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CHAPTER 10-6

ANNUAL ASSESSMENT OF PROPERTY

10-6-1    Definition of terms.

10-6-1.1    Mill levy defined--Substitution.

10-6-1.2    One mill defined--Substitution.

10-6-1.3    "Fair market value" and "full and true value" defined.

10-6-1.4    "Arms-length transaction" defined.

10-6-2    Period during which assessment made--Date of assessment.

10-6-2.1    10-6-2.1, 10-6-2.2. Repealed by SL 1992, ch 80, §§ 30, 31.

10-6-3    10-6-3. Repealed by SL 2000, ch 42, § 1.

10-6-3.1    Assessment date for leased school and endowment lands--Valuation date.

10-6-4    Information as to land becoming taxable for first time--Transmittal to county officials.

10-6-5    10-6-5. Repealed by SL 1992, ch 80, § 33.

10-6-6    10-6-6. Repealed by SL 2000, ch 42, § 2.

10-6-7    10-6-7. Repealed by SL 1992, ch 80, § 34.

10-6-8    Statement of personal property required of taxpayers--Property and information to be included.

10-6-9    10-6-9. Repealed by SL 2000, ch 42, § 3.

10-6-10    Statement forms to be furnished by county commissioners--Affidavit requirements.

10-6-11    10-6-11 to 10-6-16. Repealed by SL 1992, ch 80, §§ 37 to 42.

10-6-17    10-6-17. Repealed by SL 2000, ch 42, § 4.

10-6-18    10-6-18. Repealed by SL 1982, ch 86, § 3.

10-6-19    10-6-19. Repealed by SL 1992, ch 80, § 43.

10-6-20    Penalty for intentional evasion, deceit or failure to list property.

10-6-21    False or fraudulent property statement--Intentional failure or refusal to deliver tax list--Conversion of property to evade tax--Misdemeanor.

10-6-22    Prosecution of tax evaders--Disposition of fines.

10-6-23    10-6-23, 10-6-24. Repealed by SL 1992, ch 80, §§ 45, 46.

10-6-25    Examination of property by director or deputy--Inspection of records--Administration of oaths.

10-6-25.1    10-6-25.1, 10-6-25.2. Repealed by SL 2000, ch 42, §§ 6, 7.

10-6-26    10-6-26, 10-6-27. Repealed by SL 1982, ch 86, §§ 5, 6.

10-6-28    10-6-28. Repealed by SL 1992, ch 80, § 47.

10-6-29    10-6-29. Repealed by SL 2000, ch 42, § 8.

10-6-30    10-6-30. Repealed by SL 1992, ch 80, § 48.

10-6-31    Classification of property--Notation by director of equalization.

10-6-31.1    Agricultural land classified and taxed without regard to zoning.

10-6-31.2    Leased school lands classified separately.

10-6-31.3    Criteria for classification of land as agricultural.

10-6-31.4    Property tax freeze authorized for agricultural property of beginning farmer.

10-6-31.5    Criteria for qualifying for tax freeze on agricultural property of beginning farmer.

10-6-31.6    State-owned public shooting area or game production area assessed and taxed as agricultural land.

10-6-31.7    Classification of certain agricultural land as riparian buffer strip--County board authorization to treat certain land as buffer strip.

10-6-31.8    Criteria for classification of agricultural land as riparian buffer strip.

10-6-31.9    Penalty for misrepresentation of agricultural land as qualifying as riparian buffer strip.

10-6-32    10-6-32. Repealed by SL 1995, ch 55.

10-6-33    Basis for determining valuation for tax purposes--Forced sale value not to be used--Cost, market and income approaches to appraisal considered.

10-6-33.1    10-6-33.1. Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.

10-6-33.2    Determination of capacity to produce agricultural products--Sources of information.

10-6-33.3    Property not used for agriculture separately assessed.

10-6-33.4    10-6-33.4. Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.

10-6-33.5    Assessment, valuation, equalization, and taxation of school and endowment lands.

10-6-33.6    10-6-33.6. Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.

10-6-33.7    Classification of agricultural land in each county--Basis for soil valuation.

10-6-33.8    Minimum and maximum median sales to assessment ratio.

10-6-33.9    Maximum coefficient of dispersion--Necessity for certificate of compliance.

10-6-33.10    10-6-33.10. Repealed by SL 1995, ch 68, § 64.

10-6-33.11    10-6-33.11. Repealed by SL 2000, ch 42, § 9.

10-6-33.12    Distinction between agricultural and nonagricultural real property.

10-6-33.13    Promulgation of rules--Purposes.

10-6-33.14    10-6-33.14 to 10-6-33.20. Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.

10-6-33.21    Assessed value of inundated farmlands--Classification.

10-6-33.22    Request for special assessment for inundated farmland--Time limit--Description of land.

10-6-33.23    10-6-33.23 to 10-6-33.27. Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.

10-6-33.28    Agricultural land to be assessed based on agricultural income value.

10-6-33.29    Agricultural income value--Determination--Database of cropland data.

10-6-33.30    Factors used for percentage of annual earning capacity.

10-6-33.31    Agricultural income value for county--Adjustment of assessed value by director of equalization.

10-6-33.32    Division of land into categories.

10-6-33.33    Classification of buildings and structures.

10-6-33.34    Market value of agricultural land.

10-6-33.35    Agricultural Land Assessment Implementation and Oversight Advisory Task Force.

10-6-33.36    Contract for collection of cash rent information.

10-6-33.37    Equalization of assessed valuation of cropland and noncropland.

10-6-33.38    Study of impact of changes to methodology of rating soils for purposes of assessing agricultural land.

10-6-34    10-6-34. Repealed by SL 2000, ch 42, § 10.

10-6-34.1    Centrally assessed operating property classified--Percentage of value at which equalized.

10-6-35    Value of land excluding improvements determined--Value including improvements--Mines and quarries included.

10-6-35.1    Repealed.

10-6-35.2    Discretionary formula for reduced taxation of new structures and additions--Partially constructed structures.

10-6-35.3    Repealed.

10-6-35.4    Municipal adoption of reduction for new property.

10-6-35.5    10-6-35.5 to 10-6-35.7. Repealed by SL 1978, ch 74, § 12.

10-6-35.8    10-6-35.8 to 10-6-35.18. Repealed by SL 2010, ch 47, §§ 8 to 18.

10-6-35.19    Repealed.

10-6-35.20    Tax credit allowed for system producing ethyl alcohol fuel--Fuel for resale excluded.

10-6-35.21    Repealed.

10-6-35.22    Repealed.

10-6-35.23    Adoption of assessed value formula by governing board of improvement district.

10-6-35.24    Repealed.

10-6-35.25    Repealed.

10-6-35.26    Repealed.

10-6-35.27    [Effective until June 30, 2025] Real property receiving discretionary formula prior to July 1, 2020.

10-6-36    Real property to be viewed--Entry of values for land, improvements and total.

10-6-36.1    Unrecorded improvements to real property--Notification of value to county auditor.

10-6-36.2    Improvements to which provisions not applicable--Petition and hearing prior to notification of auditor.

10-6-36.3    Petition for reversal of director's decision--Notice and hearing.

10-6-37    Railroad and highway rights-of-way deducted in valuing land.

10-6-38    Real estate list included in assessment lists, rolls, and book--Contents.

10-6-39    Form for real estate list.

10-6-40    Equalization director's affidavit attached to real estate list.

10-6-41    10-6-41, 10-6-42. Repealed by SL 1992, ch 80, §§ 49, 50.

10-6-43    Looseleaf records and card systems authorized--Validation of records previously used.

10-6-44    Delivery to boards of equalization of assessment books, lists, rolls and returns--Open to public inspection.

10-6-45    10-6-45. Repealed by SL 1992, ch 80, § 51.

10-6-46    10-6-46, 10-6-47. Repealed by SL 1972, ch 56, § 2.

10-6-48    10-6-48. Repealed by SL 1992, ch 80, § 52.

10-6-49    10-6-49. Repealed by SL 2011, ch 51, § 1.

10-6-50    Notice of assessment--Required information.

10-6-51    Counties not in compliance--Basis of request for and issuance of certificate of compliance.

10-6-52    10-6-52, 10-6-53. Repealed by SL 2000, ch 42, §§ 17, 18.

10-6-54    Repealed.

10-6-55    Repealed.

10-6-56    Boundaries of redevelopment neighborhood.

10-6-57    Standards for redevelopment neighborhood property within municipality.

