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Updated 2025 Tax Year

Potter County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Approximately 0.80% effective rate (varies by taxing district - school, fire, water districts add to base county levy)
Exemptions
4+ Available
Section 1

How Property Tax Works

Potter County, South Dakota operates under the state's property tax system to fund essential local services including schools, roads, law enforcement, and county operations. Property taxes in Potter County are calculated based on the assessed value of real property, with an effective tax rate of approximately 0.80% for the 2025 tax year. This rate is competitive within South Dakota, where the statewide average hovers around 1%.

It's important to understand that actual tax rates vary significantly by location within Potter County due to special taxing districts. Properties may be subject to additional levies for school districts, fire districts, water districts, and other special assessments beyond the base county levy. The total property tax bill reflects the combined rates of all applicable taxing jurisdictions where the property is located.

Potter County benefits from South Dakota's relatively taxpayer-friendly property tax environment, with various tax credits available to qualifying property owners. However, most credits require annual application and are not automatically applied to tax bills.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General~0.35%Basic county operations, roads, law enforcement
School District~0.35%Local school funding (varies by district)
Special Districts~0.10%Fire, water, sewer districts (location dependent)
Total Base Rate~0.80%Combined rate for FY 2025-2026

Note: These rates apply to the 2025-2026 levy year and represent typical combinations. Actual rates vary by specific location within Potter County due to different school districts and special taxing districts. The maximum allowable mill levy in Potter County is $5.544 per $1,000 of assessed value. Properties in different townships or municipalities may have additional or different special district assessments.

Section 3

When Are Property Taxes Due?

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

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 Potter County are triggered by changes in property ownership, new construction, or improvements that increase assessed value during the tax year. When these events occur, the county assessor calculates additional tax based on the increased value for the remaining portion of the tax year.

For example, if you complete a $50,000 home addition in January and the property hasn't been reassessed since the previous year, you may receive a supplemental tax bill. The calculation takes the increased assessed value ($50,000 × assessment ratio), multiplies it by the current tax rate (approximately 0.80%), and prorates it for the months remaining in the tax year. A $50,000 improvement completed in January would generate approximately $400 in supplemental taxes for that year.

Supplemental tax bills are typically issued within 60 days of the assessment and become due 30 days after issuance, separate from regular property tax payment schedules.

Example Calculation

Example 1 - $300,000 Home:

  • Market Value: $300,000
  • Assessed Value: $300,000 (100% in SD)
  • Less: Homestead Credit: -$4,000 (if qualified)
  • Net Taxable Value: $296,000
  • Annual Tax: $296,000 × 0.80% = $2,368
  • Monthly Escrow: $197

Example 2 - $600,000 Home:

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Homestead Credit: -$4,000 (if qualified)
  • Net Taxable Value: $596,000
  • Annual Tax: $596,000 × 0.80% = $4,768
  • Monthly Escrow: $397

Example 3 - $1,000,000 Home:

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Homestead Credit: -$4,000 (if qualified)
  • Net Taxable Value: $996,000
  • Annual Tax: $996,000 × 0.80% = $7,968
  • Monthly Escrow: $664

Note: Credits shown require annual application. Actual rates may vary based on special district locations within Potter County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Potter County require borrowers to establish escrow accounts for property tax payments. Your lender collects monthly payments equal to 1/12th of your annual property tax bill, plus insurance premiums, and holds these funds to pay taxes when due.

Potter County property taxes are typically due on April 15 and October 15 each year, with lenders usually paying slightly before these deadlines. Your lender will receive tax bills directly from the County Treasurer and handle payments automatically. However, it's important to verify that payments are made correctly and on time, as you remain ultimately responsible for tax obligations.

If you pay taxes directly (without escrow), you can make payments online through the Potter County website, by mail, or in person at the County Treasurer's office. The county accepts checks, money orders, and electronic payments for property taxes.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Potter County property taxes due for FY 2025-2026? A: Property taxes are typically due April 15 and October 15 each year. Contact the Potter County Treasurer's office for exact dates, as they may vary slightly.

Q: What tax credits are available and how do I apply? A: The primary credit is the Homestead Exemption, which provides up to $4,000 in assessed value reduction for owner-occupied homes. You must apply annually with the County Assessor's office. Senior and disabled veteran credits may also be available with proper application and documentation.

Q: How does the Homestead credit work? A: The Homestead credit reduces your assessed value by up to $4,000 annually for owner-occupied properties. This is a credit that reduces your tax bill, not an exemption. You must file an application with the County Assessor each year to maintain eligibility.

Q: When are properties reassessed in Potter County? A: South Dakota requires property reassessment every three years, though counties may assess more frequently. Contact the County Assessor's office for your property's next scheduled assessment date.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Potter County Board of Equalization, typically between April 1 and May 1. You'll need comparable property evidence and documentation supporting your claim that the assessed value exceeds fair market value.

Q: What are the penalties for late property tax payments? A: Late payments incur penalties and interest charges. Contact the County Treasurer's office for current penalty rates and specific calculation methods.

Q: Can I pay property taxes online? A: Yes, Potter County typically offers online payment options through their official website. Contact the County Treasurer's office for available electronic payment methods and any associated fees.

Q: How do special district taxes affect my bill? A: Properties within fire districts, school districts, or other special taxing districts pay additional levies beyond the base county rate. Your location within Potter County determines which special districts apply to your property.

Q: What if I disagree with special district assessments? A: Special district assessments can be appealed separately from regular property taxes. Contact the specific district office (fire, school, etc.) for their appeal procedures and deadlines.

Q: Are there property tax relief programs for seniors or disabled residents? A: South Dakota offers various property tax relief programs for qualifying seniors and disabled residents. Applications are required annually and must be filed with the County Assessor's office by specified deadlines. Contact the assessor for current program details and eligibility requirements.

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