"Value of SD Land Rising"

Update on SE SD land prices

Got an email from a friend in the Platte SD area and I quote

" Guess we need to buy some land. 4 pieces sold between Geddes and Lake Andes end of the week. Cheapest piece went for $4000 an acre. Highest was an 80 brought $5000 an acre Other two brought $4600 and $4700." :eek:

Just last Oct a quarter next to our place went for $3800 an acre and I thougt that was outrageous, now this so I guess it's still on the upward trend.
 
The Hoots colony is going to split as they are getting too large. They are going to build a new colony by Lake. I would wager they were the buyers. They are buying up everything they can get their hands on. They are making it impossible to afford to buy any ground in that area but hey, when you pay no taxes you can afford to pay that kind of price
 
onpoint said:
The Hoots colony is going to split as they are getting too large. They are going to build a new colony by Lake. I would wager they were the buyers. They are buying up everything they can get their hands on. They are making it impossible to afford to buy any ground in that area but hey, when you pay no taxes you can afford to pay that kind of price
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This is not true and there is a lot of misconception on the taxes they pay. Hutterites pay real estate (property) taxes the same way a family farm corporation or business would. They also pay a form of income tax. Hutterites pay taxes based on a “deemed individual income” basis. This means that the colony’s total income is divided by the number of adult members and adjusted for the appropriate exemptions and reductions. They do not pay social security taxes but then they do not collect from social security either.

I'm not taking a side here and have no dog in the fight. I'm just passing on the infomration as I've found it, doing a little research on the web.
 
Dakotazeb said:
This is not true and there is a lot of misconception on the taxes they pay. Hutterites pay real estate (property) taxes the same way a family farm corporation or business would. They also pay a form of income tax. Hutterites pay taxes based on a “deemed individual income” basis. This means that the colony’s total income is divided by the number of adult members and adjusted for the appropriate exemptions and reductions. They do not pay social security taxes but then they do not collect from social security either.

I'm not taking a side here and have no dog in the fight. I'm just passing on the infomration as I've found it, doing a little research on the web.
Click to expand...

I'm not saying they are bad folks. I have done business with them several times. I have been told because of their religion they did not pay taxes. I will say again, they are buying every piece of ground in site by me.
 
Just to show you, there have been issues with them hording land where they have colonies.

Quote
"The Hutterites have fought the Federal government in several tax cases, but since the 1970s, relationships between the Hutterites and the local population have improved considerably, and the Alberta government has strongly supported their rights as a religious community. But there has been some residual resentment and resistance against them. In 2000, the MLA from Little Bow in southern Alberta introduced—unsuccessfully—a private bill which would make it illegal for anyone to own in excess of 15 per cent of the total amount of arable farmland in any municipal district or county. At that time, a spokesman for the Hutterites defended their colonies saying that they were family farms just like everyone else's; the colonies just happened to have more families living on them. Each colony is, after all, a separate legal identity. It was pointed out that in Warner County—the county with the largest Hutterite holdings—59,792 hectares or 13.5% was owned by the Hutterites in 2000, but the Mormon Church owned the 41,600 hectare Desert Ranch, by far the largest Alberta farm corporation, and no complaints have been made about this fact.

Not to argue the point but I just got off the phone with someone from the county and they beg do differ. This person says they don't pay property taxes and the county is struggling because of this fact.
 
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I was told the buyer of some recent parcels of land between Geddes and Lake was from Iowa and bought it on a 1031X. From my calcs the tax savings on that exchange was about $600/acre at least so that could have inflated the land price. still high regardless.

As long as buyers pay with cash and not debt then the risk of a bubble is less imminent.
 
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