10-6-58    10-6-58 to 10-6-65. Repealed by SL 1998, ch 53, §§ 1 to 8.

10-6-66    Classification of certain residential property.

10-6-66.1    10-6-66.1. Transferred to § 10-13-39.1.

10-6-67    Valuation of certain residential property.

10-6-68    10-6-68. Repealed by SL 2000, ch 42, § 22.

10-6-69    10-6-69. Repealed by SL 1998, ch 50, § 1.

10-6-70    10-6-70. Transferred to § 10-21-36.

10-6-71    10-6-71. Transferred to § 10-21-37.

10-6-72    10-6-72. Transferred to § 10-21-38.

10-6-73    10-6-73. Transferred to § 10-21-39.

10-6-74    10-6-74. Repealed by SL 2008, ch 44, § 4, eff. July 1, 2014.

10-6-75    Notice to real property owners of certain increases in assessed valuation--Contents--Promulgation of rules.

10-6-76    Use of arms-length sales of nonagricultural and owner-occupied property to value other real property.

10-6-77    Limitation on increase and decrease of taxable value of cropland and noncropland.

10-6-78    Consideration of federal income tax credits in assessing property prohibited.


10-6-1Definition of terms.

Terms used in this chapter mean:

(1)    "Credit," every claim and demand for money or other valuable thing and every annuity or sum of money receivable at stated periods, due or to become due, and all claims and demands secured by deeds or mortgages due or to become due, except for contracts for deed and mortgages, in which case the term means only the payment received each year under the contract or mortgage;

(2)    "District," township, municipality or ward, as the case may be;

(3)    "Full agricultural land value," the value of agricultural land as determined by the application of this chapter;

(4)    "Money," gold and silver coin, treasury notes, bank notes, and every deposit which any person owning the same or holding in trust and residing in this state is entitled to withdraw in money on demand;

(5)    "Tract," "lot," "piece," or "parcel" of real property, or "piece or parcel of land," any contiguous quantity of land in the possession of, owned by, or recorded as, the property of the same claimant, person, or company;

(6)    "True and full value," for all real property, the usual cash selling price at the place where the property to which the term is applied shall be at the time of the assessment.

Source: SL 1897, ch 28, § 1; RPolC 1903, § 2052; RC 1919, § 6666; SDC 1939, § 57.0301; SL 1976, ch 89; SL 1980, ch 77, § 2; SL 1989, ch 86, § 10.


10-6-1.1Mill levy defined--Substitution.

The term, mill levy, wherever it is used in this code means "tax levy." The code commission in future supplements and revisions of the South Dakota Codified Laws is directed to substitute the term, tax levy, and derivatives thereof for the term, mill levy, and its derivatives.

Source: SL 1988, ch 94, § 3.


10-6-1.2One mill defined--Substitution.

The term, one mill, wherever it is used in this code means "one dollar per thousand dollars of taxable valuation." The Code Commission in future supplements and revisions of the South Dakota Codified Laws is directed to substitute "one dollar per thousand dollars of taxable valuation" and derivatives thereof for the term, one mill, and its derivatives.

Source: SL 1988, ch 94, § 4.


10-6-1.3"Fair market value" and "full and true value" defined.

As used in this chapter and §§ 10-28-12, 10-28-13, 10-29-9, 10-29-9.1, 10-33-14.1, 10-35-10.1, 10-37-8, 10-37-9.1, 10-38-1, and 10-38-14, the term, fair market value, and the term, full and true value, mean the price in money that property will bring in a competitive and open market under all conditions requisite to a fair sale between a willing buyer and a willing seller, each acting prudently and with full knowledge of the relevant facts, and assuming the price is not affected by any undue stimulus.

Source: SL 1997, ch 61, § 13; SL 2000, ch 45, § 1.


10-6-1.4"Arms-length transaction" defined.

The definition of the term, arms-length transaction, as provided in § 10-11-56, also applies to the provisions of this chapter.

Source: SL 2000, ch 45, § 2.


10-6-2Period during which assessment made--Date of assessment.

All real property subject to taxation shall be listed and assessed annually, but the value of such property is to be determined according to its value on the first day of November preceding the assessment.

Source: SL 1897, ch 28, § 6; RPolC 1903, § 2057; RC 1919, § 6671; SL 1919, ch 112, § 1; SDC 1939, § 57.0322; SL 1939, ch 264; SL 1941, ch 333; SL 1943, ch 284; SL 1947, ch 399; SL 1957, ch 458; SL 1967, ch 318; SL 1979, ch 66, § 1; SL 1992, ch 80, § 29; SL 1993, ch 86, § 37.


10-6-2.1
     10-6-2.1, 10-6-2.2.   Repealed by SL 1992, ch 80, §§ 30, 31.


10-6-3
     10-6-3.   Repealed by SL 2000, ch 42, § 1.


10-6-3.1Assessment date for leased school and endowment lands--Valuation date.

For purposes of taxation of leased school and endowment lands, the assessment date shall be June first and the valuation date the preceding November first.

Source: SL 1977, ch 47, § 6; SL 1994, ch 48, § 5.


10-6-4Information as to land becoming taxable for first time--Transmittal to county officials.

The Department of Revenue shall secure information concerning lands within the state becoming taxable for the first time, together with the cancellation of title or evidence of title to any such lands. The whole or any part of the list or lists of such lands may be secured from the officials having charge of the records, with the certificate of such official attached, or by representatives of the Department of Revenue from the records. The information may be secured at any time during the year but on or before the first day of May of each year shall be transmitted by the Department of Revenue to the proper officer of each county in which the lands affected are situated, and such officer shall make necessary entries in his records to the end that the assessment and tax records of all counties in the state may be complete and correct.

Source: SDC 1939, § 57.0203; SL 1992, ch 80, § 32; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-5
     10-6-5.   Repealed by SL 1992, ch 80, § 33.


10-6-6
     10-6-6.   Repealed by SL 2000, ch 42, § 2.


10-6-7
     10-6-7.   Repealed by SL 1992, ch 80, § 34.


10-6-8Statement of personal property required of taxpayers--Property and information to be included.

The director of equalization may require each person subject to this chapter to furnish to such director of equalization a statement under oath setting forth specifically all real property owned by such person or under his control on the statutory assessment day. Such statement must be in writing upon blanks furnished under the provisions of this chapter, showing separately:

(1) to (3)    Repealed by SL 1992, ch 80, § 35.

(4)    All structures and improvements that have been erected or placed upon said person's real estate subsequent to the preceding assessment day;

(5)    The county in which such property is situated, or in which it is liable to taxation, and (if liable to taxation in the county in which the statement is made) also the municipal, school district, township, or other taxing districts in which it is situated.

Source: SL 1955, ch 422, § 24; SL 1957, ch 477, § 13; SDC Supp 1960, § 57.03A13; SL 1992, ch 80, § 35.


10-6-9
     10-6-9.   Repealed by SL 2000, ch 42, § 3.


10-6-10Statement forms to be furnished by county commissioners--Affidavit requirements.

The board of county commissioners must furnish blank forms, as approved by the secretary of revenue, of the statements provided for in § 10-6-8, affixing thereto an affidavit, which must be substantially as follows:

"I, ________ do swear that I am a resident of the county of ________ (naming it), and that my post-office address is ________; that the above list contains a full and correct statement of all structures and improvements erected or placed upon my real estate subsequent to the preceding assessment day subject to taxation, which I, or any firm of which I am a member, or any corporation, association, or company of which I am president, secretary, treasurer, or managing agent, owned, claimed or controlled on the statutory assessment day; and that I have not in any manner whatsoever transferred any property for the purpose of avoiding any assessment upon the same, or of making this statement."

The affidavit of the statement made on behalf of a firm or corporation must state the principal place of business of the firm or corporation, and in other respects must conform substantially to the preceding form. The time of the meeting of the local and county board of equalization must be stated in such form. The signing of the above affidavit by the taxpayer or his agent shall be in lieu of verification before a notary public.

Source: SL 1955, ch 422, § 21; SL 1957, ch 477, § 10; SDC Supp 1960, § 57.03A10; SL 1992, ch 80, § 36; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-11
     10-6-11 to 10-6-16.   Repealed by SL 1992, ch 80, §§ 37 to 42.


10-6-17
     10-6-17.   Repealed by SL 2000, ch 42, § 4.


10-6-18
     10-6-18.   Repealed by SL 1982, ch 86, § 3.


10-6-19
     10-6-19.   Repealed by SL 1992, ch 80, § 43.


