Marshall County Director of Equalization Shannon Lee wants to give area landowners a heads up.
When the county’s tax assessment notices are mailed out March 1, ag landowners will see an average increase ranging from 5-25 percent depending on the individual parcel.
“Ag land will be increasing more significantly for the 2013 assessment year largely due to House Bill 1003, which was passed by the 2012 Legislature, and due to increases in crop revenues,” said Lee.
The bill, passed last year, removed the 10 percent annual increase limit and now allows up to a 25 percent increase on the total taxable value of cropland within a county. The percentage increase depends on how far the county assessments fall below the full agricultural income value of the land.
That agricultural value is found by averaging the crop revenues from the last eight years (2004-2011) with the highest and lowest years thrown out. Formulas are then applied to derive a dollar/acre figure and applied to the parcel rating (soil quality). State-wide that value rose 16.7 percent for cropland and 1.47 percent for non-cropland. In Marshall County, it rose 15 percent for cropland and for non-cropland three percent.
SDSU, USDA, and NASS provide data to the South Dakota Department of Revenue to establish the crop revenue. The use of comparable sales is no longer used in ag land assessment.
For 2013, the average cropland taxable dollar per acre in Marshall County is $1215, Day County is $916, Brown County is $1093 and Roberts County $1360.
“Crop revenues have been increasing, and we have been behind where we should be in ag land valuation due to the previous 10 percent increase limitation,” noted Lee.
Lee said that Marshall County is kind of in the middle of the pack compared to other counties around the state on increases.
Although Marshall County, along with a number of other counties, will see large increases in ag land valuation, Lee said that does not necessarily mean that the tax will increase by that same percentage.
“There are several factors such as levies, school and county budgets, and levels of assessments that all factor into the equation,” she said.
Sales continue to be used to determine an assessment to sales ratio for non-ag property. Marshall County’s small acreages, lake developments, and rural commercial property will also see increases in valuation for 2013. Lee said property owners should notify her office or local boards of any buildings that have been removed.
Local Boards of Equalization will convene March 18-22 and County Boards of Equalization will meet starting April 9. Appeal deadlines will be indicated on assessment notices.
Lee said a re-appraisal of Britton City is also planned to begin this summer, and she indicated it will likely be a two-year process. Officials will measure and do a walk-through of every residence. The last time a re-appraisal was done in Britton was 2004. Property owners should look for additional notification later this spring.
Anyone with questions on valuation in Marshall County may contact Lee at 605-448-5291 or email her at email@example.com.