869 N.W.2d 466
S.D.2015Background
- John Reints applied in January 2014 to Pennington County for a statutory prohibition on collection of real property taxes under SDCL ch. 43-31 for his single-family home.
- Reints turned 70 in March 2014, had owned and lived in the home for three years, lived there at least eight months in 2013, and had household income under $16,000 for 2013.
- The County denied the application because Reints had not yet turned 70 prior to January 1, 2014.
- The South Dakota Department of Revenue affirmed, holding the prohibition did not apply to taxes assessed prior to the applicant’s 70th year (i.e., 2013 taxes payable in 2014).
- The circuit court affirmed the Department; Reints appealed to the South Dakota Supreme Court.
Issues
| Issue | Plaintiff's Argument (Reints) | Defendant's Argument (County / Dept.) | Held |
|---|---|---|---|
| Scope of prohibition: does a granted prohibition bar collection of all previously assessed property taxes or only a specific assessment year? | A prohibition established in the base year (2014) bars collection of any real property taxes payable in 2014 regardless of assessment date. | The prohibition applies only to taxes assessed in the year the applicant is 70 (i.e., assessed while 70), not to prior-assessed taxes payable in the collection year. | Court: A statutory prohibition, once granted, restrains the county from collecting any real property taxes on the applicant’s dwelling regardless of assessment year. |
| Timing of application / effect: must application be filed before collection year or before delinquency to avoid delinquent taxes? | Application made in year applicant turns 70 should establish base year and be effective for that year. | County contends application must be tied to assessment year and filing timing means odd delinquency consequences; Department treated timing differently in other statutes. | Court: Filing before May 1 may occur while some taxes are already delinquent; this is not absurd; statutory scheme and remedies (appeal/stay) accommodate this timing. |
| Whether Reints met statutory criteria (established base year) when he filed in Jan 2014 before his 70th birthday | The base year is the year in which an applicant reaches 70, and submitting proof that one will reach 70 that year suffices. | County/Dept. treated timely applications as requiring actual attainment of age 70 to establish base year. | Court: Base year is the year in which the applicant actually reaches 70; because Reints filed before his birthday he had not yet established a base year and his application was facially defective. |
| Result / Remedy: Should denial be upheld despite earlier analytical errors by County/Dept.? | Reints sought reversal and application of prohibition to 2013-assessed taxes payable 2014. | County maintained denial proper based on timing/assessment-year reasoning; Dept. upheld denial on similar basis. | Court: Affirmed denial (result correct) but on different ground — applicant failed to establish base year at time of filing. |
Key Cases Cited
- McNeil v. Superior Siding, Inc., 771 N.W.2d 345 (S.D. 2009) (standard of review for agency factual findings and legal questions)
- Kuhle v. Lecy Chiropractic, 711 N.W.2d 244 (S.D. 2006) (administrative review standards)
- Peters v. Great W. Bank, Inc., 859 N.W.2d 618 (S.D. 2015) (statutory language given plain meaning)
- City of Rapid City v. Estes, 805 N.W.2d 714 (S.D. 2011) (statutory interpretation principles)
- Ramsey v. Lake County, 14 N.W.2d 125 (S.D. 1944) (purpose of homestead exemption)
- Speck v. Anderson, 318 N.W.2d 339 (S.D. 1982) (protective construction of homestead exemption)
- In re Schneider's Estate, 31 N.W.2d 261 (S.D. 1948) (historical respect for homestead exemptions)