10-6-20Penalty for intentional evasion, deceit or failure to list property.

Any person who shall intentionally evade, deceive, or by any manner or means, not list all the property of every description which he is required to list, shall, in addition to any and all other penalties, be subject to the penalty of having added to his assessment as previously listed, the amount not listed and an additional penalty of fifty percent of the amount not listed.

Source: SL 1899, ch 40, § 13; RPolC 1903, § 2074; RC 1919, § 6691; SDC 1939, § 57.0341; SL 1955, ch 422, § 28; SL 1957, ch 477, § 16; SDC Supp 1960, § 57.03A16; SL 1992, ch 80, § 44.


10-6-21False or fraudulent property statement--Intentional failure or refusal to deliver tax list--Conversion of property to evade tax--Misdemeanor.

A person who gives a false or fraudulent list, schedule, or statement required by this chapter, who intentionally fails or refuses to deliver to the director of equalization, when called on for that purpose, a list of the taxable property which he is required to list under this chapter, or who temporarily converts any part of his property into property not taxable, for the fraudulent purpose of preventing such property from being listed, and of evading the payment of taxes thereon, is guilty of a Class 2 misdemeanor.

Source: SL 1899, ch 40, § 8; RPolC 1903, § 2069; RC 1919, § 6686; SDC 1939, § 57.0338; SL 1982, ch 86, § 4; SL 1989, ch 82, § 41.


10-6-22Prosecution of tax evaders--Disposition of fines.

The director of equalization shall forthwith notify the state's attorney of any such delinquency or offense as described by § 10-6-21 and he shall prosecute such offender to final judgment and execution, and such fine when collected shall be paid into the county treasury for the use of the public schools.

Source: SL 1899, ch 40; RPolC 1903, § 2069; RC 1919, § 6686; SDC 1939, § 57.0338; SL 1989, ch 82, § 41.


10-6-23
     10-6-23, 10-6-24.   Repealed by SL 1992, ch 80, §§ 45, 46.


10-6-25Examination of property by director or deputy--Inspection of records--Administration of oaths.

For the purpose of properly assessing property for taxation and equalizing and collecting taxes, the county director of equalization or the director's deputy shall personally inspect and examine all property listed and assessed. The director or the director's deputies may inspect and examine the records of all public offices and the books and papers relating to the fair market value of the property being assessed of all corporations, banks, and taxpayers in this state, without charge. The director or the director's deputies may administer oaths or affirmation to any person in the discharge of their duties.

Source: SDC 1939, § 57.0340; SL 1989, ch 82, § 29; SL 2000, ch 42, § 5.


10-6-25.1
     10-6-25.1, 10-6-25.2.   Repealed by SL 2000, ch 42, §§ 6, 7.


10-6-26
     10-6-26, 10-6-27.   Repealed by SL 1982, ch 86, §§ 5, 6.


10-6-28
     10-6-28.   Repealed by SL 1992, ch 80, § 47.


10-6-29
     10-6-29.   Repealed by SL 2000, ch 42, § 8.


10-6-30
     10-6-30.   Repealed by SL 1992, ch 80, § 48.


10-6-31Classification of property--Notation by director of equalization.

For the purposes of taxation, all property is hereby classified into the following classes:

(1)    Agricultural property;

(2)    Nonagricultural property; and

(3)    Owner-occupied single-family dwellings.

Agricultural property includes all property and land used exclusively for agricultural purposes, both tilled and untilled, and the improvements on the land. However, agricultural property does not include any normally occupied dwelling or automobile garage or portion of a building used for that purpose by the occupant of such dwelling. Owner-occupied single-family dwellings include all property classified pursuant to § 10-13-39.

Nonagricultural property includes all other property not otherwise classified.

The director of equalization in listing and assessing all property to which this section applies shall designate opposite each description the class to which the property belongs.

Source: SL 1931, ch 256; SL 1933, ch 191, § 1; SDC 1939, § 57.0332; SL 1953, ch 458; SL 1964, ch 210; SL 1965, ch 282, § 1; SL 1967, ch 319; SL 1977, ch 81, § 1; SL 1978, ch 71, § 1; SL 1979, ch 63, § 2; SL 1989, ch 82, § 41; SL 2008, ch 41, § 1; SL 2015, ch 65, § 2.


10-6-31.1Agricultural land classified and taxed without regard to zoning.

Land devoted to agricultural use shall be classified and taxed as agricultural land without regard to the zoning classification which it may be given; provided, however, that all or any portion of such land which is sold or otherwise converted to a use other than agricultural shall be classified and taxed accordingly.

Source: SL 1974, ch 90.


10-6-31.2Leased school lands classified separately.

Leased school and endowment lands as provided in chapter 5-11 are hereby separately classified for the purpose of taxation.

Source: SL 1977, ch 47, § 4; SL 1994, ch 48, § 6.


10-6-31.3Criteria for classification of land as agricultural.

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.

Source: SL 1979, ch 65; SL 1991, ch 81; SL 1992, ch 77; SL 1992, ch 78; SL 1993, ch 83; SL 1998, ch 51, § 7; SL 2008, ch 44, § 18, eff. July 1, 2009; SL 2016, ch 57, § 1; SL 2017, ch 62, § 1.


10-6-31.4Property tax freeze authorized for agricultural property of beginning farmer.

Agricultural property classified pursuant to § 10-6-31 shall be valued for taxation purposes in the usual manner. However, the board of county commissioners of the county where such property is located may, in its discretion, freeze the property taxes levied for a period of five years immediately following the purchase of agricultural property by a beginning farmer.

Source: SL 1994, ch 81, § 1.


10-6-31.5Criteria for qualifying for tax freeze on agricultural property of beginning farmer.

The tax freeze in § 10-6-31.4 may be applied to agricultural property classified pursuant to § 10-6-31 if the following criteria are met:

(1)    The owner of the property is a beginning farmer who has never before owned agricultural land;

(2)    The property does not exceed one hundred sixty acres or one-half of the median-sized farm in the county as determined by the board of commissioners, whichever is greater;

(3)    The beginning farmer works on and operates the farm;

(4)    At least half of the beginning farmer's gross income is derived from agriculture;

(5)    The property has not been subject to a beginning farmer's tax freeze for at least twenty years prior to the purchase date.

Source: SL 1994, ch 81, § 2.


10-6-31.6State-owned public shooting area or game production area assessed and taxed as agricultural land.

Notwithstanding the provisions of § 10-6-31.3, any state-owned public shooting area or a state-owned game production area as identified pursuant to § 41-4-8 that is owned and managed by the Department of Game, Fish and Parks shall be assessed and taxed as agricultural land.

Source: SL 2016, ch 57, § 2.


10-6-31.7Classification of certain agricultural land as riparian buffer strip--County board authorization to treat certain land as buffer strip.

Any agricultural land within one hundred twenty feet of:

(1)    A lake assigned immersion recreation or limited contact recreational beneficial uses in ARSD 74:51:02:02 and listed in ARSD 74:51:02:04; or

(2)    A river or stream assigned any of the warmwater or coldwater fish life propagation beneficial uses in ARSD 74:51:03:02 and listed in ARSD 74:51:03:04 to 74:51:03:27, inclusive;

that meets the requirements of § 10-6-31.8 is specifically classified for the purpose of taxation as a riparian buffer strip. The riparian buffer strip shall be assessed at sixty percent of its agricultural income value as determined by §§ 10-6-33.28 to 10-6-33.34, inclusive.

In addition, the board of county commissioners may, by resolution, authorize the director of equalization to treat any agricultural land within one hundred twenty feet of a tributary to any lake, river, or stream specified in subdivision (1) and (2) as a riparian buffer strip for the purposes of taxation. The riparian buffer strip shall meet the requirements of § 10-6-31.8 and shall be assessed at sixty percent of its agricultural income value as determined by §§ 10-6-33.28 to 10-6-33.34, inclusive.

Source: SL 2017, ch 63, § 1; SL 2018, ch 60, § 1.


10-6-31.8Criteria for classification of agricultural land as riparian buffer strip.

