May 7, 1975

Mr. Jack Klauck
State's Attorney
Pennington County
Rapid City, South Dakota 57701

OFFICIAL OPINION NO. 75-82

Taxation of implement licensed vehicles

Dear Mr. Klauck:

You have requested my official opinion on the following factual situation:

A construction company purchased a crane mounted on a chassis and brought the same into South Dakota. Vehicle registration tax pursuant to § 32-5-31 was paid on the chassis and use tax was paid on the value of the crane. The owner licensed the same under § 32-5-38, the Implement License Law, in August, 1974.

Concerning this you have inquired:

1. Does the Director of Equalization have the authority to put this property on the tax roll in August?

2. If the answer to 1 is in the affirmative, does the county then have authority to assess the property for the balance of the year?

SDCL 32-5-41 requires that motor vehicles registered under the implement license statute shall be assessed and taxed as any other personal property. It further provides, "no application for such license may be accepted by any county treasurer until the motor vehicle described on such application has been placed on the assessment rolls for the current licensing year, and all ex­isting, and prior year, taxes on such vehicle have been paid."

This section was originally enacted as chapter 148, laws of 1933. In addition to describing the type license provided, "all motor vehicles registered under the provisions of this act shall be assessed and taxed as any other personal property." This provision remained unchanged until 1963 when the Legislature adopted chapter 248. In addition to the requirement for the assessment and taxation as other than personal property there was added the provision presently in the law as set forth above.

The licensing year for vehicles is April 1 to the next March 31 (§ 32-5-4). The tax assessment year commences on February 1 and ends January 31 the suc­ceeding year. See 1949-50 AGR 237. Value and location are, however, to be fixed as of the assessment date, see McFarland v. Keenan 77 S.D. 39, 42, 84 N.W. 2d 884.

It is my opinion, therefore, that while there is a requirement for motor vehicles licensed under the implement statute to be placed on the assessment rolls for the current licensing year there is no requirement, or even authority for the actual assessment for tax purposes of such units after February 1 assessment date, unless the same had a tax sit us in South Dakota on that date. The provision of § 32-5-41 that all "existing taxes" must be paid con­templates those lawfully levied subsequent to a valid assessment on February 1.

The same, however, would be valued on the next assessment date since that is within the licensing year for which the license was issued and which ends on March 31. Thereafter, any renewal of the license plate must be preceded by the payment of any taxes which have been lawfully levied and are then due and payable.

In my opinion the requirement for the payment of taxes does not change the basic proviso of the section that such vehicles shall be assessed and taxed as any other personal property. It should be noted, however, that after a valid assessment is made, certain distress provisions may be applicable to proper­ty about to be removed from the county (§ 10-20).

The specific answer to your question number 1, is YES. Number 2, NO; the assessment would be made and tax levied as on any other personal property.

Respectfully submitted,

WILLIAM J. JANKLOW
ATTORNEY GENERAL

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