Changes in Assessed Value

Equalization Department - Changes in Assessed Value

Property assessments may, but do not always, change from year to year, dependent upon a variety or combination of reasons. The most common reasons that property assessments change are:
  1. New property is added, existing property is subtracted, or existing property is remodeled or updated.
  2. Physical deterioration or some other form of depreciation diminishes property value.
  3. Assessed values are adjusted up or down to reflect a changing real estate market.
  4. An error causing the previous assessment to be inaccurate was discovered.
  5. An adjustment is made to a property assessment to cause it to be more similar to the assessments of similar properties.
All properties do not change in value an equal amount every year. Assessed values can be adjusted county-wide, by neighborhood, by property type, or by individual property as needed. The goal of changing property assessments is to assess all property at market value, not to change property assessments an equal amount every year.

A change in a property assessment does not result in an equal change in property taxes. Too many other factors are involved in the calculation of property taxes. An increase in the budgetary needs of the local tax districts will result in an increase in property taxes, without an increase in property assessments. An equal, county-wide increase in property assessments without an increase in the budgets of tax districts will result in a reduction of the tax levy and no change to property taxes. This process is complicated by the taxable percentage of assessments determined annually by the South Dakota Department of Revenue and Regulation and the budget cap placed upon tax districts by South Dakota statute.