Agricultural land shall be classified as a riparian buffer strip pursuant to § 10-6-31.7, if it meets the following criteria:

(1)    The agricultural land consists of existing or planted perennial vegetation;

(2)    The riparian buffer strip is a minimum of fifty feet in width along an eligible river, stream, or lake, and extends up to a maximum of one hundred twenty feet in width along an eligible river, stream, or lake. For the purposes of this section, the measurement along a river or stream begins at the top of the bank or where the upland or terrestrial vegetation begins, whichever is closer to the water channel, and extends landward from the beginning measuring point. The measurement along a lake begins where upland or terrestrial vegetation begins and extends landward from the beginning measuring point. A riparian buffer strip may vary along the riparian area if the strip is at least fifty to one hundred twenty feet in width and is mapped to calculate the taxable area involved;

(3)    The perennial vegetation is not harvested or mowed before July tenth. However, a minimum of four inches of vegetative cover shall be maintained at all times;

(4)    The perennial vegetation is not grazed during the months of May to September, inclusive; and

(5)    The landowner files a verified application with the director of equalization of the county where the agricultural property is located, verifying that the criteria of this section has been met.

The application shall include a legal description of the parcel where the riparian buffer strip is located, all necessary documentation including maps and acre totals, and any other information required by the director of equalization to determine eligibility. The application shall be filed annually with the director of equalization before October sixteenth. If the director of equalization determines that the agricultural land meets the criteria provided by this section, the land shall be assessed pursuant to § 10-6-31.7 on November first. The application shall be in a form as prescribed by the secretary of revenue.

Source: SL 2017, ch 63, § 2.


10-6-31.9Penalty for misrepresentation of agricultural land as qualifying as riparian buffer strip.

Any person, who requested that agricultural land be categorized as a riparian buffer strip pursuant to § 10-6-31.7 and intentionally misrepresents any fact as to the qualification of the land as a riparian buffer strip, shall be assessed a penalty equal to two dollars per thousand dollars of taxable valuation on the land. The assessment shall become a lien on the property pursuant to § 10-21-33. When assessing the penalty imposed by this section, the taxable valuation of the land shall be based on the agricultural income value of the land.

Source: SL 2017, ch 63, § 3.


10-6-32
     10-6-32.   Repealed by SL 1995, ch 55.


10-6-33Basis for determining valuation for tax purposes--Forced sale value not to be used--Cost, market and income approaches to appraisal considered.

All property shall be assessed at its true and full value in money. The true and full value is the taxable value of such property upon which the levy shall be made and applied and the taxes computed. In determining the true and full value of property the director of equalization may not adopt a lower or different standard of value because it is to serve as a basis of taxation. The director may not adopt as a criterion of value the price for which the property would sell at a forced sale, or in the aggregate with all the property in the third class municipality or district. The director shall value each article or description by itself and at an amount or price as he believes the property to be fairly worth in money. The true and full value shall be determined by appropriate consideration of the cost approach, the market approach and the income approach to appraisal. The director of equalization shall consider and document all elements of such approaches that are applicable prior to a determination of true and full value.

Source: SL 1897, ch 28, § 25; RPolC 1903, § 2085; RC 1919, § 6700; SDC 1939, § 57.0334; SL 1957, ch 459, § 1; SL 1977, ch 86, § 1; SL 1989, ch 86, § 1; SL 1989, ch 87, § 1; SL 1992, ch 60, § 2.


10-6-33.1
     10-6-33.1.   Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.


10-6-33.2Determination of capacity to produce agricultural products--Sources of information.

The capacity of agricultural land to produce agricultural products shall be based on average yields under natural conditions for land producing crops or plants and on the average acres per animal unit for grazing land. The average shall affect each operating unit and shall be based on the ten-year period immediately preceding the tax year in issue. In determining the capacity to produce, the county director of equalization and the county board of equalization shall consider yields, the extent to which the land is able to be tilled or is nontillable based upon soil type, terrain, topographical, and surface conditions, and animal unit carrying capacity, as determined by the natural resources conservation service, farm credit services of America, farm service agency, the extension service, and private lending agencies dealing with land production capacities.

Source: SL 1970, ch 79, § 2; SL 2005, ch 57, § 1.


10-6-33.3Property not used for agriculture separately assessed.

Land or improvement on land within an operating unit which is not used incident to an agricultural pursuit shall be separately listed and assessed.

Source: SL 1970, ch 79, § 4; SL 2008, ch 44, § 15, eff. July 1, 2009.


10-6-33.4
     10-6-33.4.   Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.


10-6-33.5Assessment, valuation, equalization, and taxation of school and endowment lands.

The assessment, valuation, equalization, and taxation of school and endowment lands shall be at the same level and on the same basis as lands assessed, valued, and equalized according to §§ 10-6-33.28 to 10-6-33.33, inclusive.

Source: SL 1977, ch 47, § 5; SL 1994, ch 48, § 7; SL 2008, ch 44, § 16, eff. July 1, 2009.


10-6-33.6
     10-6-33.6.   Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.


10-6-33.7Classification of agricultural land in each county--Basis for soil valuation.

Agricultural land in each county shall be divided into the eight classes defined by the United States Department of Agriculture's soil conservation service as published in its soil survey for each county. The county director of equalization shall, based on the agricultural lands soil survey classification, determine a value for each soil type.

Source: SL 1989, ch 86, § 5; SL 1991, ch 82, § 2; SL 2008, ch 44, § 17, eff. July 1, 2009.


10-6-33.8Minimum and maximum median sales to assessment ratio.

The median sales to assessment ratio of all real property may not be less than eighty-five percent or more than one hundred percent.

Source: SL 1989, ch 86, § 6; SL 1990, ch 71, § 1; SL 1993, ch 84, § 3.


10-6-33.9Maximum coefficient of dispersion.

The coefficient of dispersion for real property in a county, as calculated pursuant to § 10-11-59, may not be more than twenty-five percent.

Source: SL 1989, ch 86, § 7; SL 1990, ch 71, §§ 2, 9.


10-6-33.10
     10-6-33.10.   Repealed by SL 1995, ch 68, § 64.


10-6-33.11
     10-6-33.11.   Repealed by SL 2000, ch 42, § 9.


10-6-33.12Distinction between agricultural and nonagricultural real property.

For the purposes of §§ 10-6-33.8 and 10-6-33.9, there shall be a separate median sales to assessment ratio and coefficient of dispersion for agricultural and nonagricultural real property.

Source: SL 1990, ch 71, § 6.


10-6-33.13Promulgation of rules--Purposes.

The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning the:

(1)    Collection and tabulation of information required to determine median appraisal or sales assessment ratio, and coefficient of dispersion;

(2)    Criteria to be included in a compliance audit of assessment practices;

(3)    Conditions under which a certificate of compliance may be issued to a county;

(4)    Procedures for determining the valuation of agricultural buildings and structures;

(5)    Procedures for determining the valuation of dwellings on agricultural land and automobile garages or portions of buildings used as automobile garages;

(6)    Application of cropland and noncropland income values;

(7)    Application of soil classification standards; and

(8)    Procedures for making adjustments to the value of agricultural land pursuant to §§ 10-6-33.28 to 10-6-33.33, inclusive.

Before the secretary promulgates any rules pursuant to subdivision (4) to (8), inclusive, the secretary shall present the proposed rules to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force established pursuant to § 10-6-33.35.

Source: SL 1990, ch 71, § 7; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 44, § 13; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-33.14
     10-6-33.14 to 10-6-33.20.   Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.


10-6-33.21Assessed value of inundated farmlands--Classification.

If an application is submitted pursuant to § 10-6-33.22, the director of equalization shall take into consideration and make adjustments in setting the assessed value for agricultural land which has been inundated by floods and is not farmable during the past three growing seasons. The director of equalization shall use the marshland soils rating classification pursuant to §§ 10-6-33.2 and 10-6-33.7 to determine the assessed value of the acreage inundated and not farmable.

Source: SL 1998, ch 55, § 1; SL 1999, ch 43, § 1.


10-6-33.22Request for special assessment for inundated farmland--Time limit--Description of land.

If agricultural land has been inundated by floods and was not farmable during the past three growing seasons, any landowner or the landowner's agent or attorney may request the director of equalization to specially assess the land for the purpose of taxation by submitting an application before November first. The landowner or the landowner's agent or attorney shall describe on the application the portion of the agricultural land that has been inundated by floods and was not farmable during the past three growing seasons.

Source: SL 1999, ch 43, § 2.


10-6-33.23
     10-6-33.23 to 10-6-33.27.   Repealed by SL 2008, ch 44, §§ 23, 24, eff. July 1, 2009.


10-6-33.28Agricultural land to be assessed based on agricultural income value.

