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Acquisition Policies Act of 1970, 42 U.S.C. �� 4601-
4655 (1976) applicable to state highway projects by
reason of the contribution of federal funds. This
relocation payment is defined by statute as that amount
which, when added to the acquisition cost of the
dwelling taken, equals the cost of a comparable
replacement dwelling. 42 U.S.C. � 4623 (1976).
To compute the appropriate sum of relocation
assistance, which is subject to a maximum of $15,000.00, it
is necessary to determine how much was paid in the
condemnation of the property owner’s former dwelling and to
deduct that amount from the ascertained cost of a
replacement dwelling. * * * [Tonnar v. Missouri State
Highway & Transp. Commn., 640 S.W.2d 527, 529 (Mo. Ct. App.
1982).]
Therefore, given the history, language, and interpretations
of the statute, we hold that only payments expressly authorized
by subchapter II and in excess of the just compensation paid for
taken property are exempted from taxation by the Relocation Act.
B. Nature of $65,000 Payment Received by Petitioner
Having determined that the Relocation Act will exempt
petitioner’s $65,000 payment from taxation only if it is in the
nature of relocation assistance rather than just compensation or
acquisition cost, we turn to the question of how these proceeds
should be characterized. Contrary to petitioner’s averments that
the $65,000 was a portion of her relocation assistance, however,
we find that the documentary evidence presented indicates
otherwise.
First, as a general proposition, the evidence suggests that
the policy of the State of South Dakota was to maintain a
distinction between fair market value paid for property and
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