SIOUX FALLS, S.D. (KELO AM) - Several farm groups are grumbling over the rise in valuations and taxes on property at a time when commodity prices are low.
State Senator Jason Frerichs of Wilmot is a member of the property tax oversight committee and he says property taxes will come to the forefront in next year's legislature.
The legislature made the change from taxes based on land sale to productivity a few years back. Frerichs says more updates are underway.
He says researchers at South Dakota State University are doing updates on soil tables. He says advances have allowed crops to be raised on marginal soil that typically had been used as grassland. He says the updates will help policymakers make informed decisions on a property's potential productivity.
Frerichs says landowners will have to be aware of changes in assessments and valuations in their county. He says the productivity model continues to work but he says if there are significant increases in taxes, property owners should consult with the state's ag land task force.
He says the state is watching the conversion of grassland to crops due to the property tax formula.
Frerichs says it's troubling when tax policy dictates farming practices. He says if grassland is taxed as cropland, the producer may feel the need to put crops down to justify the higher taxes. He says it's best if producers make decisions based on their operations and grass may be a better fit.
Frerichs says the committee will meet several times this year, and may bring some bills to next year's legislature.