What is a Discretionary Assessment?
Brown County does offer discretionary assessments for new construction for commercial or industrial properties. The assessment is applied to new properties or improvement/additions to existing properties.
Discretionary Assessment for all Commercial Properties
Discretionary Assessment for all commercial properties: Any property considered to be a commercial property is eligible for discretionary assessment, unless otherwise stated. These properties are assessed with full and true value, but that value is then implemented into the tax base on in annual 20% increments over a 5-year period. Example: a structure is assessed at $100,000, but the first year is taxed at $20,000, the second year at $40,000 and so on until the 5th it is finally taxed at the full amount of $100,000. This reduction does not require an application to be submitted. Resolution R21-24.
Discretionary Assessment for Commercial Property within the Downtown Historic District
Any property considered to be commercial which is located within the district defined as the downtown historic district may receive a discretionary reduction. The property will be assessed at full value but will come on to the assessments rolls at 0% value for 5 years. Example: A new structure within the district is assessed at $100,000. The first year it will be taxed at $0. The second year it will be taxed at $0 and so on through the 5-year period. Year six, it will be removed from discretionary classification and be assessed and taxed at full value. This reduction does not require an application to be submitted. Resolution R18-24.
Discretionary Assessment for Industrial Property on Land With Industrial Zoning
Any property classified as industrial pursuant to SDCL 10-6-137(2) and is situated on property with an industrial zoning classification may receive a discretionary reduction which reduced their assessed value to 0% the first year 0% the second year and so on though the 5-year period. Year 6 it will be removed from discretionary classification and will be assessed and taxed at full value. This reduction does require an application and will need to be approved by the county commission. Resolution R19-24
Residential property Discretionary (Developer’s Discretionary)
New lots platted for residential purposes may have assessments frozen at the value of that property for the first 5 years at the value of the land the year prior to the filing of the plat. This will be in effect for all lots that are still under the ownership of the developer. Any lots within the plat transferred will be assessed at full value the first full assessment year after the date of transfer. Resolution R20-24.