Notwithstanding the provisions of § 10-6-33, beginning on July 1, 2009, agricultural land shall be assessed based on its agricultural income value on a per acre basis. The agricultural income value of agricultural land shall be determined on the basis of productivity and the annual earnings capacity of the agricultural land. The productivity of agricultural land and its annual earning capacity shall be based on data collected and analyzed pursuant to this section and §§ 10-6-33.29 to 10-6-33. 33, inclusive.

Agricultural income value is defined as the capitalized annual earning capacity on a per acre basis which has been adjusted by an amount that reflects the landowner's share of the gross return. The capacity of cropland to produce agricultural products shall be based on the income from crops or plants produced on the land. The capacity of noncropland to produce agricultural products shall be based on cash rents or the animal unit carrying capacity of the land, or a combination of both. For the purpose of this section, annual earning capacity for:

(1)    Cropland is thirty-five percent of the annual gross return to the land; and

(2)    Noncropland is one hundred percent of the annual gross return to the land based on cash rent for noncropland.

The annual earning capacity shall be capitalized at a rate of six and six-tenths percent to determine the agricultural income value.

Source: SL 2008, ch 44, § 5; SL 2009, ch 40, § 1.


10-6-33.29. Agricultural income value--Determination--Database of cropland data.

The secretary of revenue, upon notifying the Agricultural Land Assessment Implementation and Oversight Advisory Task Force, may contract with one or more qualified entities for the purpose of creating or maintaining a database to determine the agricultural income value of agricultural land by county, consisting of eight consecutive years of cropland data and noncropland data. The data for the year representing the highest agricultural income value among the eight years and the year representing the lowest agricultural income value among the eight years shall be discarded from the database and the remaining six years averaged for valuation purposes. For each assessment year, the first year of the eight-year data period shall be the year that is nine years less than the assessment year.

The cropland data must include acres planted, acres harvested, yield per acre, and statewide crop prices. The noncropland data must include cash rents and statewide calf prices. The noncropland data may also include rangeland and pastureland animal unit months per acre, rangeland and pastureland acres, and grazing season data.

Any qualified entity contracting with the secretary of revenue pursuant to this section shall provide the data for each county to the secretary of revenue by June first of each year.

For purposes of this section, a qualified entity is a federal or state agency, instrumentality, institution of higher learning, other federal or state authority, or private entity with expertise in researching or evaluating land production capacity.

Source: SL 2008, ch 44, § 6; SL 2009, ch 40, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2011, ch 49, § 1; SL 2020, ch 37, § 1.


10-6-33.30Factors used for percentage of annual earning capacity.

The economics department of South Dakota State University shall submit recommendations to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force by November 1, 2008, regarding factors to use for the percentage of annual earning capacity to be used to determine the agricultural income value of the land pursuant to § 10-6-33.28 and other provisions used to assess agricultural land that will provide the least amount of shift between cropland and noncropland on a statewide basis. Thereafter, the economics department shall submit such recommendations, if any, to the task force by September first of each year.

Source: SL 2008, ch 44, § 7.


10-6-33.31. Agricultural income value for county--Adjustment of assessed value by director of equalization.

Before July first each year, the secretary of revenue shall annually provide each director of equalization the agricultural income value for each county as computed pursuant to § 10-6-33.28. The director of equalization shall annually determine the assessed value of agricultural land. The assessed value of agricultural land may be adjusted by the director of equalization to the extent the following factors affect the productivity of the land:

(1)    The capacity of the land to produce agricultural products as defined in § 10-6-33.2; and

(2)    One or more of the following factors:

(a)    Location;

(b)    Size;

(c)    Soil survey statistics;

(d)    Terrain;

(e)    Topographical condition;

(f)    Climate;

(g)    Accessibility; or

(h)    Surface obstructions.

Each adjustment shall be documented. The director of equalization shall document an adjustment by using data from sources reasonably related to the adjustment being made. In addition, the director of equalization may use data from comparable sales of agricultural land to document the adjustment concerning productivity for any of the factors listed in this section.

If the actual use of agricultural land varies from the land use category specified by soil classification standards, or if any factors listed in subdivision (2) exist that affect the productivity of the land, the property owner may request an examination of the land by the director of equalization on a form prescribed by the department. The director of equalization shall determine whether to adjust the assessed value of the agricultural land pursuant to the factors listed in subdivision (2).

The director of equalization shall document all supporting evidence for the adjustment determination. The director of equalization shall provide any adjustment documentation to the department upon request. The adjustment documentation must be kept in the director of equalization's office for the life of the adjustment.

Source: SL 2008, ch 44, § 8; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2011, ch 50, § 1; SL 2013, ch 44, § 1; SL 2020, ch 38, § 1.


10-6-33.32Division of land into categories.

Agricultural land shall be divided by the director of equalization into categories, including cropland and noncropland. Each category shall be divided into classes based on soil classification standards developed by the United States Department of Agriculture Natural Resources Conservation Service.

Source: SL 2008, ch 44, § 9.


10-6-33.33Classification of buildings and structures.

Buildings and structures, other than normally occupied dwellings on agricultural land and automobile garages or portions of buildings used as automobile garages, which are used exclusively for agricultural purposes and situated on agricultural land, are hereby specifically classified for tax purposes as agricultural property and shall be assessed as similar nonagricultural property.

Source: SL 2008, ch 44, § 10.


10-6-33.34Market value of agricultural land.

The agricultural income value for agricultural land as determined by §§ 10-6-33.28 to 10-6-33.33, inclusive, represents the market value of agricultural land, and the Department of Revenue shall provide the director of equalization of each county the factor of adjustment necessary for the computation required pursuant to §§ 10-3-41, 10-12-31.1, 10-12-42, and 10-13-37.

Source: SL 2008, ch 44, § 11; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-33.35Agricultural Land Assessment Implementation and Oversight Advisory Task Force.

There is hereby established the Agricultural Land Assessment Implementation and Oversight Advisory Task Force. The task force shall consist of the following fourteen members:

(1)    The speaker of the House of Representatives shall appoint four members of the House of Representatives, no more than two of whom may be from one political party;

(2)    The speaker of the House of Representatives shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background;

(3)    The president pro tempore of the Senate shall appoint four members of the Senate, no more than two of whom may be from one political party; and

(4)    The president pro tempore of the Senate shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background.

The initial appointments shall be made no later than July 1, 2008, and shall serve until January 12, 2009. The speaker of the House of Representatives and president pro tempore of the Senate before the close of each regular session of the Legislature held in odd-numbered years shall appoint members to the task force for a term of two years. If there is a vacancy on the task force, the vacancy shall be filled in the same manner as the original appointment.

The task force shall advise the department regarding the rules promulgated by the department to administer the provisions concerning the assessment and taxation of agricultural lands and shall review the implementation of the provisions of law concerning the assessment and taxation of agricultural land. The task force shall report to the Senate and House of Representatives and may submit a copy of its report to the Governor. The task force may present draft legislation and policy recommendations to the Legislative Research Council Executive Board.

The task force shall make recommendations in the following areas:

(1)    The proper percentage of annual earning capacity to be used to determine the agricultural income value pursuant to § 10-6-33.28;

(2)    The proper capitalization rate in order to have total taxable valuation for the taxes payable in 2011 from agricultural property be not more than total taxable valuation for the taxes payable in 2010 from agricultural property plus the estimated growth in agricultural property value in 2010;

(3)    The changes, if any, that must be made to §§ 13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of additional taxes that may be generated on agricultural land by a school district pursuant to the provisions of §§ 13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 will not provide a substantial property tax revenue increase for the school district pursuant to the implementation of the productivity system pursuant to §§ 10-6-33.28 to 10-6-33.33, inclusive;

(4)    The changes, if any, that must be made to §§ 13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of property taxes that may be lost on agricultural land by a school district pursuant to the provisions of §§ 13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 will not provide a substantial property tax revenue decrease for the school district pursuant to the implementation of the productivity system pursuant to §§ 10-6-33.28 to 10-6-33.33, inclusive; and

(5)    The distribution of the local effort for the general fund of school districts between the classifications of real property as provided by § 13-13-72.1 which establishes the real property tax contribution from agricultural property for the general fund of school districts as a fixed ratio of the total local effort for such levies. The task force shall also consider the other taxes paid by agricultural property, the relationship of the total assessed value of agricultural property to the total assessed value of all real property, and other factors the task force deems appropriate.

Source: SL 2008, ch 44, § 12 as amended by SL 2008, ch 42, § 2; SL 2009, ch 41, § 1; SL 2013, ch 45, § 1.


