Transcript Ag Status
Is “Ag Status” Right for You? Mindy Hubert [email protected] Doug Pavel [email protected] Benefit of “Ag Status” • Can help lower your property taxes, sometimes very significantly – Depends on your county tax levy – Example: $14 tax/$1000 assessed for ag land vs. $16 tax /1000 assessed value for non-ag Benefit of “Ag Status” • More significantly, depends on how your property is assessed: – Non-ag (owner-occupied) vs. ag property Benefit of “Ag Status” • Non-ag property is assessed at market value • Ag property is assessed based on a productivity formula – Almost always significantly less than Market Value • most notable on properties valued high (Black Hills) Example Property Description Assessment Tax Wall or Black Hills, 100ac Wall, 100ac ag land @ $200/ac $200*100ac=$20,000*.014 (levy rate) =$280 non-ag @ $1000*100ac=$100,000 $1000/ac *.016 (levy rate) =$1600 Black Hills, 100ac non-ag @ $5000/ac $5000*100ac=$500,000 *.016 (levy rate) =$8000 Qualifying for Ag Status • SDCL 10-6-31.3 • Two of three following criteria must be met: 1. (State Requirement) Minimum of 20 acres owned • Counties can require up to 160 acres Minimum Acreage Size County Minimum Size (ac) Butte 145 Lawrence 41 Pennington 40 Meade 73 Custer 40 Fall River 160 Harding 160 Jackson 70 Criteria-continued 2. 33.3% of total family gross income is ag • Use gross ag income – 1040 tax form to prove total non-ag income – Copy of schedule F to prove total ag income – Only 1 year’s worth of proof needed (Pennington) Criteria-continued 3. Acreage is devoted to: • Raising crops, timber or fruit trees • Rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock • Production of bees and apiary products, or horticulture • Horses generally not considered Ag (thought of as a tool to conduct ranch work)…like a ranch truck or border collie Criteria • Hobby Ag vs. Production Ag: o Principal use of the property is ag production with “Intent to produce income” o A 40 acre property with a home, garage, and 20 sheep does not meet this criteria. o A 40 acre property with a home, garage, and 200 head feedlot does. Directors of Equalization: http://www.sdcounties.org/ Shannon Rittberger, Pennington [email protected] 505 Kansas City Street Rapid City, SD 57701 (605) 394-2175 Kirk Chaffee, Meade [email protected] 1300 Sherman St., Suite 222 Sturgis, SD 57785 (605) 347-3818 Directors of Equalization Allison Jensen, Custer [email protected] 420 Mt Rushmore Rd Custer, SD 57730 (605) 673-8170 Polly Odle, Butte [email protected] 839 5th Ave. Belle Fourche, SD 57717 (605) 892-3950 Directors of Equalization Terri Halls, Fall River [email protected] 906 N. River St. Hot Springs, SD 57747 (605) 745-5136 Harding County 410 Ramsland St. Buffalo, SD 57720 (605) 375-3351 Directors of Equalization Tim Hodson, Lawrence [email protected] 90 Sherman Street Deadwood, SD 57732 (605)-578-3680 Kyle Helseth, Minnehaha [email protected] 415 N. Dakota Ave. Sioux Falls, SD 57104 (605) 367-4228 Directors of Equalization Haakon County 140 S. Howard Philip, SD 57567 (605) 859-2627 Jackson County 1 Main St. S. Kadoka, SD 57543 (605) 837-2122 May Help Qualify for Ag Status (Pennington, Fall River, Custer) • Tree Farm System http://www.treefarmsystem.org • 105 certified American Tree Farms in SD • Must have an approved Management Plan for property Inspections every 5 years • Can help prove Principal Use of acreage is Timber • John Hinners, [email protected] South Dakota Department of Agriculture P.O. Box 940 Huron, SD 57350-0940