A Nonresident Heir Inheriting South Dakota Property Can Skip the Local Board of Equalization Entirely

Updated September 2026

South Dakota reassesses every parcel to full and true value every year, as of a November 1 assessment date, whether or not it just changed hands. Inheriting a home doesn't add a separate reassessment on top of that. What's more useful to know as an heir, especially one who doesn't live in the county where the property sits, is that South Dakota's standard rule requiring you to appeal to your local board of equalization first has real, documented exceptions, and being a nonresident of that local jurisdiction is one of them.

Full and True Value, Then a Separate Equalization Step

Every South Dakota property is valued at full and true, meaning market, value as of November 1 each year, by the county Director of Equalization, regardless of ownership. A second, separate step then applies: the Department of Revenue calculates an annual equalization factor, targeted at 85%, to convert full and true value into taxable value. If a county is already assessing at 100% of market value, that factor is 0.85. If a county runs below the 85% target, DOR can apply a factor above 1.0 instead. A $120,000 full and true value at the standard 0.85 factor works out to $102,000 in taxable value, and that's the figure the local mill levy is applied to. Neither step is triggered or altered by an inheritance, an inherited home was already going through this process annually and continues to.

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Skipping the Local Board Doesn't Always Forfeit Your Appeal

South Dakota's general rule is strict: a taxpayer who doesn't appeal first to the Local Board of Equalization forfeits their right to appeal to the boards above it. But the state Department of Revenue's own guide names three documented exceptions where you can go straight to the County Board of Equalization instead:

You're a non-resident of the local board's jurisdiction. This includes an heir living out of state, or simply in a different township or city within South Dakota, who inherited property in a jurisdiction they don't live in and can't easily attend an in-person local hearing for.
The property sits in an unorganized township. There's no local board there to appeal to in the first place, so you go directly to the county board.
You're appealing your property's owner-occupied classification or its taxable/exempt status, rather than its value. These appeals go straight to the county board regardless of residency.

One more case changes the first step itself: if the jurisdiction has consolidated its local and county boards, there is no separate local board, and your first appeal goes to the Consolidated Board of Equalization (written appeal to the county auditor by April 7 for 2026). Your assessment notice says whether this applies to your property.

For an out-of-state heir specifically, the non-resident exception is usually the relevant one, and it means you don't have to travel back for a local hearing just to preserve your appeal rights.

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No Inheritance Tax, No Estate Tax, and Relief Programs That Don't Transfer

South Dakota voters repealed the state's inheritance tax effective July 1, 2001, and the state has no separate estate tax. Only the federal estate tax could apply, above a threshold most inherited homes never come close to. South Dakota's homeowner relief programs, the Assessment Freeze for the Elderly and Disabled, the Sales & Property Tax Refund, and the Disabled Veteran exemption among them, are each tied to the individual applicant's age, disability, income, or service record, not the property, so a new owner has to independently qualify and apply for any of them. The Assessment Freeze specifically requires 5 years of South Dakota residency and ownership, which usually rules it out for an heir in the year they first inherit, unless they already lived in or co-owned the home before that.

Frequently Asked Questions

If I skip South Dakota's local board, do I lose my right to appeal entirely?

Not necessarily. The state's own appeal guide names three exceptions, being a non-resident of the local board's jurisdiction, having property in an unorganized township, or appealing your classification or exempt status rather than the value. Any of these lets you go straight to the county board instead. And if your jurisdiction uses a Consolidated Board of Equalization, that board is your first and only board-level step before the Office of Hearing Examiners or circuit court.

Is there a South Dakota rule that reassesses a property specifically because it changed hands through inheritance?

No. Every parcel is already reassessed annually at full and true value as of November 1, regardless of ownership. The inherited home was already on that schedule and stays on it.

Is South Dakota property really taxed at 85% of value?

Not directly. The property is first assessed at full and true, market, value. A separately calculated equalization factor, targeted at 85% but adjustable per county, is then applied to that figure to reach the taxable value the mill levy is applied to.

Will I owe South Dakota inheritance or estate tax?

No. South Dakota repealed its inheritance tax effective July 1, 2001, and has no separate estate tax.

Can I immediately get South Dakota's Assessment Freeze for Elderly and Disabled on a home I just inherited?

Usually not in the year you inherit, since the program requires 5 years of South Dakota residency and ownership. An exception is if you already lived in or co-owned the home for that period before inheriting it, for example an adult child who lived with an aging parent.