SB 142 addresses South Dakota property taxes
February 6, 2017
A bill has been introduced to the South Dakota state legislature calling for the assessment and taxation of agricultural land to be based on its actual use, not its productivity value, as has been the case since 2010. (Click here for an explanation of productivity value).
The bill was first read in the Senate on Jan. 31 and was referred to the Senate Taxation Committee. It was sponsored by Sen. Ryan Maher (R), Sen. Thomas Nelson (R), Sen. Lance Russell (R), Rep. Drew Dennert (R), Rep. Thomas Brunner (R)
Senator Lance Russell said he anticipates a vote on the bill Wednesday, Feb. 8 after 10 a.m.
The bill reads:
FOR AN ACT ENTITLED, An Act to provide for the assessment and taxation of agricultural land based on its actual use.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-33.32 be amended to read:
10-6-33.32. Agricultural land shall be divided by the director of equalization into categories, including cropland and noncropland. The categories shall reflect the actual use of the agricultural land by the owner or operator of the land. Each category shall be divided into classes based on soil classification standards developed by the United States Department of Agriculture Natural Resources Conservation Service.
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If the director of equalization has not divided the land into a category based on its actual use, the owner or operator of the land may request the director of equalization before August first to change the category assigned to the land. The director shall act upon the request within sixty days of the date of the request. An aggrieved person may appeal the decision of the director pursuant to chapter 1-26D.
Beginning on July 1, 2018, any person who has land categorized as noncropland andchanges the use of the land to cropland or another use shall notify the director of equalization by August first. Beginning on July 1, 2018, any person who has land categorized as cropland and changes the use of the land to noncropland or another use shall notify the director of equalization by August first.
Click here to read an article from our fall Homeland about property taxes in South Dakota and surrounding states.