Rural Lobbyist: Senate Bill 3 passes committee, redefines ag land classification criteria.

January 28, 2016 – By #South Dakota Farmer Union

 Senate Bill 3 was passed in the Senate Agricultural and Natural Resources Committee on Thursday. The bill was one of multiple bills that was written at the request of the Agricultural Land Assessment Implementation and Oversight Advisory Task Force. Titled

“An act to revise the income criteria for determining if property is classified as agricultural land for property tax purposes,” the legislation makes five changes to current criteria for classification of agricultural property.

1. The bill eliminates the requirement stating at least thirty-three and one-third percent of the total family gross income of the owner is derived from the pursuit of agriculture. In its place, the new language states that “in three of the previous five years, a gross income is derived from the pursuit of agriculture.”

2.The second change eliminates language that the land can be a state owned public shooting area or a state-owned game production area as managed by the Department of Game, Fish, and Parks.

3. The bill adds language that states the land must be at least ten percent of the taxable valuation of the bare land assessed as agricultural property, excluding any improvements.

4. The language also establishes that at least $2,500 of gross income is annually derived from the pursuit of agriculture form the land and if there is a crop share arrangement, the gross income from the land of both the landlord and tenant shall be combined and used to meet the criteria.

5. The last change made in the bill eliminates the “contiguous” standard and replaces it with the term(s) “management unit.” A management unit is defined as any parcel 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 principals uses. No parcel less than twenty acres within a management unit may be more than twenty air miles from the nearest other parcel within the management unit.

The bill received a 7-1 vote in favor of the legislation and awaits a vote on the Senate floor.

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Last Modified: 01/28/2016 7:25:00 pm MST