is “ag status” right for you?
DESCRIPTION
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 landvs. - PowerPoint PPT PresentationTRANSCRIPT
Is “Ag Status” Right for You?Mindy Hubert
Doug [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 landvs.
$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)
ExamplePropertyDescription
Assessment Tax
Wall or Black Hills,100ac
ag land @ $200/ac $200*100ac=$20,000*.014 (levy rate)=$280
Wall, 100ac non-ag @ $1000/ac
$1000*100ac=$100,000 *.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 SizeCounty Minimum Size
(ac)Butte 145
Lawrence 41
Pennington 40
Meade 73
Custer 40
Fall River 160
Harding 160
Jackson 70
Criteria-continued2. 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-continued3. 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, [email protected] 505 Kansas City StreetRapid City, SD 57701(605) 394-2175
Kirk Chaffee, Meade [email protected] Sherman St., Suite 222 Sturgis, SD 57785(605) 347-3818
Directors of EqualizationAllison Jensen, [email protected] Mt Rushmore RdCuster, SD 57730 (605) 673-8170
Polly Odle, Butte [email protected] 5th Ave.Belle Fourche, SD 57717(605) 892-3950
Directors of Equalization Terri Halls, Fall [email protected] N. River St.Hot Springs, SD 57747(605) 745-5136
Harding County410 Ramsland St.Buffalo, SD 57720(605) 375-3351
Directors of Equalization Tim Hodson, [email protected] 90 Sherman StreetDeadwood, SD 57732(605)-578-3680
Kyle Helseth, [email protected] N. Dakota Ave.Sioux Falls, SD 57104(605) 367-4228
Directors of Equalization Haakon County140 S. HowardPhilip, SD 57567(605) 859-2627
Jackson County1 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 AgricultureP.O. Box 940Huron, SD 57350-0940