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 if its principal use is devoted to the raising and harvesting of crops or timber or fruit 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. 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. In addition, to be classified as agricultural land for tax purposes, the land shall meet one of the following 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 its principal use is devoted to the raising and harvesting of crops or timber or fruit 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. 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. In addition, to be classified as agricultural land for tax purposes, the land shall meet one of the following criteria:
(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 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.
An Act to revise the criteria for determining if property is classified as agricultural land for property tax purposes.
An Act to revise the criteria for determining if property is classified as agricultural land for property tax purposes.
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I certify that the attached Act originated in the
SENATE as Bill No. 7
____________________________
Secretary of the Senate ____________________________
President of the Senate
Attest:
____________________________
Secretary of the Senate
____________________________
Attest:
____________________________
Chief Clerk
Senate Bill No. 7 File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
