicle, you'd pay about the same as the 570 that you paid.

Am I confused again or did I understand you correctly?

[ashnat]

license plates went up. I just paid $50 for my new car this month. $42 for my older car. Not complaining at all, I paid $400+ in Nebraska.

I think sales tax on car purchases went up to 4%. That's what we paid on our new car in Feb, and I'm outside Rapid City limits.

Many argue with me, but IMO property taxes in SDakota are dirt CHEAP! SDakota property tax, taxes 85% of the value of the home. So if the last property assessment was $150,000 you'll pay taxes on $127,500. That's when the county assesses it, not a private assessor you use when you want to refinance or get an equity loan. The county assessed my home at $125,900, but the private assessor I hired when I wanted to refi 6 months ago assessed it at $172,500. I'm only paying taxes on $107,000, and my final number is less than $2000 this year.

My home in Omaha the county assessor valued at $94,000. Nebraska taxes 100% value of the home, my property taxes outside Omaha city limits was $2500. Would have been more if our neighborhood was annexed into city limits. Thank goodness it wasn't.

The actual COST of the home is what get's you. I had a 1400 sq foot home on a 1/4 acre lot in Omaha. Paid $97,000 for the home. The home was 14 years old, had 3 bedrooms, 2 bath. (again, prop tax $2500)

Here, I have a 2200 sq foot home on a 1/4 acre lot. I paid $150,000 for the home. My house is 30 years old, with 4 bedrooms and 2 bath. (again, prop tax about $1800)
$50,000 more in money, for 1 more bedroom, and an extra dining room, but the home is twice the age.

[DannyBanany]

Ashnat, do you live in the part of Rapid Valley that was just annexed into Rapid City? Property taxes in Rapid City limits are higher than they are in Rapid Valley. Not to mention, Rapid City sales tax is 2%. I like to buy gas in the valley whenever I can!