This table contains Lake Poinsett Sanitary District (LPSD) property tax data for taxes payable in 2022, 2023, 2024, 2025 and 2026.  These years are in the left-hand column of the table and the data for each year are presented in the next seven (7) columns of the table, left to right.

 

A description for the data in each column is as follows:

 

Taxable/Equalized Value: SD law requires all but agricultural property to be annually assessed at full and true market value, i.e. 100% of market value.  Property is annually “equalized” to the statutory taxable value of 85% of market value using a factor issued by the SD Department of Revenue.  The data in this column is the taxable/equalized value of property within the LPSD jurisdiction, which is legally defined as 1,000 feet from the normal high-water level of the lake. The taxable/equalized value of LPSD increased about 66% between 2021 and 2025. For 2025, the base for taxes payable in 2026, the taxable/equalized value is $347,538,856.00. 

 

Change due to Reappraisal: Annually the Equalization Office in Brookings County and in Hamlin County use actual sales data to adjust the Assessed Value and thus the Taxable/Equalized Value of all non-agricultural properties in their respective counties. The data in this column are the change in taxable/equalized value in LPSD based on changes in market value, derived from arm’s length sales. The sales data are from the calendar year prior to the tax year and two years prior to the payable year, i.e. sales data from 2020 are the basis for reappraisals for 2021 taxes payable in 2022.  For 2025 taxes payable in 2026 the change in value (i.e. reappraisal), derived from sales data, for existing properties in the LPSD is $15,760,271.00.

 

Increase due to Addition, Improvements: Annually the Equalization Office in Brookings County and in Hamlin County determine the taxable/equalized value of new construction (i.e. additions) and major property improvements.  The data in this column are the change in taxable/equalized value in the LPSD because of additions and improvements, year over year.  The additions and improvements data, like the sales data, are from the calendar year prior to the tax year and two years prior to the payable year, i.e. additions improvements data from 2020 are the basis for the increase for 2021 taxes payable in 2022.  For 2025, the base for taxes payable in 2026, the increase in taxable/equalized value from additions and improvements in calendar 2024 is $6,356,789.00.

 

The 2025 taxable/equalized value, then, is the 2024 value + change due to reappraisal in 2024 + increase due to additions and improvements in 204, i.e. $347,538.856 = $325,421,796 + $15,760,271 + $6,356,789. The 2025 taxes payable in 2026 are based on the 2025 taxable value.

 

Property tax revenue from the change in taxable/equalized value due to additions and improvements is NOT subject to the 1995 state law that capped year-over-year growth in property tax revenues for all local governments except school districts to inflation, measured by the precent change in the Consumers Price Index (CPI) or 3%, whichever is less.

 

Levy: The data in this column are the taxes per $1,000 of taxable/equalized value, called the Levy. For 2025 taxes payable in 2026 the levy is .129 and is calculated considering the 1995 state law that capped property tax revenue growth year over year to the lessor of inflation or 3%.  Because the growth in taxable/equalized value in the LPSD has been greater than the lessor of inflation or 3%, tax paid per $1,000 of value (i.e. the levy) decreased from 0.169 taxes payable in 2022 to 0.129 taxes payable in 2026, a decrease of 23.6%.

 

Opt Out Levy: The data in this column are the taxes per $1,000 of taxable/equalized value or the Levy that computes LPSD’s opt-out revenues. SD state law authorizes local governments subject to the property tax revenue growth cap law to “opt out” of the growth cap law by resolution to increase property tax revenues by a specific amount for a specific number of years. An opt out resolution is subject to voter recall by petition.  LPSD Resolution 2019-5-11 set the opt out amount at $125,000 per year for 15 years. The op out revenues are building a LPSD emergency reserve fund. The opt out expires in 2033 taxes payable in 2034.  The arithmetic to calculate the op out levy is: Opt Out levy = $125,000 divided by taxable/equalized value in 1,000s. For 2025 taxes payable in 2026 the calculation is 0.359 = $125,000/$347,538.856. Because the $125,000 is fixed and the taxable/equalized value of LPSD has grown, the Opt Out Levy decreased from 0.597 taxes payable in 2022 to 0.359 taxes payable in 2026, a decrease of 39.9%.

 

The sum of the 2025 taxes payable in 2026 levy (.129) plus the Opt Out levy (.359) is .488, which appears on individual tax bills in the Sanitary Sewer District line.

 

Tax Revenue: The data in this column are LPSD’s property tax revenues for the respective years.  The revenue for each year is the sum of the application of revenue growth cap, i.e. inflation or 3% whichever is less, to the previous year’s revenue added to the previous year’s revenue, plus the revenue available from the change in taxable/equalized value because of additions and improvements, which is not subject to the revenue growth cap.  For 2025 payable in 2026 LPSD receives $44,832.51, most of which is generated by the application of the 2.90% revenue growth cap to the 2024 payable in 2025 revenues.

 

Opt Out Tax Revenue: This is the fixed $125,000 opt out amount with small year to year variations due to rounding by computer calculations.

 

Total LPSD property tax revenues are the sum of the tax revenues plus opt out tax revenues. For 2025 taxes payable in 2026 this sum is $169,598.96 ($44,832.51 + $124,766.45)