SD senator: Change valuation on ag landPIERRE — Sen. Al Novstrup is trying again to change the tax-valuation method for agricultural property.
By: Bob Mercer, Republic Capitol Bureau
PIERRE — Sen. Al Novstrup is trying again to change the tax-valuation method for agricultural property.
Novstrup, R-Aberdeen, has fought against the production-income system for years. His latest measure, SB 210, would return to the previous system of assessing taxable value of agricultural land based on market values of comparable properties.
Novstrup argues that tax burden has shifted from ag property to commercial property and owner-occupied homes. His latest plan would raise an estimated $92 million more in taxes from agricultural property. He said the average increase per acre would be $2.10.
Novstrup would reallocate $46 million to reduce taxes on all types of property including agriculture, give $8 million to technical institutes, give $4 million to K-12 career and technical education programs and give $34 million to K-12 schools.
The estimate that Novstrup is providing other legislators puts that amount at $261 more per student. He said he isn’t seeking a matching amount of state aid. His proposed arrangement would require a readjustment of the ratio between state aid and local property-tax effort.
Novstrup’s new details aren’t contained in the original version of his bill. A hearing date hasn’t been set yet.