State of South Dakota
|
SEVENTY-THIRD
SESSION
LEGISLATIVE ASSEMBLY, 1998 |
418B0293 |
HOUSE BILL
NO.
1233
|
Introduced by: Representatives Jorgensen, Apa, Barker, Brown (Gary), Brown (Richard), Cutler, Fiegen, Jaspers, Kazmerzak, Koskan, McNenny, Moore, Napoli, Peterson (Bill), and Waltman and Senators Dunn (Jim), Brosz, Brown (Arnold), Daugaard, Everist, Flowers, Frederick, Lange, Olson, Paisley, and Shoener |
FOR AN ACT ENTITLED, An Act
to repeal certain provisions regarding the classification of
agricultural land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-58 be repealed.
10-6-58.
Any agricultural land, as defined in
§
10-6-31.3, which sells for more than one
hundred fifty percent of its agricultural income value is hereby classified for purposes of ad
valorem taxation. The agricultural income value shall be determined pursuant to
§
10-6-62.
Section 2. That § 10-6-59 be repealed.
10-6-59.
Any land which is classified pursuant to
§
10-6-58 shall remain so classified for
a minimum of five years. Five years after such land is so classified, such land may be
reclassified as agricultural if the land remains in agricultural use during the five year period and
if the owner of the land submits an annual application to the director of equalization. The
application shall include verified documentation that the land has been in agricultural use during
such year. If the land meets the criteria set forth in
§
10-6-31.3, has been in agricultural use for
Section 3. That § 10-6-60 be repealed.
10-6-60.
Land classified pursuant to
§
10-6-58 shall be valued for ad valorem tax purposes
at the price for which such land sold multiplied times the level of assessment for agricultural
land within the county. The value of such land shall be increased or decreased each year by the
same percentage that the average per acre value of agricultural land increases or decreases.
Section 4. That § 10-6-61 be repealed.
10-6-61.
Land classified pursuant to
§
10-6-58 shall be taxed as agricultural land.
Section 5. That § 10-6-62 be repealed.
10-6-62.
For the purposes of
§
10-6-58, the agricultural income value shall be determined
using capitalized actual annual cash rent. The actual annual cash rent is the actual annual cash
rent, excluding the actual agricultural land per acre tax on such land, determined through an
analysis of actual arm's length rental agreements collected within the county in the year prior
to the year for which the income value is being determined, for comparable agricultural land
used for agricultural purposes and located in the vicinity, if practicable, of the land for which
an agricultural income value is being determined. The annual cash rent shall be capitalized at
eight percent.
Section 6. That § 10-6-63 be repealed.
10-6-63.
The secretary of revenue shall enter into a contract for the collection of cash rent
information by county. The secretary of revenue shall promulgate rules pursuant to chapter
1-26:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-58 be repealed.
Section 2. That § 10-6-59 be repealed.
five years and the application requirement in this section is complied with, the director of equalization may reclassify such land as agricultural and value such land in the same manner as other agricultural land.
Section 3. That § 10-6-60 be repealed.
Section 4. That § 10-6-61 be repealed.
Section 5. That § 10-6-62 be repealed.
Section 6. That § 10-6-63 be repealed.
(1)
To collect and analyze cash rent information;
(2)
To define comparable land pursuant to
§
10-6-64; and
(3)
Such other rules as may be necessary to administer
§
§
10-6-58 to 10-6-67, inclusive.
Cash rent information shall be adjusted by soil survey statistics if available.
Section 7. That § 10-6-64 be repealed.
10-6-64.
For the purpose of valuing agricultural land, if there are less than fifteen sales of
agricultural land within a county, the director of equalization shall use sales of agricultural land
within the county from previous years or sales of comparable agricultural land within adjoining
counties. No sale of agricultural land from previous years or adjoining counties may be used if
such sale would have been classified pursuant to
§
10-6-58 had
§
10-6-58 been in effect when
such sale occurred.
Section 8. That § 10-6-65 be repealed.
10-6-65.
No sale of land may be used to establish the 1994 assessed value for agricultural
land if such land would have been classified pursuant to
§
10-6-58 had
§
10-6-58 been in effect
when such sale occurred.
Section 7. That § 10-6-64 be repealed.
Section 8. That § 10-6-65 be repealed.