72-16-335. Valuation of farms. (1) Except as provided in subsection (3), the value of a farm for farming purposes is determined by dividing the excess of the average annual gross cash rental for comparable land used for farming purposes and located in the locality of the farm over the average annual state and local real estate taxes for comparable land by the average annual effective interest rate for all new federal land bank loans. For purposes of the preceding sentence, each average annual computation must be made on the basis of the 5 most recent calendar years ending before the date of the decedent's death.
     (2) If there is no comparable land from which the annual average gross cash rental may be determined but there is comparable land from which the average net share rental may be determined, when subsection (1) is applied, "average annual net share rental" must be substituted for "average annual gross cash rental".
     (3) The formula in subsections (1) and (2) may not be used:
     (a) if it is established that there is no comparable land from which the average annual gross cash rental may be determined and that there is no comparable land from which the average net share rental may be determined; or
     (b) if the personal representative elects to have the value of the farm for farming purposes determined under 72-16-336.

     History: En. Sec. 4, Ch. 705, L. 1979; amd. Sec. 6, Ch. 511, L. 1983.