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Updated 2025 Tax Year

Codington County
Property Tax Guide

Everything you need to know about property taxes in Codington County, SD. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
0.50% effective rate (varies by school district and municipality within county)
1st Due
May 31
2nd Due
Oct 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Codington County property taxes fund essential local services including public schools, county government operations, emergency services, road maintenance, and various special districts. The county is located in northeastern South Dakota and includes the city of Watertown as its county seat. Property taxes are the primary funding source for these local services, with the tax burden distributed among residential, commercial, and agricultural properties based on their assessed values.

The effective property tax rate in Codington County for levy year 2024-2025 is approximately 0.50% of assessed value, though this rate varies significantly by location within the county due to different combinations of school districts, municipalities, and special taxing districts. Property owners in different areas may pay substantially different rates depending on which taxing jurisdictions serve their property, including school districts, fire districts, water districts, and municipal boundaries.

Actual tax rates can range from the base county rate to higher combined rates when multiple special districts apply to a property. Property owners should verify their specific tax rate by checking which taxing districts apply to their parcel, as this information appears on the annual property tax statement issued by the Codington County Treasurer's office.

Section 2

What Makes Up Your Tax Bill

ComponentApproximate RateDescription
County General0.15%Basic county operations, sheriff, courts, roads
School Districts0.25%Local school district operations and facilities
MunicipalVariesCity/town services (applies only within city limits)
Special DistrictsVariesFire districts, water districts, other local services
Total Effective Rate~0.50%Combined rate for levy year 2024-2025

These rates apply to the assessed value of property, which in South Dakota is typically close to market value. The exact combination of rates depends on your property's location within Codington County. Properties within city limits pay municipal taxes in addition to county and school taxes. Rural properties may be subject to fire district, water district, or other special district taxes.

Rates are set annually during the budget process and may change from year to year based on local government funding needs and property value changes. Special assessments for improvements like street paving, sewer extensions, or other infrastructure projects may result in additional taxes beyond these general rates.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Codington County, property taxes are due in two installments:

First Installment
May 31
Delinquent after Dec 10
Second Installment
Oct 31
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Codington County are additional tax bills issued when property ownership changes or new construction is completed during the tax year. These supplemental bills ensure that property taxes are properly allocated between previous and current owners, and that new construction is taxed for the portion of the year it was completed.

Supplemental taxes are most commonly triggered by: property sales or transfers mid-year, completion of new construction or major improvements, subdivision of parcels, or corrections to assessed values discovered during the tax year. The supplemental tax is calculated by determining the difference between the old assessment and new assessment, then applying the current tax rate to that difference for the remaining months of the tax year.

For example, if a new home worth $400,000 is completed in July, the supplemental tax would be calculated on the full $400,000 assessed value for the remaining 6 months of the tax year. At a 0.50% tax rate, this would result in a supplemental tax bill of approximately $1,000 ($400,000 × 0.005 × 0.5 years). Supplemental tax bills are typically mailed within 60-90 days of the triggering event and have their own due dates separate from the regular tax payment schedule.

Example Calculation

Example 1: $300,000 Home

  • Market/Assessed Value: $300,000
  • Less: Homestead Tax Credit (if qualified): -$150
  • Net Taxable Value: $299,850
  • Tax Rate: 0.50%
  • Annual Property Tax: $1,499
  • Monthly (if escrowed): $125

Example 2: $600,000 Home

  • Market/Assessed Value: $600,000
  • Less: Homestead Tax Credit (if qualified): -$150
  • Net Taxable Value: $599,850
  • Tax Rate: 0.50%
  • Annual Property Tax: $2,999
  • Monthly (if escrowed): $250

Example 3: $1,000,000 Home

  • Market/Assessed Value: $1,000,000
  • Less: Homestead Tax Credit (if qualified): -$150
  • Net Taxable Value: $999,850
  • Tax Rate: 0.50%
  • Annual Property Tax: $4,999
  • Monthly (if escrowed): $417

Note: Tax credits shown require annual application and qualification. Rates may vary by specific location within Codington County based on applicable special districts. Senior citizens and disabled veterans may qualify for additional tax credits with proper application.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Codington County require property tax escrow accounts for borrowers with less than 20% equity. The lender collects monthly property tax payments along with principal and interest, deposits these funds in an escrow account, and pays the annual property tax bill on the borrower's behalf when due in April.

