PIERRE, S.D. (AP) — A South Dakota task force is studying whether any changes are needed in a new system for determining the value of agricultural land for property tax purposes.
The task force planned to identify possible changes in the system after hearing reports from tax experts Monday at a meeting in Pierre.
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 price of crops.
Copyright 2011 The Associated Press.