10-6-112. Classification of agricultural land--Criteria.
For tax purposes, land is agricultural land if the land's 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 land also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural land and is under the same ownership. For purposes of this section, the term, principal use, means the primary use to which the land is devoted. This definition is intended to reference the primary and predominant use of the land as opposed to a mere secondary and incidental use.
In addition, to be classified as agricultural land for tax purposes, the land must meet one of the following criteria:
(1)In three of the previous five years, an annual gross income of at least two thousand five hundred dollars is derived from the pursuit of agriculture from the land, excluding transactions between:
(a)An individual and anyone with whom the individual shares a residence;
(b)An individual and an entity in which the individual and anyone who shares a residence with the individual have an aggregate ownership interest of more than fifty percent; or
(c)Entities that are members of the same controlled group, as defined in § 10-45-20.3.
The owner shall produce to the director of equalization any writing that is requested by the director for the purpose of verifying that the requirement of this subdivision has been satisfied; or
(2)Subject to the board of county commissioners increasing the minimum acre requirements, the land consists of at least twenty acres or is a part of a management unit of not less than eighty acres. The board of county commissioners may not increase the minimum acre requirements of this subdivision to an amount greater than one hundred sixty acres.
For the purposes of this section, the term, management unit, means any two or more 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, 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; SL 2021, ch 44, §§ 13, 44; SL 2021, ch 45, § 1.
Structure South Dakota Codified Laws
Chapter 06 - Annual Assessment Of Property
Section 10-6-101 - Definition of terms.
Section 10-6-102 - Mill levy defined--Substitution.
Section 10-6-103 - One mill defined--Substitution.
Section 10-6-104 - Fair market value and full and true value defined.
Section 10-6-105 - Period during which assessment made--Date of assessment.
Section 10-6-108 - Statement of real property required of taxpayers.
Section 10-6-109 - Viewing of property--Inspection of records--Recording assessed value.
Section 10-6-110 - Classification of property--Notation by director.
Section 10-6-111 - Agricultural land taxed without regard to zoning.
Section 10-6-112 - Classification of agricultural land--Criteria.
Section 10-6-113 - Property tax freeze authorized for agricultural property of beginning farmer.
Section 10-6-117 - Agricultural land--Riparian buffer strip classification--Criteria.
Section 10-6-120 - Property not used for agriculture separately assessed.
Section 10-6-121 - Minimum and maximum median sales to assessment ratio.
Section 10-6-122 - Maximum coefficient of dispersion.
Section 10-6-123 - Distinction between agricultural and nonagricultural real property.
Section 10-6-124 - Promulgation of rules--Purposes.
Section 10-6-125 - Assessed value of inundated farmlands--Classification.
Section 10-6-127 - Agricultural land to be assessed based on agricultural income value.
Section 10-6-128 - Agricultural income value--Determination--Database of cropland data.
Section 10-6-129 - Factors used for percentage of annual earning capacity.
Section 10-6-130 - Soil classification--Land categorization--Director adjustments.
Section 10-6-131 - Agricultural income value for county--Adjustment of assessed value by director.
Section 10-6-132 - Classification of buildings and structures.
Section 10-6-133 - Fair market value of agricultural land.
Section 10-6-134 - Agricultural Land Assessment Implementation and Oversight Advisory Task Force.
Section 10-6-137.1 - Discretionary formula for reduced taxation of new residential structures.
Section 10-6-138 - Municipal adoption of reduction for new property.
Section 10-6-139 - Adoption of assessed value formula by governing board of improvement district.
Section 10-6-141 - Boundaries of redevelopment neighborhood.
Section 10-6-142 - Standards for redevelopment neighborhood property within municipality.
Section 10-6-143 - Classification of certain residential property.
Section 10-6-144 - Valuation of certain residential property.
Section 10-6-147 - Petition for reversal of director's decision--Notice and hearing.
Section 10-6-148 - Railroad and highway rights-of-way deducted in valuing land.
Section 10-6-149 - Real estate list included in assessment lists, rolls, and book--Contents.
Section 10-6-150 - Form for real estate list.
Section 10-6-151 - Equalization director's affidavit attached to real estate list.
Section 10-6-152 - Records of county auditor or treasurer authorized as tax records.
Section 10-6-153 - Delivery of updated records to boards of equalization--Open to public inspection.
Section 10-6-154 - Notice of assessment--Required information--Promulgation of rules.
Section 10-6-157 - Consideration of federal income tax credits in assessing property prohibited.