Lenders typically conduct annual escrow analyses to ensure adequate funds are collected. If property taxes increase, your monthly escrow payment will be adjusted upward. If taxes decrease or the account has excess funds, you may receive a refund or see reduced monthly payments. New homeowners should expect escrow adjustments during the first few years as lenders refine their tax estimates based on actual bills rather than projections.

Property owners with escrow accounts should verify that their lender pays taxes on time, as the property owner remains ultimately responsible for timely payment even when using an escrow service. The Codington County Treasurer's office can confirm whether your taxes have been paid. If you pay taxes directly without escrow, property taxes are typically due in early April each year, with penalties and interest applying to late payments.

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Section 6

Frequently Asked Questions

Q: When are Codington County property taxes due for fiscal year 2025-2026? A: Property taxes are typically due in early April. Check with the Codington County Treasurer's office for the exact due date, as it may vary slightly from year to year.

Q: What tax credits are available and do I need to apply? A: The Homestead Tax Credit is available for qualifying owner-occupied residences and requires annual application. Additional credits may be available for seniors, disabled veterans, and disabled persons. All tax credits require application - they are not automatic.

Q: How does the Homestead Tax Credit work? A: The Homestead Tax Credit in South Dakota typically provides a modest reduction in your tax bill and may include provisions that limit assessment increases. You must apply annually with the County Auditor's office, and the property must be your primary residence.

Q: When are properties reassessed in Codington County? A: South Dakota requires annual assessment of all property. The County Equalization office reviews property values each year, with physical inspections conducted on rotating schedules or when improvements are made.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the County Board of Equalization, typically between March 1st and April 1st. Contact the Codington County Auditor's office for specific deadlines and required forms.

Q: What penalties apply to late property tax payments? A: Late payments incur penalties and interest charges. Contact the Codington County Treasurer's office for current penalty rates and payment options for delinquent taxes.

Q: Can I pay property taxes online? A: Check the Codington County Treasurer's website or call their office to verify current online payment options and any associated convenience fees.

Q: Why do property tax rates vary within Codington County? A: Different combinations of school districts, municipalities, fire districts, and other special taxing districts create varying total tax rates across different areas of the county.

Q: What happens if I don't pay property taxes? A: Unpaid property taxes become a lien on the property. After a specified delinquency period, the county may sell the property at a tax deed sale to recover unpaid taxes.

Q: How are special district taxes determined? A: Special districts (fire, water, etc.) set their own levy rates based on their service needs and budget requirements. These are added to county, school, and municipal taxes where applicable.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Tax-Rates.org — The 2024-2025 Tax Resourcemylrc.sdlegislature.gov
02
Tax Doc
Calculating the Dollars Needed to Reduce Property Taxesmylrc.sdlegislature.gov
03
Tax Doc
Property Tax | South Dakota Department of Revenuedor.sd.gov
04
Public Notices | South Dakota Press Association - Columnsouthdakota.column.us
05
South Dakota Department of Revenue: Homedor.sd.gov
06
Tax Doc
Property Tax | South Dakota Department of Revenuedor.sd.gov
07
Tax Doc
Application for Property Tax Homestead Exemptiondor.sd.gov
08
Relief Programs | South Dakota Department of Revenuedor.sd.gov
09
Tax Doc
Tax Exempt Propertymylrc.sdlegislature.gov
10
County
Exhibits and Appendices to County Revenues and ...mylrc.sdlegislature.gov
All sources verified as of 2025 Tax Year

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