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Table of Contents:
Introduction
Who may receive a sales tax
refund?
Who may receive a
property tax refund?
A special note to widows
and widowers
A Closer Look
The Application
Introduction
The Tax Refund Program is a method of returning to
senior and disabled citizens some of the dollars they pay each year in
sales and property taxes. The program has been in effect since 1974 and
during that period has returned over $27 million to South Dakotans.
Who may
receive a sales tax refund?
A sales tax refund is not intended for everyone. If,
however, you can answer "yes" to all of the following questions, it is
intended for you.
- Were you a South Dakota resident during all of 2002?
- Were you 65 on or before January 1, 2002,
or disabled at any time during 2002?
- Do you live alone and have a yearly income under
$9,750 or live in a household whose members' combined income is under
$12,750?
If you answered "yes" to all of these questions, you are
eligible for a sales tax refund. You may also be eligible for a property
tax refund.
Who
may receive a property tax refund?
To receive a property tax refund on your home, you must
meet the age or disability and income requirements listed under the sales
tax section above. In addition, you must also be able to answer "yes" to
one of the following questions:
- Have you owned the house you are now living in for at
least three years?
- If you have owned your house for fewer than three
years, have you been a resident of South Dakota for five years or more?
If you answered "yes" to either of the last two
questions and you meet the age or disability and income requirements, you
are eligible for a property tax refund. Although you may not receive both
a sales and property tax refund, include the information for both refunds
when you make your application. We will calculate the refund for each tax
and pay you the amount which is greater. Be sure to include a copy of your
2002 real estate tax notice.
A
special note to widows and widowers:
If you are a widow or widower, you may still qualify for
a property tax refund even if you don't meet any of the requirements
previously listed. To do so, however, you must be able to answer "yes" to
all of the following questions:
- Did your spouse receive a property tax refund on your
home in the year before he/she died?
- Have you continued to live in the same house?
- Have you remained a widow or widower?
If you answered "yes" to all of these questions, it is
likely that you are eligible for a property tax refund. Please contact the
Tax Refund Office, 445 E. Capitol Avenue, Pierre, South Dakota,
57501-3100.
A Closer Look
What do we consider "income"?
One of the limitations on the Tax Refund Program is
income. If you lived alone and your income is over $9,750 or if you live
in a household that has a combined income of over $12,750, you may not
participate in the Tax Refund Program. Consequently, when you apply for
this program, you must show your total yearly income.
The following list will illustrate the types of items
considered "income" in the Tax Refund Program:
- Adjusted gross income shown on your IRS tax return
- Social Security Benefits
- SSI payments
- V.A. benefits
- Title 19 payments
- Railroad retirement
- All pensions and annuities
- All interest on savings, bonds, CD's
- Dividends for stocks
- Excluded interest and dividends
- Medicare premiums
- QMB payments
- Wages, salaries, tips
- Self-employment income
- Payments from the sale of land, a farm or home
- Crop shares
- Alimony
- Income from rents
- Worker's compensation
- Loss-of-time insurance
- Support payments
- Cash
- Capital gains excluded from your adjusted income
- Green thumb wages
- Trust income
The following list illustrates items that are not
considered income:
- Energy assistance payments
- Gifts from non-government sources such as relatives
and friends
- Food stamps or surplus food
- Other non-cash goods received from government
agencies
- Medicare or Medicaid benefits
- Money received as damages due to personal injury
- Insurance payments for medical expenses
- Interest accumulations or insurance policies
- Foster Grandparent income
In addition, you may also subtract a portion of your
real estate taxes or rent from your income.
What is meant by a "household"?
A household is two or more people living in the same
home and sharing the same facilities. The term "household" is important
for two reasons:
- If you are part of a household, the combined income
of all the people living together is used to judge your eligibility
for the Tax Refund Program (roomers, tenants, or lessees are not
included). If you live in a nursing home or group home, you may apply
as an individual only if you have your own central facilities.
Consequently, most people living in such homes do not qualify.
- Only one member of a household can apply for a tax
refund. If two or more members qualify, they must decide among
themselves which one will make the application. If they cannot agree,
they should submit the problem to the Secretary of Revenue, who will
make a binding decision.
How to prove your
age:
You will need to prove your age if you are basing your
application on age (65 or over), or if you are applying for the first
time. A copy of any of the following documents will be accepted as proof
of age:
- Medicare card
- Birth certificate
- Baptismal certificate
- Driver's license
You had to be 65 years of age or older on or before
January 1, 2002.
Note: If you filed an application for the Tax
Refund Program last year and submitted proof of age, you are not
required to do so with this application.
How to prove
residency:
Sales tax refunds require one full year and property
tax refunds require five years of residency if you owned your home for
fewer than three years. If you are asked to prove residency, we will
consider items such as your driver's license, voter's registration, real
estate tax receipts, or local utility bills.
Who do we
consider disabled?
Disabled citizens who meet residency and income
requirements may also receive sales and property tax refunds, regardless
of their age. To receive a tax refund based on disability, you must have
been qualified to receive Social Security Disability benefits or
Supplemental Security Disability benefits during some part of 2002.
In the case of a Veteran's Administration disability, your disability
must be 60% or greater.
Since disabilities are sometimes temporary, you
will be required to send us a photocopy of your Medicare card or Social
Security Certificate of Award, each time you apply for a tax refund.
The Application
How to apply:
To apply, complete an application and return it to the
Tax Refund Office, 445 E Capitol Avenue, Pierre, South Dakota
57501-3100. Application forms are available at your county treasurer's
office, senior citizen's centers, and from the Tax Refund Office.
If you have a problem completing the application form,
you may ask for assistance from your county treasurer, who is designated
by law to assist you. You may also contact your senior citizens center,
community action program, or write to us at the Tax Refund Office in
Pierre.
When to apply:
Applications for the Tax Refund program must be made
prior to July 1, 2003. Applications will be
processed in the order in which they are received. Therefore, we urge
you to file your application as early as possible. You may expect to
receive your refund approximately September 1.
Application
State (SDCL 20-13) and federal (Title VI of the
Civil Rights Act of 1964, the Rehabilitation Act of 1973 as amended, and
the Americans with Disabilities Act of 1990) laws require that the
Department of Revenue provides services to all persons without regard to
race, color, creed, religion, sex, disability, ancestry, or national
origin.
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