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State of South Dakota
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NINETY-SECOND SESSION LEGISLATIVE ASSEMBLY, 2017 |
| 654Y0003 | SENATE BILL NO. 7 |
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Introduced by: Senators Cammack, Frerichs, and Tidemann and Representatives Qualm,
Bartling, Duvall, and Rhoden at the request of the Agricultural Land
Assessment Implementation and Oversight Advisory Task Force
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FOR AN ACT ENTITLED, An Act to revise the criteria for determining if property is classified
as agricultural land for property tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-31.3 be amended to read:
10-6-31.3. For tax purposes, land is agricultural land ifit meets two of the following three
criteria:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-31.3 be amended to read:
10-6-31.3. For tax purposes, land is agricultural land if
(1) In three of the previous five years, a gross income is derived from the pursuit of
agriculture as defined in subdivision (2) of this section that is at least ten percent of
the taxable valuation of the bare land assessed as agricultural property, excluding any
improvements. Furthermore, at least two thousand five hundred dollars of gross
income is annually derived from the pursuit of agriculture from the land. If there is
a crop share arrangement, the gross income from the land of both the landlord and
tenant shall be combined and used to meet this criteria;
trees, the rearing, feeding, and management of farm livestock, poultry, fish, or
nursery stock, the production of bees and apiary products, or horticulture, all for
intended profit pursuant to subdivision (1) of this section. Agricultural real estate also
includes woodland, wasteland, and pasture land, but only if the land is held and
operated in conjunction with agricultural real estate as defined and it is under the
same ownership; or
(1) In three of the previous five years, a gross income is derived from the pursuit of
agriculture from the land that is at least ten percent of the taxable valuation of the
bare land assessed as agricultural property, excluding any improvements. If there is
a crop share arrangement or cash rent agreement, the gross income from the land of
both the landlord and tenant shall be combined and used to meet this requirement.
Alternatively, at least two thousand five hundred dollars of the owner's gross income
is annually derived from the pursuit of agriculture; or
(2) The land consists of not less than twenty acres of unplatted land or is a part of a
management unit of not less than eighty acres of unplatted land. The same acreage
specifications apply to platted land, excluding land platted as a subdivision, which
is in an unincorporated area. However, the board of county commissioners may
increase the minimum acre requirement up to one hundred sixty acres.
For the purposes of this section, the term, management unit, means any parcels of land,
whether adjoining or not, under common ownership located within this state and managed and
operated as a unit for one or more of the principal uses listed in this section. No parcel of land
less than twenty acres within a management unit may be more than twenty air miles from the
nearest other parcel within the management unit. If requested by the director of equalization, the owner shall provide supporting documentation of the land contained in the management unit.
