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Is “Ag Status” Right for You?

Is “Ag Status” Right for You?. Mindy Hubert mindy.hubert@sdstate.edu Doug Pavel buttevistafarm@dishmail.net. 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.

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Is “Ag Status” Right for You?

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  1. Is “Ag Status” Right for You? Mindy Hubertmindy.hubert@sdstate.edu Doug Pavel buttevistafarm@dishmail.net

  2. 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

  3. Benefit of “Ag Status” • More significantly, depends on how your property is assessed: • Non-ag (owner-occupied) vs. ag property

  4. 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)

  5. Example

  6. Qualifying for Ag Status • SDCL 10-6-31.3 • Two of three following criteria must be met: • (State Requirement) Minimum of 20 acres owned • Counties can require up to 160 acres

  7. Minimum Acreage Size

  8. Criteria-continued • 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)

  9. Criteria-continued • 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

  10. Criteria • Hobby Ag vs. Production Ag: • Principal use of the property is ag production with “Intent to produce income” • A 40 acre property with a home, garage, and 20 sheep does not meet this criteria. • A 40 acre property with a home, garage, and 200 head feedlot does.

  11. Directors of Equalization: http://www.sdcounties.org/ Shannon Rittberger, Penningtonshannonr@co.pennington.sd.us505 Kansas City StreetRapid City, SD 57701(605) 394-2175 Kirk Chaffee, Meadedoe@meadecounty.org1300 Sherman St., Suite 222 Sturgis, SD  57785 (605) 347-3818

  12. Directors of Equalization Allison Jensen, Custerajensen@custercountysd.com 420 Mt Rushmore RdCuster, SD 57730 (605) 673-8170 Polly Odle, Butte polly@buttesd.org 839 5th Ave.Belle Fourche, SD 57717 (605) 892-3950

  13. Directors of Equalization Terri Halls, Fall Riverfrdoe@gwtc.net 906 N. River St.Hot Springs, SD  57747(605) 745-5136 Harding County 410 Ramsland St.Buffalo, SD 57720 (605) 375-3351

  14. Directors of Equalization Tim Hodson, Lawrence thodson@lawrence.sd.us 90 Sherman Street Deadwood, SD 57732 (605)-578-3680 Kyle Helseth, Minnehaha equalization@minnehahacounty.org 415 N. Dakota Ave. Sioux Falls, SD 57104 (605) 367-4228

  15. Directors of Equalization Haakon County 140 S. HowardPhilip, SD 57567 (605) 859-2627 Jackson County 1 Main St. S.Kadoka, SD 57543 (605) 837-2122

  16. 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, John.Hinners@state.sd.usSouth Dakota Department of AgricultureP.O. Box 940Huron, SD 57350-0940

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