Davison County landowners consolidate plats to reduce property tax assessments

Oct. 27—MITCHELL — Davison County landowners are taking reducing property tax assessments into their own hands.

Property owners are not waiting for a decision from the Davison County Board of Equalization to potentially reduce property tax assessments for parcels during tax assessment appeal time. Instead residents are going through the process of hiring surveyors, and filling out zoning and plat merger applications with the city of Mitchell and the Davison County Planning and Zoning office. Another instance of this occurred during the Monday, Oct. 27 Mitchell Planning Commission meeting at City Hall.

Davison County Director of Equalization Leah Vissia told the Mitchell Republic on Monday afternoon that state codified law and administrative rules prevent plats from being consolidated to reduce a property owner’s taxes. In June, State’s Attorney Jim Taylor issued an opinion to the Davison County Commission to no longer allow the county to combine plats at appeal time. Vissia told the Mitchell Republic on Monday that she agrees with Taylor’s guidance.

Taylor told the Mitchell Republic his opinion reconciles apparent conflicts across South Dakota law. Previously, equalization offices would allow three tracts of land totaling 30 acres to qualify for agricultural exemption. Now, property must consist of at least 80 acres and be operated as an agricultural production unit. This ensures the consolidated plat is being used for agriculture purposes, rather than an individual attempting to find a loophole to lower their taxes.

“We’re not going to classify land being held for development as agriculture land,” Taylor said.

In April, Vissia requested an opinion from the State’s Attorney’s Office after Davison County Planning and Zoning Director Jeff Bathke stated concerns

about assessing and taxing properties on future assumed value instead of present actual value.

Property assessment appeals go before the Davison County Board of Equalization annually. Davison County residents have received notices of property assessments increasing by as much as 500%. Most cases, however, are significantly lower than that. In April, the board was repeatedly told not to combine nearby properties in the appeals process.

Properties in Davison County are assessed on market value, according to Vissia. If there’s no history of sales for lots in a certain area then value is determined by the surrounding area. This includes land within Mitchell city limits.

“Values are based off of whatever those parcels are selling for that are kind of like it,” Vissia said, “so then it could be more. If they were combined, it’d probably be less.”

Typically, Vissia noted, the larger the parcels gets, the less per square foot it sells for. A 160-acre property would have an overall higher price tag, but cost less per acre than a 10-acre property, according to Vissia.

Combining these values could result in less assessed, according to Vissia.

“If they combine them, their values could get less,” Vissia said.

If properties are consistently selling higher than the valued price, then Vissia believes those properties need an increase in assessed value. If properties are assessed higher than what they sell for, that means they are over-assessed and need to have a lower value.

It isn’t a matter of how many properties sold, but how much the properties sold for, according to Vissia.

It all depends on the market, she said.

The Department of Equalization office verifies property sales, according to Vissia.

If something is a parcel, meaning a greater section of the county not previously platted. It could, under certain circumstances, be joined with another parcel.

“They would have to do some work, probably, if that’s what they want to do,” Vissia said.

Mitchell City Planner Mark Jenniges expects more plats to be consolidated in the city and Davison County.

The Mitchell Planning Commission, during its meeting on Monday, Oct. 27, recommended approval for a plat of the James Valley Landscaping Solutions and Garden Center at 600 W. Spruce St.

Four plats at the garden center were consolidated into a singular plat to receive a more favorable property tax assessment in Davison County. Each property went from a minimum of 1 acre to a total platted 5.43 acres.

Earlier this month, Mitchell resident Lyle Haring received recommendation from the Planning Commission for rezoning a property north of Lake Mitchell on Anthony Avenue. The Mitchell City Council will consider the second reading of Haring’s rezoning request on Monday, Nov. 3.

Haring plans to consolidate plats after rezoning for tax purposes, according to Jenniges. Plats cannot be merged when zoned differently like Haring’s properties are currently. Haring’s plats can be consolidated into a single plat 20 days after publication of the second reading of the ordinance.

Haring took complaint with the Davison County Board of Equalization in April over his properties being assessed at a higher value than the previous year.