830 N.W.2d 93
S.D.2013Background
- This is the second SD Supreme Court appeal about Butte County Director of Equalization’s method for valuing Apland’s rangeland for 2002–2003.
- Apland argued the use of sales with appurtenant water rights without adjusting for water-right value violated equality and uniformity.
- The Court in Apland I held the Director failed to reflect value of BFID water rights and remanded to adjust downward for water rights before assessing median value.
- On remand, Director used a paired-sales method with a 48% downward adjustment for water rights when measuring irrigated vs non-irrigated land.
- The trial court found Director hadn’t complied with Apland I, but the SD Supreme Court reverses in part and remands for intra-neighborhood equality/uniformity assessment.
- SDCL 10-6-33.6 governed “neighborhooding” procedures at the time, though later repealed in 2008.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Director properly followed Apland I directives on remand | Apland argues Director failed to ensure equality/uniformity within neighborhoods | Director contends adjustments for water rights and 10-6-33.6 compliance were satisfied | Partially: Director followed core directives but intra-neighborhood equality remains to be shown. |
| whether 10-6-33.6 neighborhood establishment was justified after water-right adjustments | Apland asserts neighborhoods not uniform after adjustments | Director claims deviation >10% warrants separate values | Remanded to determine equality/uniformity within neighborhoods. |
Key Cases Cited
- Apland v. Butte Cnty. (Apland I), 2006 S.D. 53 (2006) (held Director must adjust for appurtenant water rights before median value)
- Butte Cnty. v. Vallery, 602 N.W.2d 284 (1999 S.D.) (presumption of proper official action; burden on taxpayer to show excess, lack of uniformity, or discrimination)
- Burke v. Butte Cnty., 640 N.W.2d 473 (2002 S.D.) (tax appeals; burden-shifting and evidentiary standards)
- Stehly v. Davison Cnty., 802 N.W.2d 899 (2011 S.D.) (de novo standard for constitutional/property tax questions)