10-6-33.36Contract for collection of cash rent information.

The secretary of revenue may enter into a contract for the collection of cash rent information for agricultural land by county. Cash rent information shall be adjusted by soil survey statistics if available.

Source: SL 2009, ch 40, § 5; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-33.37Equalization of assessed valuation of cropland and noncropland.

Notwithstanding the provisions of §§ 10-6-33.28 to 10-6-33.33, inclusive, the director of equalization may equalize the assessed valuation of all cropland if the total assessed valuation of all cropland and total assessed valuation of all noncropland is equal to the total assessed valuation of agricultural land as determined by the application of the provisions of this chapter. Notwithstanding the provisions of §§ 10-6-33.28 to 10-6-33.33, inclusive, the director of equalization may equalize the assessed valuation of all noncropland if the total assessed valuation of all cropland and total assessed valuation of all noncropland is equal to the total assessed valuation of agricultural land as determined by the application of the provisions of this chapter.

Source: SL 2009, ch 40, § 6.


10-6-33.38Study of impact of changes to methodology of rating soils for purposes of assessing agricultural land.

The Department of Revenue, in conjunction with South Dakota State University, shall study the impact of changes to the methodology of rating soils for purposes of assessing agricultural land. The study shall be based on South Dakota State University's research initiated by the Agricultural Land Assessment Implementation and Oversight Advisory Task Force pursuant to chapter 106 of the 2016 Session Laws. The department shall select a representative sampling of counties to participate in the study and shall provide data, technical assistance, and any other information to the counties as necessary to analyze the impacts of any recommended changes to the soil ratings. The department shall present its findings to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force on or before January 1, 2020.

Source: SL 2019, ch 60, § 1.


10-6-34
     10-6-34.   Repealed by SL 2000, ch 42, § 10.


10-6-34.1Centrally assessed operating property classified--Percentage of value at which equalized.

All centrally assessed operating property, whether real, personal, or mixed, is hereby classified for purposes of ad valorem taxation and shall be assessed and equalized at the same percentage as other real property in the county.

Source: SL 1978, ch 72, § 14; SL 1990, ch 73.


10-6-35Value of land excluding improvements determined--Value including improvements--Mines and quarries included.

In assessing any tract or lot of real property, the value of the land, exclusive of improvements, shall be determined; also the value of all improvements and structures thereon, and the aggregate value of the property including all structures and other improvements, excluding the value of crops upon cultivated lands shall be assessed against it. In valuing any real property upon which there is a coal or other mine, or stone or other quarry, the same shall be valued at such a price as such property, including the mine or quarry, would sell at a fair voluntary sale for cash.

Source: SL 1897, ch 28, § 25; RPolC 1903, § 2085; RC 1919, § 6700; SDC 1939, § 57.0334; SL 1957, ch 459.


10-6-35.1Repealed.

Source: SL 1970, ch 81, §§ 1, 4; SL 1971, ch 73; SL 1974, ch 91, § 1; SL 1985, ch 70; SL 1987, ch 84, § 1; SL 1989, ch 82, § 41; SL 1993, ch 85, § 1; SL 2000, ch 42, § 11; SL 2007, ch 53, § 2; SL 2020, ch 39, § 2.


10-6-35.2. Discretionary formula for reduced taxation of new structures and additions--Partially constructed structures.

Any structure classified pursuant to this section, shall, following construction, be valued for taxation purposes in the usual manner. However, the board of county commissioners of the county where the structure is located, may adopt any formula for assessed value to be used for tax purposes. The formula may include for any or all of the five tax years following construction all, any portion or none of the assessed valuation for tax purposes. Any formula adopted shall be equally applied to specifically classified structures within a tax increment finance district. The board of county commissioners of the county where the structure is located may, if requested by the owner of the structure, not apply the discretionary formula and the full assessment shall be made without application of the formula. In waiving the formula for the structure of one owner, the board of county commissioners is not prohibited from applying the formula for subsequent new structures. The assessed valuation during any of the five years may not be less than the assessed valuation of the property in the year preceding the first year of the tax years following construction.

Any structure that is partially constructed on the assessment date may be valued for tax purposes pursuant to this section and the valuation may not be less than the assessed valuation of the property in the year preceding the beginning of construction. The period that the property is valued for tax purposes under this section may include the years when the property is partially constructed.

Following the five-year period under this section, the property shall be assessed at the same percentage as is all other property for tax purposes.

Any of the following types of real property may be specifically classified for the purpose of taxation pursuant to this section:

(1)    Any new industrial or commercial structure, or any addition, renovation, or reconstruction to an existing structure, located within a designated urban renewal area as defined in § 11-8-4, if the new structure, addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;

(2)    Any new industrial structure, including a power generation facility, or an addition to an existing structure, if the new structure or addition has a full and true value of thirty thousand dollars or more;

(3)    Any new nonresidential agricultural structure, or any addition to an existing structure, if the new structure or addition has a full and true value of ten thousand dollars or more;

(4)    Any new commercial structure, or any addition to an existing structure, except a commercial residential structure as described in subdivision (5), if the new structure or addition has a full and true value of thirty thousand dollars or more;

(5)    Any new commercial residential structure, or addition to an existing structure, containing four or more units, if the new structure or addition has a full and true value of thirty thousand dollars or more;

(6)    Any new affordable housing structure containing four or more units with a monthly rental rate of the units at or below the annually calculated rent for the state's sixty percent area median income being used by the South Dakota Housing Development Authority, for a minimum of ten years following the date of first occupancy, if the structure has a full and true value of thirty thousand dollars or more;

(7)    Any new residential structure, or addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to § 10-6-56 if the new structure, addition, or renovation has a full and true value of five thousand dollars or more. The structure shall be located in an area defined and designated as a redevelopment neighborhood based on conditions provided in § 11-7-2 or 11-7-3: or

(8)    Any commercial, industrial, or nonresidential agricultural property which increases more than ten thousand dollars in full and true value as a result of reconstruction or renovation of the structure.

Source: SL 1970, ch 81, § 2; SL 1974, ch 91, § 3; SL 1977, ch 82, § 1; SL 1986, ch 84; SL 1987, ch 85; SL 1991, ch 83, § 1; SL 1993, ch 85, § 3; SL 1994, ch 78, § 1; SL 1994, ch 79, § 3; SL 2000, ch 42, § 12; SL 2019, ch 61, § 2; SL 2020, ch 39, § 1.


10-6-35.3Repealed.

Source: SL 1970, ch 81, § 3; SL 2020, ch 39, § 3.


10-6-35.4. Municipal adoption of reduction for new property.

If the board of county commissioners of a county has not adopted a formula pursuant to § 10-6-35.2, the governing board of a municipality where the structures defined in § 10-6-35.2 are located, or within three miles of the corporate limits of the municipality may in the governing board's discretion adopt all or any part of the formula for assessed value pursuant to § 10-6-35.2.

Source: SL 1974, ch 91, § 2; SL 1977, ch 82, § 2; SL 1993, ch 82, § 3; SL 1993, ch 85, § 4; SL 1994, ch 79, § 4; SL 2020, ch 39, § 4.


10-6-35.5
     10-6-35.5 to 10-6-35.7.   Repealed by SL 1978, ch 74, § 12.


10-6-35.8
     10-6-35.8 to 10-6-35.18.   Repealed by SL 2010, ch 47, §§ 8 to 18.


10-6-35.19Repealed.

Source: SL 1980, ch 73; SL 1981, ch 80; SL 1989, ch. 82, § 41; SL 2000, ch 42, § 13; SL 2020, ch 39, § 5.


10-6-35.20Tax credit allowed for system producing ethyl alcohol fuel--Fuel for resale excluded.

An owner of real property is entitled to a property tax assessment credit for a renewable energy resource system that produces ethyl alcohol for use as fuel. Such fuel may be consumed anywhere subject to the limitation provided for in § 10-6-35.10.

Source: SL 1980, ch 84, § 5.


10-6-35.21Repealed.

Source: SL 1987, ch 84, § 2; SL 1989, ch. 82, § 41; SL 2000, ch 42, § 14; SL 2020, ch 39, § 6.


10-6-35.22Repealed.

Source: SL 1987, ch 84, § 3; SL 1988, ch 87; SL 2020, ch 39, § 6.


10-6-35.23. Adoption of assessed value formula by governing board of improvement district.

