What is the taxable value based on?

The taxable value is based on 85% of the full and true value. This means that when determining the taxable value of a property, the assessor takes the full and true value, which represents the estimated market value of the property, and then applies a percentage to arrive at the taxable value.

In South Dakota, this percentage is set at 85%, aligning with the state law that aims to fairly distribute the property tax burden while taking into account the need for revenue at local levels. The full and true value reflects what the property is worth in the current market, and applying the 85% factor ensures that the property tax assessment process is standardized across different properties, thereby promoting fairness in taxation.

Understanding this concept is crucial for appraisers and assessors as they navigate property tax assessments and ensure compliance with state regulations. The other options suggest different bases for calculating taxable value, but they do not align with the specific percentage mandated by South Dakota law.