Ag land measure OK’d by Senate
PIERRE -- A proposal to loosen the criteria that define agricultural land for property tax purposes passed the South Dakota Senate Tuesday afternoon.
PIERRE - A proposal to loosen the criteria that define agricultural land for property tax purposes passed the South Dakota Senate Tuesday afternoon.
With the 30-5 vote, it moves to the House for consideration.
Now, two of three criteria have to be met for property to be classified as agricultural:
• That the principal use of the land is for agriculture.
• That in at least of three of the five previous years, a gross income of at least 10 percent of the taxable value of the land was derived and that the income was at least $2,500.
• That the parcel is at least 20 unplatted acres or part of a management unit that is at least 80 acres.
Under the proposal, the principal use criteria would become mandatory and the income criteria would shift to either/or instead of both.
In other words, only the $2,500 or the gross income threshold would have to be met.
Property taxes are lower on ag land in South Dakota.
Sen. Gary Cammack, R-Union Center, said the bill makes it tougher to game the system.
The former Meade County commissioner said he hopes it helps counties better define ag land.