If the board of county commissioners of a county has not adopted a formula pursuant to § 10-6-35.2, the governing board of an improvement district where the structures defined in subdivision 10-6-35.2(2) are located may adopt all or any part of the formula for assessed value pursuant to § 10-6-35.2.

Source: SL 1991, ch 64, § 10; SL 2020, ch 39, § 7.


10-6-35.24Repealed.

Source: SL 1993, ch 85, § 2; SL 1994, ch 79, § 1; SL 2000, ch 42, § 15; SL 2020, ch 39, § 8.


10-6-35.25Repealed.

Source: SL 1994, ch 79, § 2; SL 2000, ch 42, § 16; SL 2020, ch 39, § 8.


10-6-35.26Repealed.

Source: SL 2019, ch 61, § 1; SL 2020, ch 39, § 8.


10-6-35.27. [Effective until June 30, 2025] Real property receiving discretionary formula prior to July 1, 2020.

Any real property receiving the benefit of a discretionary formula prior to July 1, 2020, shall continue to be assessed and taxed in the manner provided for in any county or municipal resolution adopted pursuant to this chapter and in effect prior to July 1, 2020, and shall continue to be subject to the provisions of subdivision 10-12-44(2), and §§ 11-9-20 and 13-13-20.4.

Source: SL 2020, ch 39, § 15.

Effective June 30, 2025

10-6-35.27Repealed.

Source: SL 2020, ch 39, § 15, eff. Jun. 30, 2025.


10-6-36Real property to be viewed--Entry of values for land, improvements and total.

The director of equalization shall actually view, when practicable, and determine the true and full value of each tract or lot of real property listed for taxation, and shall enter the value thereof in one column, and the value of all improvements or structures thereon in another column, opposite each description of property, also the total value of the same including improvements and structures.

Source: SL 1897, ch 28, § 30; RPolC 1903, § 2089; SL 1913, ch 21; RC 1919, § 6708; SDC 1939, § 57.0331; SL 1989, ch. 82, § 41.


10-6-36.1Unrecorded improvements to real property--Notification of value to county auditor.

If the director of equalization finds improvements to real property when assessing such property for tax purposes, and if the improvements are not recorded in the director's records for such property and the improvements were not made in the year immediately preceding the assessment date, the director shall notify the county auditor of the value of such improvements and the date when the improvements were added to the real property.

Source: SL 1989, ch 85, § 1.


10-6-36.2Improvements to which provisions not applicable--Petition and hearing prior to notification of auditor.

The provisions of §§ 10-6-36.1 to 10-6-36.3, inclusive, may not be applied to improvements to real property made two or more years prior to the assessment date unless the owner of the real property willfully hid or attempted to hide the improvements from the director of equalization for the purpose of evading the taxation of such improvements. Before the director of equalization may notify the county auditor of improvements made two or more years prior to the assessment date, the director shall petition the circuit court where such real property is located. The court shall hold a hearing on such petition and shall determine if the owner of the real property hid or attempted to hide the improvements for the purpose of evading the taxation of such improvements. The court shall provide reasonable notice of the hearing to the director of equalization and the owner of such real property. The director of equalization and the owner of the real property shall be given opportunity to present evidence and be represented by counsel.

Source: SL 1989, ch 85, § 1A.


10-6-36.3Petition for reversal of director's decision--Notice and hearing.

Any person whose improvements are added to the tax roll pursuant to §§ 10-6-36.1 to 10-6-36.3, inclusive, but feels that the improvements were not added to the property tax roll in the year the improvements should have been added because of poor assessment practices, may petition the circuit court where such real property is located for a reversal of the director of equalization's decision. The court shall hold a hearing on such petition and shall determine if poor assessment practice was the reason the improvements were not added to the tax roll in the year such improvements should have been added. The court shall provide reasonable notice of the hearing to the director of equalization and the owner of such real property. The director of equalization and the owner of the real property shall be given opportunity to present evidence and be represented by counsel.

Source: SL 1989, ch 85, § 1B.


10-6-37Railroad and highway rights-of-way deducted in valuing land.

The county director of equalization shall, in assessing lands for taxation through or over which any railroad or public highway runs, deduct from the entire area of such land the amount of land embraced within the limits of the right-of-way of such railroad or public highway, and assess to the owner of such land through or over which such right-of-way or other highway extends, only the amount of such land less the amount so deducted. This section does not apply to highways running upon section lines.

Source: SL 1890, ch 24, § 1; RPolC 1903, § 2096; RC 1919, § 6715; SDC 1939, § 57.0335; SL 1989, ch 82, § 30.


10-6-38Real estate list included in assessment lists, rolls, and book--Contents.

The assessment lists, rolls, and book shall contain a list of all the taxable lands in the county in numerical order, beginning with the lowest numbered section in the lowest numbered township in the lowest numbered range in the county, and ending with the highest numbered section, township, and range, with the number of acres in each tract set opposite the same in a column provided for that purpose, and the assessed value thereof in another column, and the name of the owner or person listing the same in another column, with the columns of acres and values footed up. Also stating the number of the school and road district in which such property and the owner thereof is situated: provided that where the district has no board of equalization, such assessment roll shall be delivered to the county auditor.

Source: PolC 1877, ch 28, § 26; SL 1881, ch 118, § 2; SL 1883, ch 98, § 1; CL 1887, § 1582; RPolC 1903, § 2101; RC 1919, § 6718; SDC 1939, § 57.0344.


10-6-39Form for real estate list.

The list required by § 10-6-38 shall be as nearly as practicable in the following form:

RETURN OF TAXABLE LANDS IN ________ COUNTY, SOUTH DAKOTA,

AS ASSESSED FOR THE YEAR 20____

Part of section

Section

Township

Range

Acres

Value

Owner's name

Source: PolC 1877, ch 28, § 26; SL 1881, ch 118, § 2; SL 1883, ch 98, § 1; CL 1887, § 1582; RPolC 1903, § 2101; RC 1919, § 6718; SDC 1939, § 57.0344.


10-6-40Equalization director's affidavit attached to real estate list.

Each director of equalization or deputy director shall take and subscribe an oath, which shall be certified by the county auditor or other officer administering the same, and attach to the return which he is required to make, in the following form:

I, __________, director of equalization for the ________________of ________________in __________ county, in the State of South Dakota, do solemnly swear (or affirm), that the return to which this is attached contains a correct description of each parcel of real property within such municipality, township, or assessment district, as far as I have been able to ascertain the same; that the value attached to each parcel in such return is, as I verily believe, the full and true cash value thereof; that in no case have I knowingly omitted to demand a statement of the description and value of all the real property which I am required by law to list, or in any way connived at any violation or evasion of any of the requirements of the law in relation to the listing and valuing of real property.

Source: SL 1899, ch 40, § 3; RPolC 1903, § 2102; RC 1919, § 6719; SDC 1939, § 57.0344; SL 1989, ch. 82, § 41; SL 1992, ch 60, § 2.


10-6-41
     10-6-41, 10-6-42.   Repealed by SL 1992, ch 80, §§ 49, 50.


10-6-43Looseleaf records and card systems authorized--Validation of records previously used.

The use of looseleaf books and records, lists, card systems, auxiliary and miscellaneous records, in lieu of the equalization director's or assessment books, as tax records, in the office of the county auditor and treasurer, is hereby authorized and the use of such looseleaf books and records, lists, card systems, auxiliary and miscellaneous records, prior to July 1, 1951, is hereby legalized and validated. The form of the tax assessment records herein authorized shall be approved by the secretary of revenue. The use of such records herein authorized prior to July 1, 1951, shall not be deemed or considered an irregularity or defect in any court in any proceeding to recover real or personal property sold for taxes, or to invalidate or cancel any tax sale certificate, tax deed, or other tax sale proceeding.

Source: SL 1951, ch 460; SDC Supp 1960, § 57.0352; SL 1989, ch. 82, § 41; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-44Delivery to boards of equalization of assessment books, lists, rolls and returns--Open to public inspection.

In districts having local boards of equalization each director of equalization shall, on or before the third Monday in March, annually make out and deliver to the clerk of the local board, or if there is no local board of equalization, then to the county auditor, the assessment books, lists, rolls, looseleaf books and records, lists, card system, auxiliary and miscellaneous records, and returns herein provided for. Such books, lists, rolls, and returns are open to public inspection by all interested persons, until the following Saturday.

Source: SDC 1939, § 57.0345; SL 1951, ch 436; SL 1969, ch 262, § 3; SL 1979, ch 66, § 5; SL 1989, ch 82, § 41; SL 1991, ch 84; SL 1994, ch 74, § 2; SL 2001, ch 49, § 2.


