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Panel Wants Information On Cropland Taxable Value

November 8, 2010, 4:47 PM

PIERRE, SD - A South Dakota task force wants to know whether the taxable value of cropland is likely to increase too much under a new system for determining the value of agricultural land for property tax purposes.
 
The taxable value of agricultural land used to be set based on the selling price of comparable land. The new system bases the taxable value of cropland and grassland on their ability to produce income.

A task force overseeing the new system has voted to have the state Revenue Department perform additional calculations to see if the formula now used will cause an excessive increase in the taxable value of cropland.  Task force members point out that an increase in taxable value can be offset by a decrease in the levies, or tax rates applied to that value.

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