An ad valorem tax is a tax that is calculated as a percentage of the value of something—such as tangible (physical) personal property (goods in a warehouse, office furniture, computer and telephone systems, inventory, etc.).
For example, county tax assessors often place a value on a business's tangible personal property and assess an ad valorem tax on the property.
In South Dakota, ad valorem taxes, also known as property taxes, are primarily levied on real estate rather than tangible personal property. Unlike some other states, South Dakota does not generally impose a state-level ad valorem tax on tangible personal property for businesses, such as goods in a warehouse, office furniture, or computer systems. Property taxes in South Dakota are administered at the local county level, and the revenue is used to fund local services such as schools, roads, and public safety. The assessed value of real property is determined by the county tax assessor, and the tax rate is set by local taxing authorities. It's important for businesses and property owners in South Dakota to be aware of local property tax deadlines and exemptions that may apply to them. For specific assessments and tax obligations, businesses should consult with a local attorney or the county tax assessor's office.