A residential property in Sioux Falls, South Dakota has an assessed value of $240,000. The local mill levy is 15 mills. The owner qualifies for the owner-occupied classification, which applies a 100% assessment ratio (full assessed value is used). South Dakota has no real estate transfer tax. What is the owner's annual property tax bill?
Correct Answer
D) $3,600
The formula for calculating property tax is: Assessed Value × Mill Levy ÷ 1,000 = Annual Property Tax. With an assessed value of $240,000 and a mill levy of 15 mills: $240,000 × 15 ÷ 1,000 = $240,000 × 0.015 = $3,600. South Dakota has no real estate transfer tax, so no transfer tax is added to this calculation. The owner-occupied classification uses the full assessed value (100% ratio), so no adjustment is needed.
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