State Tax Laws > Property Taxes > Summary > South Dakota

For the complete text of South Dakota statutes and other property tax information please refer to the South Dakota Department of Revenue.

Property Classification:

South Dakota does not use a classified property tax system where property is assigned to different classes for purposes of assessment at different percentages of assessed value. The only basic distinction that the law makes is between agricultural property, which is subject to special valuation rules, and nonagricultural property. South Dakota law contains no specific provisions pertaining to forests.

Agricultural property includes all property used exclusively for agricultural purposes which is not handled for resale by wholesale or retail dealers. It includes all land used exclusively for agricultural purposes, both tilled and untilled, the improvements on such land, other than buildings and structures, and the livestock and machinery located and used on such agricultural land.

Criteria for classification of land as agricultural: (Sec. 10-6-31.3)

For tax purposes, land is agricultural land if it meets two of the following three criteria:

(1) At least 33 1/3% of the total family gross income of the owner is derived from the pursuit of agriculture as defined in subdivision (2) of this section or it is a state-owned public shooting area or a state-owned game production area as identified in Sec. 41-4-8 and it is owned by the department of game, fish and parks;

(2) Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding and management of farm livestock, poultry, fish or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership;

(3) It consists of not less than 20 acres of unplatted land or is a part of a contiguous ownership of not less than eighty acres of unplatted land. The same acreage specifications apply to platted land, excluding land platted as a subdivision, which is in an unincorporated area. However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

Valuation and Assessment:

The capacity of land in agricultural use to produce agricultural products is determined on the basis of the average yields under natural conditions, in the case of land producing crops or plants.

Agricultural land in each county shall be divided into the eight classes defined by the United States Department of Agriculture's soil conservation service as published in its soil survey for each county. The county director of equalization shall, based on the agricultural lands soil survey classification, determine a value for each soil type. The value for each soil type shall be determined from sales of similar land based upon its soil survey classification. The sales used shall be sales of agricultural land that are sold for agricultural purposes. (Sec. 10-6-33.7)

Severance or Yield Tax:

The state of South Dakota does not have a severance or yield tax on timber or timber products.