The special meeting of the Woonsocket City Council was called to order by Mayor Richard Reider at 6:00 p.m., Friday, October 28, 2022, with the following members present: Arin Boschee, Joel Rassel, Darin Kilcoin, Brandon Goergen and John Baysinger. Derek Foos attended the meeting via a conference call. Finance Officer Tara Weber was also present.

Motion by Goergen, seconded by Baysinger, to approve the agenda. Motion carried.

Discussion was held on implementing a discretionary formula for a property tax break. Sanborn County had in the past had a resolution for a county wide tax break for new construction, but in 2022 the state changed how the formulas had to be written. Sanborn County removed the tax break, but a municipality has the power to implement their own discretionary formula for properties located inside the city limits. Motion by Goergen, seconded by Rassel to approve Resolution 2022-1 Discretionary Formula for the City of Woonsocket.  Roll call vote was taken Darin Kilcoin – yes, Arin Boschee – yes, John Baysinger – yes, Brandon Goergen – yes, Joel Rassel – yes, Derek Foos – yes. Motion carried.

Resolution 2022-1

City of Woonsocket

Discretionary Formula

WHEREAS, the City of Woonsocket, County of Sanborn, State of South Dakota has deemed it in the best interest of the City to adopt a Resolution implementing a Discretionary Formula for the reduced taxation of any new commercial, industrial, or residential structure, or addition to an existing structure pursuant to SDCL 10-6-137.

NOW, THEREFORE, BE IT RESOLVED, that the properties shall be, and hereby are, specifically classified for the purpose of taxation pursuant to SDCL § 10-6-137 (1-8):

Any new commercial, industrial, or residential structure, or addition to an existing structure. (SDCL § 10-6-137(1-8);

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 10-6-137 (5), (6), and (7) be calculated at a no more than twenty-five percent in the first or second year, no more than fifty percent in the third or fourth year, no more than seventy-five percent in the fifth or sixth year, and one hundred percent in the seventh year; and be it

FURTHER RESOLVED, that the assessed value to be used for tax purposes of any structure classified pursuant to 10-6-137 (1),(2), (3),(4), and (8) and 10-6-144 be calculated at a no more than twenty percent in the first year, no more than forty percent in the second year, no more than sixty percent in the third year, no more than eighty percent in the fourth year and one hundred percent in the fifth year; 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 the specified percentage of Pre-Adjustment Value as defined herein.

FURTHER RESOLVED, that for the immediate preservation of support of the City of Woonsocket that this resolution will be effective immediately upon passage. 

Passed this 28th day of October 2022.

Richard Reider

Mayor

ATTEST:

Tara Weber

Finance Officer

SEAL

Structure Types Eligible for a Discretionary Formula 

Affordable Housing (SDCL 10-6-137(6)) Building Requirements: Four or more new units; monthly rental rate at or below the calculated rent for South Dakota’s sixty percent area median income set annually by the SD Housing Development Authority; for a minimum of ten years following the date of first occupancy. For more information on the rental rate, call 605-773-3181. Minimum Value for Eligibility: $30,000 Length of Formula: Seven years Maximum Formula: 25-25-50-50-75-75-100 Nonresidential 

Agricultural (SDCL 10-6-137(3)) Building Requirements: New structure or addition Minimum Value for Eligibility: $10,000 Length of Formula: Five years 

Commercial (SDCL 10-6-137(4)) Building Requirements: New structure or addition. Minimum Value for Eligibility: $30,000 Length of Formula: Five years 

Commercial, Industrial, or Agricultural (SDCL 10-6-137(8)) Building Requirements: Reconstruction or renovation. Minimum Value for Eligibility: $10,000 Length of Formula: Five years 

Commercial Residential (SDCL 10-6-137(5)) Building Requirements: New structure or addition (four or more units). Minimum Value for Eligibility: $30,000 Length of Formula: Seven years Maximum Formula: 25-25-50-50-75-75-100 

Developer Lots (SDCL 10-6-144) Building Requirements: Land only. Minimum Value for Eligibility: N/A Length of Formula: Five years 

Industrial (SDCL 10-6-137(2)) Building Requirements: New structure or addition. Minimum Value for Eligibility: $30,000 Length of Formula: Five years 

Industrial & Commercial (SDCL 10-6-137(1)) Building Requirements: New structure, addition, renovation, or reconstruction. Minimum Value for Eligibility: $30,000 Length of Formula: Five years

Residential within a Redevelopment Neighborhood (SDCL 10-6-137(7)) Building Requirements: New structure, addition, or renovation in a redevelopment neighborhood (SDCL 11-7-2 and SDCL 11-7-3). In order to improve the quality of housing, all real property located within the Corporate limits of the City of Woonsocket, South Dakota shall qualify as property located in a redevelopment neighborhood. Minimum Value for Eligibility: $5,000 Length of Formula: Seven years Maximum Formula: 25-25-50-50-75-75-100 

With no further business to be discussed, motion by Boschee, seconded by Baysinger, to adjourn the meeting. The meeting was adjourned at 6:15 p.m.

Richard Reider, 

Mayor

(SEAL):

Tara Weber

Finance Officer

Published once on November 3, 2022, at the total approximate cost of $64.25 and may be viewed free of charge at www.sdpublicnotices.com.