10-6-45
     10-6-45.   Repealed by SL 1992, ch 80, § 51.


10-6-46
     10-6-46, 10-6-47.   Repealed by SL 1972, ch 56, § 2.


10-6-48
     10-6-48.   Repealed by SL 1992, ch 80, § 52.


10-6-49
     10-6-49.   Repealed by SL 2011, ch 51, § 1.


10-6-50. Notice of assessment--Required information.

The director of equalization shall mail or transmit electronically a notice of assessment to each property owner not later than March first. The notice of assessment must contain:

(1)    A statement that property occupied by the owner or a parent of the owner may be eligible for tax relief by being classified as an owner-occupied single-family dwelling pursuant to §§ 10-13-39 through 10-13-40;

(2)    A statement that property owned and occupied by a veteran who is rated as permanently and totally disabled from a service-connected disability or the veteran's surviving spouse may be eligible for tax relief pursuant to §§ 10-4-40 and 10-4-41;

(3)    A statement that a dwelling specifically designed for use by a paraplegic as a wheelchair home that is owned and occupied by a paraplegic veteran, a veteran with the loss or loss of use of both lower extremities, or the veteran's surviving spouse may be eligible for tax relief pursuant to § 10-4-24.10;

(4)    A statement that a dwelling owned and occupied by a paraplegic or an individual with the loss or loss of use of both lower extremities may be eligible for tax relief pursuant to § 10-4-24.11; and

(5)    A statement that property owned by a citizen who reached sixty-five years of age or who is disabled may be eligible for tax relief pursuant to chapter 10-6A; and

(6)    Uniform information prescribed by the secretary of revenue.

Source: SL 1988, ch 88; SL 1989, ch 88, § 1; SL 1993, ch 86, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2012, ch 61, § 1; SL 2020, ch 40, § 1.


10-6-51Counties not in compliance--Basis of request for and issuance of certificate of compliance.

Any county not in compliance with the provisions of this chapter may request the secretary of revenue to issue a certificate of compliance if significant changes in market conditions occurred during the previous two years or if the county is in the process of a county-wide reappraisal, at least sixty percent of the properties in the county have been reappraised within the previous three years and the reappraisal is scheduled for completion without undue delay. The secretary may issue a certificate of compliance if he determines that the failure to comply with the standards was through no fault of the assessment practices in the county.

Source: SL 1990, ch 71, § 8; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-52
     10-6-52, 10-6-53.   Repealed by SL 2000, ch 42, §§ 17, 18.


10-6-54Repealed.

Source: SL 1993, ch 82, § 1; SL 2000, ch 42, § 19; SL 2003, ch 51, § 1; SL 2020, ch 39, § 9.


10-6-55Repealed.

Source: SL 1993, ch 82, § 2; SL 2000, ch 42, § 20; SL 2020, ch 39, § 9.


10-6-56. Boundaries of redevelopment neighborhood.

The board of county commissioners or the municipal governing body that approves the adoption of a reduced valuation pursuant to subdivision 10-6-35.2(7) shall, by ordinance, identify the exact boundaries of the redevelopment neighborhood where the reduced valuation will be available.

Source: SL 1993, ch 82, § 2A; SL 2020, ch 39, § 10.


10-6-57Standards for redevelopment neighborhood property within municipality.

Any property located in any redevelopment neighborhood which is located within the corporate limits of a municipality and valued pursuant to this chapter shall meet any standards as set by the governing body of the municipality.

Source: SL 1993, ch 82, § 4.


10-6-58
     10-6-58 to 10-6-65.   Repealed by SL 1998, ch 53, §§ 1 to 8.


10-6-66Classification of certain residential property.

Real property that is zoned residential which is platted and improved with the necessary infrastructure to allow for future residential construction and which is owned by the person or corporation who developed the real property is specifically classified for the purpose of taxation.

Source: SL 1993, ch 81, § 12.


10-6-66.1
     10-6-66.1.   Transferred to § 10-13-39.1.


10-6-67Valuation of certain residential property.

Property classified pursuant to § 10-6-66 shall be valued for taxation purposes in the usual manner. However, the board of county commissioners of the county where the property is located may, in the board's discretion, adopt any formula for assessed value to be used for tax purposes. The formula may include for any or all of the five tax years following the filing of the plat for the subdivision all, any portion or none of the assessed valuation for tax purposes. The assessed valuation during any of the five years may not be less than the assessed valuation of the property in the year preceding the first year of the tax years following the filing of the plat for the subdivision. The board of county commissioners of a county where property classified pursuant to § 10-6-66 is located may, in the board's discretion, if requested by the owner of the property, not apply the discretionary formula and the full assessment shall be made without application of the formula. In waiving the formula for the property of one owner, the board of county commissioners is not prohibited from applying the formula for subsequent property.

Source: SL 1993, ch 81, § 13; SL 2000, ch 42, § 21.


10-6-68
     10-6-68.   Repealed by SL 2000, ch 42, § 22.


10-6-69
     10-6-69.   Repealed by SL 1998, ch 50, § 1.


10-6-70
     10-6-70.   Transferred to § 10-21-36.


10-6-71
     10-6-71.   Transferred to § 10-21-37.


10-6-72
     10-6-72.   Transferred to § 10-21-38.


10-6-73
     10-6-73.   Transferred to § 10-21-39.


10-6-74
     10-6-74.   Repealed by SL 2008, ch 44, § 4, eff. July 1, 2014.


10-6-75Notice to real property owners of certain increases in assessed valuation--Contents--Promulgation of rules.

If the assessed valuation of any real property increases by more than twenty percent in a year, the director of equalization shall provide written notice to the property owner, unless the property was subject to an addition, improvement, or change in use or classification. The written notice shall provide:

(1)    Notification of the current assessed valuation, the prior year's assessment, and the percentage increase of the assessed valuation;

(2)    A statement that the director of equalization will provide to the property owner, upon request, sales of comparable property or other information supporting the increased assessed valuation; and

(3)    Information about the appeal process.

The secretary of the Department of Revenue may promulgate rules, pursuant to chapter 1-26, concerning the form and content of the notice.

Source: SL 2007, ch 46, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


10-6-76Use of arms-length sales of nonagricultural and owner-occupied property to value other real property.

If any nonagricultural or owner-occupied property sells for more than one hundred fifty percent of its assessed value after November 1, 2008, the sale of such property shall be used to value other real property if the sale is an arms-length transaction. However, for the taxable valuation for the taxes payable in 2011, 2012, 2013, 2014, and 2015, no nonagricultural or owner-occupied property's valuation may increase more than five percent per year because of such sales. The sales of nonagricultural and owner-occupied property may only be used in a sales ratio study as allowed by this section.

Source: SL 2008, ch 44, § 1.


10-6-77Limitation on increase and decrease of taxable value of cropland and noncropland.

For the taxes payable in 2014, 2015, 2016, 2017, 2018, and 2019, the total taxable value of cropland within any county may not increase or decrease more than:

(1)    Fifteen percent in any year, if the county is less than thirty percent from its full agricultural income value;

(2)    Twenty percent in any year, if the county is thirty percent or more but less than fifty percent from its full agricultural income value; and

(3)    Twenty-five percent in any year, if the county is fifty percent or more from its full agricultural income value.

For the taxes payable in 2014, 2015, 2016, 2017, 2018, and 2019, the total taxable value of noncropland within any county may not increase or decrease more than:

(1)    Fifteen percent in any year, if the county is less than thirty percent from its full agricultural income value;

(2)    Twenty percent in any year, if the county is thirty percent or more but less than fifty percent from its full agricultural income value; and

(3)    Twenty-five percent in any year, if the county is fifty percent or more from its full agricultural income value. (This section is repealed effective July 1, 2017 pursuant to SL 2008, ch 44, § 3, as amended by SL 2009, ch 40, § 4.)

Source: SL 2008, ch 44, § 2; SL 2009, ch 40, § 3; SL 2012, ch 62, § 1.


10-6-78Consideration of federal income tax credits in assessing property prohibited.

No county director of equalization may consider any federal income tax credit that is extended to the property owner under sections 38, 42, and 47 of the Internal Revenue Code as of January 1, 2001, for the purpose of assessing any real property. The provisions of this section are effective retroactively to November 1, 2008.

Source: SL 2009, ch 42, § 1, eff. Nov. 1, 2008.


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