The South Dakota municipal band tax is a dedicated property tax of up to 0.15 mills that a city can levy under SDCL Chapter 9-38 to fund a local band, but only after voters approve it through a petition and ballot process. One mill equals one dollar per $1,000 of taxable value, so the cap works out to fifteen cents per $1,000.
What 0.15 Mills Costs a Homeowner
SDCL 9-38-107 sets the ceiling at 0.15 mills. A city council can set the rate lower in any given year, but it cannot go above the cap without a change in statute. For a property with a taxable value of $200,000, the maximum annual band tax is $30. For a home taxed at $150,000, the cap produces $22.50 per year.
The number on your tax statement already reflects South Dakota’s equalization rule. The state assesses property at full market value and then equalizes it to 85 percent for tax purposes.1South Dakota Department of Revenue. Property Tax So if your home would sell for $250,000, your taxable value is roughly $212,500. Multiply that by 0.00015 and the band tax comes out to about $31.88 per year at the maximum rate.
How a City Gets Authority to Levy It
A city council cannot impose this tax on its own. Chapter 9-38 requires a citizen petition and a public vote first.2Justia. South Dakota Code Title 9 Chapter 38 – Municipal Parks and Recreational Facilities The petition goes to the municipal finance officer and must carry signatures from at least five percent of the voters who cast ballots in the most recent municipal election.
Once the finance officer verifies the signatures, the governing body places the question on the ballot at the next election. The ballot asks voters whether they favor a tax of up to 0.15 mills to support a city band. A simple majority in favor authorizes the levy. If the measure fails, the city cannot impose the tax, though supporters can try again at a future election with a new petition.
What the Band Fund Pays For
Revenue from the levy flows into a restricted account, usually called the band fund. The money is earmarked and cannot be redirected to unrelated municipal expenses. Allowable spending covers paying band members for their performances, buying and repairing instruments, purchasing sheet music, and maintaining uniforms and other equipment the band needs to operate.
The governing body keeps oversight of the fund but can delegate day-to-day management to a band committee.
How Voters Can End the Tax
The same process that creates the levy can end it. Voters who want to eliminate the band tax file a rescission petition with the same five-percent signature requirement used to establish it.2Justia. South Dakota Code Title 9 Chapter 38 – Municipal Parks and Recreational Facilities The petition triggers a new election, and a majority vote against the tax ends the city’s authority to collect it.
Once results are certified, the levy stops. Any money already collected and sitting in the band fund doesn’t disappear, but the city can no longer add to it through future levies.
Cities Can Also Pay for Concerts Without This Tax
If you’re trying to figure out whether every band concert in a South Dakota park means your property tax went up, the answer is no. SDCL 9-38-108 gives every municipality blanket authority to spend general funds on free public concerts without any special election or petition.3South Dakota Legislature. South Dakota Code 9-38-108 – Appropriations for Free Musical Concerts A city that just wants to hire a band for a few summer shows can budget the expense out of its general fund. The 0.15 mill levy comes into play when a community wants a permanent, dedicated funding stream that doesn’t compete with roads, police, and other general-fund priorities each year.