April 4, 1985

Mr. Greg Protsch 
Miner County State's Attorney 
Post Office Box M 
Howard, South Dakota 57349

OFFICIAL OPINION NO. 85-15

Exemption of agricultural structures from taxation

Dear Mr. Protsch:

You have asked for an official opinion on the following factual situation:

FACTS: 

A taxpayer who owned a parcel of agricultural land with agricultural structures and a dwelling classified as non-agricultural property had moved and rented the dwelling to a person who was not a relative or employee of the taxpayer.  The taxpayer used the agricultural structures for his own agricultural purposes.  The renter occupied the dwelling on the assessment date for the 1983 tax year.  The Director of Equalization did not exempt any portion of the agricultural structures from taxation for that tax year.  The taxpayer subsequently filed an application for abatement or refund of taxes claiming he was entitled to an exemption on the agricultural structures as provided for in SDCL 10-4-13.1.

Based on the above facts, you have asked the following questions:

QUESTIONS: 

1.  Did the taxpayer qualify for an exemption on the agricultural structures as provided for in SDCL 10-4-13.1? 

2.  Is the taxpayer entitled to an abatement or refund of taxes on the agricultural structures?

SDCL 10-4-13.1 classifies for tax purposes buildings and structures other than normally occupied dwellings on agricultural land and automobile garages or  portions of buildings used for that purpose which are used exclusively for agricultural purposes and situated on agricultural land.  The section then provides that $10,000 of the full and true value of all building used in connection with the taxpayer's agricultural pursuits is exempt for each 'normally occupied dwelling other than mobile homes which is located on agricultural land and classified as non-agricultural property under §  10-6-31.'

From the facts you present, the dwelling has been classified as non- agricultural and the other structures as agricultural.  Nothing in the law requires that the normally occupied dwelling be occupied by the owner of the land or any person whose vocation is agriculture.  It is sufficient merely that the dwelling be an occupied dwelling and be classified as non-agricultural.

IN RE QUESTION NO. 1:

The agricultural structures on this parcel of agricultural land under the facts you have presented qualify for the $10,000 exemption.

IN RE QUESTION NO. 2:

In the event that all of the conditions were met for the year in which the taxes were paid, the taxpayer is entitled to an abatement or refund on the  agricultural structures pursuant to SDCL 10-18-1(c).

Respectfully submitted,

Mark V. Meierhenry
Attorney General