Rural Lobbyist: Actual Use Put On Hold As SB 4 Is Tabled.

February 19, 2016 – By #South Dakota Farmer Union

 The Senate Ag and Natural Resources Committee was set to hear testimony on Senate Bill 4, a bill to redefine certain ag land as non-cropland. For many, this legislation is known as actual use taxation.

Currently there is a debate in the agricultural community about which form of taxation is best. In the status quo we have what is referred to as highest and best taxation. This means that taxes on agricultural land are based on its highest potential productivity. For example, if you have a piece of land with highly rated soils for growing corn, yet you decide to use that land for grazing cattle, you will be taxed based on the potential for corn production.

With SB 4 you would be taxed based on the actual use and the land would be considered non-cropland. However the committee only heard the testimony of one individual on Tuesday, the bill sponsor Senator Jim Peterson. Senator Peterson educated the committee on why the bill is needed in South Dakota. He spoke about the terrible imbalances, especially West River, regarding the taxation on land used for grazing and other non-cropping purposes.

To conclude his testimony, Senator Peterson requested that the committee table the bill. He explained that a House bill, passed through appropriations, will be used to update the soil tables in every county in South Dakota. With that information we will have scientific data to back up the claims made with SB 4. At that time the legislature should have all the justification it needs to pass such legislation. 

The committee obliged Senator Peterson’s request and ultimately tabled the bill by a vote of 6-2.

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Last Modified: 02/19/2016 5:32:04 pm MST