May 12, 1980

Mr. R. N. Woodruff 
Butte County State's Attorney 
Butte County Courthouse 
Belle Fourche, South Dakota 57717

Official Opinion No. 80-36

Assessment of Irrigated Agricultural Land

Dear Mr. Woodruff:

You have requested an official opinion from this office in regard to the following factual situation:

FACTS: 

The Butte County Assessor has for a number of years been assessing agricultural land having access to water from the Redwater Irrigation District canal system at a value higher than agricultural land of the same type of soil, terrain and topographical condition but lacking the access to the water obtained from the irrigation canal. 

SDCL 10-6-33.1 lists the factors to be considered in determining the value of the agricultural land.  Among those factors are: 

(1)  The capacity of the land to produce agricultural products as defined by SDCL 10-6-33.2;

(2)  Soil, terrain, and topographical condition of property; 

(3)  The present market value of said property as agricultural land as determined by factors (1), (2), (4) and (5); 

(4)  The character of the area of place in which said property is located; 

(5)  Such other agricultural factors as may from time to time become applicable. 

SDCL 10-6-33.2 states the basis for determining the capacity to produce agricultural products referred to in SDCL 10-6-33.1(1).  SDCL 10-6-33.2 states, 'Capacity of land in agricultural use to produce agricultural  products shall be based on average yields under natural conditions, in the case of land producing crops or plants . . ..'

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

QUESTIONS: 

1.  Does the term 'natural conditions' as used in SDCL 10-6-33.2 prohibit the assessor from considering whether or not the land is irrigated in determining the land's capacity to produce? 

2.  If the assessor is prohibited from considering whether or not the land is irrigated in determining the capacity of the land to produce may he consider the fact that the land is irrigated under subsection (3), (4) or (5) of SDCL 10-6-33 in valuating the agricultural land?

It is my opinion on this matter that the Butte County Assessor is correct in considering the value of irrigation to real property valuation for purposes of taxation.  Clearly, under SDCL 10-6-33.1, and administrative rules such as 64:03:04:09, the assessor is properly exercising his authority in considering present market value of land in light of the irrigation factor.  SDCL 10-6-33.2 does not cast any shadow upon this evaluation process in my view.

Respectfully submitted,

Mark V. Meierhenry
Attorney General