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Published August 31, 2011, 09:28 AM

SD panel studies changes in farm property taxes

PIERRE, S.D. — A state task force has agreed to look at substantial changes in South Dakota's 2-year-old system for determining the value of agricultural land for property tax purposes.

PIERRE, S.D. — A state task force has agreed to look at substantial changes in South Dakota's 2-year-old system for determining the value of agricultural land for property tax purposes.

Property taxes used to be based on the selling prices of comparable farm land, but that system was scrapped because there were not enough agricultural sales to set a valid market price. Taxable value is now based on income produced by the land.

The taxable value of pasture land is based on average cash rent over an 8-year period. The taxable value of cropland is calculated according to revenue based on an 8-year average of yield and crop prices.

The task force decided to look at ways to speed up changes in taxable values and to use cash rent to set cropland values.

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