Farmland Property Tax
By Travis Berg
Agriculture and crop land could see a tax hike. A land's taxable value is based on its ability to produce income. Last year, ten percent annual caps were placed on tax value. However, Republican Senator Larry Rhoden says the caps didn't account for inflationary production. That caused land tax value to fall below actual value. Now, legislators are proposing up to 25 percent increases in some areas. Opponents of last year's measure say outdated market rates caused the problem. South Dakota Wheat Incorporated Executive Director Rick Vallery opposed the initiative last year, but he supports this session's bill. He says updated data brings market balance across the state.
"The Property Tax Oversight committee reviewed that data. They put together the bill. And what you have before you is going to be a good transition within what we are working on right now, and will work and make the property tax system more equal- not within the county but within the state which is so important to remember," Valarie says.
The bill unanimously passed the House Agriculture and Resources Committee. It goes next to the House floor.
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