STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

May 11, 1971

Keith R. Smith, State's Attorney
Meade County
Sturgis, South Dakota 57785

OFFICIAL OPINION NO. 71-15

Assessment and Taxation of Livestock

Dear Mr. Smith:

You have presented the following factual situation:

X purchased livestock at sales rings in Faith, Sturgis, St. Onge, South Dakota, consisting of four bulls and 349 yearling heifers. These livestock were purchased in March, April and May of 1970. The cattle were owned by persons other than X on February 1, the assessment date for said cattle. The cattle which were purchased at the livestock exchanges by X were sold by ranchers living and operating in the State of South Dakota and all of the livestock are from the State of South Dakota. It is not known whether or not the cattle which were purchased at the livestock exchange were listed on the personal property tax returns of the sellers and it is not known whether or not the taxes have been paid on the cattle by the owners on the assessment date of February 1.

X owns, operates and resides on a ranch in Meade County, South Dakota, and the cattle purchased at the livestock exchange are on this ranch.

Concerning this situation, you hve asked the following three questions:

1. Who is obligated to list these cattle on the assessment date and pay the tax thereon?

2. If the owner on February 1 fails to list the cattle, is there any obligation on the part of the purchaser at the sales ring to determine whether the livestock has been listed by the owner on February 1 and the tax paid thereon?

3. If the owner on February 1 did not list the livestock on his personal property return and did not pay the taxes thereon and the assessor ascertains that these livestock were not listed and that the tax had not been paid, who, then, is liable for the tax, X or the owner of the cattle as of February 1?

The assessment laws provide for a day on which to make assessments, SDCL 10-6-2, states in effect that personal property subject to taxation shall be listed and assessed annually and during the first six months of each year but the value of such property is to be determined according to its value on the first day of February preceding the assessment. Our Supreme Court has accepted the rule on this that "all tax laws have to fix upon some particular date in the year at which to determine the taxability as well as the ownership and value of property for purposes of assessment and taxation." McFarland v. Keenan, 77 SD, 39,46; 84 NW 2d 884 (1957). Quoting from Martin County v. Drake, 40 Minn. 137,41 NW 942. This rule is equally applicable to livestock which were in the state on assessment day notwithstanding the provisions of SDCL 10-8-2, which relates only to livestock which are brought into the state following the legal assessment day. In this connection see the Attorney General's Opinion at 1967-68 AGR 453.

In view of this situation, it is my opinion that the owner of the livestock on February 1st was the one who had the duty to list the same for assessment purposes. It, therefore, follows that the provisions of SDCL 10-5-13 are not applicable in requiring that a person be able to establish by duly authenticated certificate of assessment that the property or any part thereof has been lawfully listed and assessed in any other taxing district in the state so that he is held for taxation of such property or any part thereof. It was the duty of the owner on February 1st and not the duty of the subsequent purchaser to assess this property for tax purposes.

Your questions are therefore specifically answered as follows:

1. The owner of the livestock on February 1st is required to list the cattle for tax purposes.

2. There is no obligation on the part of the purchaser to determine whether the livestock have been listed by the owner on February 1st, and it is made specifically the duty of the director of equalization to add omitted property to the assessment rolls at any time the same is discovered, SDCL 10-3-24.

3. The assessor in ascertaining that the livestock were not listed and the tax had not been paid should add such livestock as omitted property to the assessment rolls of the individual who was the owner on February 1st. A lien for taxes exists on all property of the person against whom the taxes are assessed from and after January 1st in each year, SDCL 10-19-3. This lien does not follow the property into the hands of the purchaser, 1943-44 AGR 497.

Respectfully submitted,

Gordon Mydland
Attorney General