S.D. Admin. R. 67:46:05:04

Current through Register Vol. 51, page 67, December 16, 2024

Section 67:46:05:04 - Determining fair market value

The fair market value of property or contractual rights to receive money must be determined by one of the following:

(1) A real estate appraiser;

(2) A Bureau of Indian Affairs realty office;

(3) An average of three estimates from individuals, other than the applicant or recipient, who are familiar with property values within the geographic area;

(4) A Farm Home Administration office;

(5) A bank or savings and loan official;

(6) An agency that specializes in discounting contractual rights using amortization schedules, current property values, or other pertinent data; or

(7) One hundred percent of the county tax valuation unless:

a. The county tax valuation notice is more than a year old based on its date of issue; or

b. The county tax valuation notice pertains to a special purpose assessment, unless it also provides a fair market value assessment, which can be used; or

c. The county tax valuation assessment is under appeal; or

d. The county tax valuation assessment is based on something other than fair market value, such as agricultural, mining or industrial; or

e. The county tax valuation notice provides either no assessment ratio or only a range.

The applicant or recipient must provide documentation to the department which establishes the property's or contract's fair market value. The department reserves the right to obtain and use independent fair market valuations when, in its judgment, the valuations submitted are too high or too low.

The initial value of a life estate is determined according to § 67:46:05:08.

The initial value of contractual rights to receive installment payments for property that was sold is determined according to § 67:46:05:28.

S.D. Admin. R. 67:46:05:04

17 SDR 187, effective 6/3/1991; transferred from § 67:16:20:01.03, effective 8/23/1992; 21 SDR 162, effective 3/23/1995; 25 SDR 13, effective 8/9/1998; 41 SDR 93, effective 12/3/2014.

General Authority: SDCL 28-6-1(4)(6), 28-6-3.1.

Law Implemented: SDCL 28-6-1(4)(6), 28-6-3.1.