Implementation of Discretionary Formula

RESOLUTION 22-17

RESOLUTION REGARDING THE IMPLEMENTATION OF DISCRETIONARY FORMULA

WHEREAS, The City of Wall adopted a resolution on the 8th day of October 2020 and the City Council has chosen to adopt a change to that resolution; therefore Resolution 20-13 is hereby repealed and replaced with this resolution; and

WHEREAS, SDCL 10-6-35.2 authorizes the Board of County Commissioners, at its discretion, to adopt any formula for assessment of specifically classified struc­tures; and

WHEREAS, the Pennington County Commission has chosen to not adopt a resolution approving a discretionary formula; and

WHEREAS, SDCL 10-6-35.4 permits the governing body of any municipality to adopt any or all property classifications defined in 10-6-35.2 which are not adopt­ed by the Board of County Commissioners; and

WHEREAS, the City of Wall chooses to adopt the discretionary formula for the development of the Industrial Park only and no other areas located in the city limits; and

WHEREAS, SDCL 10-6-35.2 states the formula may include for any or all of the five tax years following construction all, any portion or none of the assessed val­uation for tax purposes;

FURTHER RESOLVED, that any structure classified pursuant to this Resolution shall, following construction, initially be valued for taxation purposes in the usual manner, and that value shall be referred to in this Resolution as the “Pre-Adjustment Value”; and be it

FURTHER RESOLVED, that the assessed value to be used for tax purposes of any structure classified pursuant to this Resolution shall, following construction, be calculated as follows:

• For the first tax year following construction, 0% of the Pre-Adjustment Value.
• For the second tax year the following construction, 0% of the Pre-Adjustment Value.
• For the third tax year following construction, 0% of the Pre-Adjustment Value.
• For the fourth tax year following construction, 0% of the Pre-Adjustment Value.
• For the fifth tax year following construction, 0% of the Pre-Adjustment Value.

and be it

FURTHER RESOLVED, that the City Council may, if requested by the owner of any of the above described property, not apply the above formula, in which case the full assessment shall be made without application of the formula.  In waiving this formula for the structure of one owner, the City Council is not prohibited from applying the formula for subsequent new structures by that owner: and be it

FURTHER RESOLVED, that for purpose of this Resolution, the assessed valuation during any of the five years may not be less than the assessed valuation of the property year preceding the first year of the tax years following construction; and be it

FURTHER RESOLVED, that any structure that is partially constructed on the assessment date may be valued for tax purposes pursuant to this Resolution and the valuation may not be less than the assessed valuation of the property in the year preceding the beginning of construction; and be it

FUTHER RESOLVED, that following the five-year period under this section, the property shall be assessed at the same percentage as is all other property for tax purposes.

Approved this 3rd day of November 2022