An Act to revise the property tax exemption amount for certain agricultural property.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 10-4-13.1 be AMENDED.
10-4-13.1. Agricultural structures specially classified--Amount exempt from taxation--Relative defined.
Buildings and structures, other
than normally occupied dwellings on agricultural land and automobile
garages or portions of buildings used for that purpose, which
are used
exclusively for agricultural purposes and situated on agricultural
land,
are hereby specifically classified for tax purposes as agricultural
property. Ten
One
hundred thousand
dollars of the full and true value of all buildings located upon each
building site and used in connection with the taxpayer's agricultural
pursuits is exempt if there is a dwelling which
that
is occupied by
an owner or relative of an owner or a beneficiary of a trust or a
trustee for at least six months of a year but not necessarily on the
assessment date. Such
The
dwelling shall
be located on agricultural land and classified as nonagricultural
property under 10-6-31.
The application requirement in 10-4-15
does not apply to this section. If an owner is a corporation, trust,
or a partnership, each stockholder, member, beneficiary, trustee, or
partner who resides on
such
the property
shall be an owner pursuant to this section. For the purposes of this
section, a relative is a person who is related within the third
degree of kinship. However, no
a
building site
may not
receive more
than one
ten
a
one-hundred-thousand-dollar
exemption pursuant to this section. For the purposes of this section,
a manufactured home or a mobile home is a dwelling.
Beginning on January 1, 2023, and again on January first of each year thereafter, the exemption value shall be adjusted by the percentage change in the cost of living. The change in the cost of living shall be measured by the percentage change as of August of the immediately preceding year over the level as measured as of August of the previous year of the Consumer Price Index (all urban consumers, U.S. city average for all items) as published by the U.S. Department of Labor, with the amount of the change, if any, rounded to the nearest dollar. The secretary of the Department of Revenue shall publish the adjusted exemption value for the forthcoming year on the department's internet website by October fifteenth of each year, and the adjusted exemption value becomes effective on January first of the following year.