25.743.12 100th Legislative Session 1143
2025 South Dakota Legislature
House Bill 1143
SENATE LOCAL GOVERNMENT ENGROSSED
This bill has been extensively amended (hoghoused) and may no longer be
consistent with the original intention of the sponsor.
Introduced by: Representative Ladner
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to require that the director of equalization adjust certain agricultural land 1
values. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 10-6-130 be AMENDED: 4
10-6-130. All soils must be are divided into classes based on soil classification 5
standards developed by the United States Department of Agriculture, Natural Resources 6
Conservation Service. All agricultural land must be categorized as either cropland or 7
noncropland. Soil types with land capability class I, II, and III must be categorized as 8
cropland and soil types with land capability classes V, VI, VII, and VIII must be categorized 9
as noncropland. Soil types with land capability class IV may be categorized by the director 10
of equalization as either cropland or as noncropland. The director of equalization must 11
shall notify the department by November 1 first of each year of any changes to the 12
categorization of the land capability class IV soil types. Beginning with the 2023 13
assessment year, the total acres of class IV soil types classified as noncropland in a county 14
may increase a maximum of twenty percent over the total acres of class IV soil types 15
classified as noncropland in the county in the previous assessment year. The department 16
shall provide each county with soil ratings for all soil types present in the county. The 17
director of equalization shall implement the soil ratings and utilize the ratings as the basis 18
for determining the value of each soil type in the county. 19
The director may make an adjustment to a parcel pursuant to § 10-6-131. 20
Nothing in this section prohibits the department from categorizing soil types with 21
land capability class I, II or III as noncropland if one or more of the adjustment factors 22
contained in § 10-6-131 affects the productivity of the soil type, and the reasonable, 23
probable use of the soil type that is physically practical, appropriately supported, 24
financially feasible, and that results in the highest sustainable use of the land, is not 25
harvesting crops or plants produced. 26 25.743.12 2 1143
Underscores indicate new language.
Overstrikes indicate deleted language.
Section 2. That § 10-6-131 be AMENDED: 1
10-6-131. Before July first each year, the secretary of revenue shall annually 2
provide each director the agricultural income value for each county as computed pursuant 3
to § 10-6-127. The director shall annually determine the assessed value of agricultural 4
land. The director may adjust the assessed value of agricultural land to the extent that 5
one or more of the following factors negatively affect the productivity of the land: 6
(1) Location; 7
(2) Size; 8
(3) Soil survey statistics; 9
(4) Terrain; 10
(5) Topographical condition; 11
(6) Climate; 12
(7) Accessibility; or 13
(8) Surface obstructions, including shelterbelts. 14
If the director determines that one or more of the factors provided in this section 15
negatively affects the productivity of the land, the director shall adjust the assessed value 16
of the land. 17
The director shall document each adjustment by using data from sources 18
reasonably related to the adjustment being made. In addition, the director may use data 19
from comparable sales of agricultural land to document the adjustment concerning 20
productivity for any of the factors listed in this section. 21
If the actual use of agricultural land varies from the land use category specified by 22
soil classification standards, or if any factors listed in this section exist that affect the 23
productivity of the land, the property owner may request an examination of the land by 24
the director on a form prescribed by the department. The director shall determine whether 25
to adjust the assessed value of the agricultural land pursuant to the factors listed in this 26
section. 27
The director shall document all supporting evidence for the adjustment 28
determination. The director shall provide any adjustment documentation to the 29
department upon request. The director must shall keep the adjustment documentation in 30
the director's office for the life of the adjustment. 31
For the purposes of this section, the term "shelterbelt" means field shelterbelts, 32
farmstead windbreaks, wildlife tree plantings, living snow fences, and other tree plantings 33
made specifically for conservation purposes, but excluding trees planted for ornamental 34
or commercial purposes. 35