In South Dakota, how is the term "assessed value" defined?

In South Dakota, the term "assessed value" is defined as "full and true value." This phrase refers to the value of real property as determined by the assessor, which is intended to reflect the property's current market value. The full and true value is essentially an estimate of what the property would sell for on the open market under normal conditions.

This definition is crucial for the application of property taxes, as local governments rely on assessed value to establish a tax base for funding services. The concept ensures a standardized approach to property valuation that aligns with state statutes and helps maintain fairness in taxation among property owners.

In contrast, other terms like "market value," "cost of replacement," and "taxable value" do not accurately encapsulate the specific definition of "assessed value" set by the state's regulations. Market value can vary and does not necessarily represent the assessed basis for tax purposes. The cost of replacement refers to the expense involved in replacing a property and can differ significantly from assessed values based on market trends. Taxable value pertains to the portion of assessed value that is subject to taxation, which is derived from the assessed value but does not define it directly. Thus, "full and true value" is the most precise and relevant term