South Dakota 2025 Regular Session

South Dakota House Bill HB1143 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.743.13 100th Legislative Session 1143
	1	+	25.743.12 100th Legislative Session 1143
2	2
3	3
4	4		2025 South Dakota Legislature
5	5		House Bill 1143
6		-	~~ENROLLED~~
	6	+	SENATE LOCAL GOVERNMENT ENGROSSED
7	7
8		-	AN ACT
	8	+	This bill has been extensively amended (hoghoused) and may no longer be
	9	+	consistent with the original intention of the sponsor.
9	10
10	11
11		-	ENTITLED An Act to require that the director of equalization adjust certain
12		-	agricultural land values.
13		-	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
14		-	Section 1. That § 10-6-130 be AMENDED:
15		-	10-6-130. All soils are divided into classes based on soil classification standards
16		-	developed by the United States Department of Agriculture, Natural Resources
17		-	Conservation Service. All agricultural land must be categorized as either cropland or
18		-	noncropland. Soil types with land capability class I, II, and III must be categorized as
19		-	cropland and soil types with land capability classes V, VI, VII, and VIII must be categorized
20		-	as noncropland. Soil types with land capability class IV may be categorized by the director
21		-	of equalization as either cropland or as noncropland. The director of equalization shall
22		-	notify the department by November first of each year of any changes to the categorization
23		-	of the land capability class IV soil types. Beginning with the 2023 assessment year, the
24		-	total acres of class IV soil types classified as noncropland in a county may increase a
25		-	maximum of twenty percent over the total acres of class IV soil types classified as
26		-	noncropland in the county in the previous assessment year. The department shall provide
27		-	each county with soil ratings for all soil types present in the county. The director of
28		-	equalization shall implement the soil ratings and utilize the ratings as the basis for
29		-	determining the value of each soil type in the county.
30		-	The director may make an adjustment to a parcel pursuant to § 10-6-131.
31		-	Nothing in this section prohibits the department from categorizing soil types with
32		-	land capability class I, II or III as noncropland if one or more of the adjustment factors
33		-	contained in § 10-6-131 affects the productivity of the soil type, and the reasonable,
34		-	probable use of the soil type that is physically practical, appropriately supported,
35		-	financially feasible, and that results in the highest sustainable use of the land, is not
36		-	harvesting crops or plants produced. 25.743.13 2 1143
37		-	HB1143 ENROLLED
38		-	Section 2. That § 10-6-131 be AMENDED:
39		-	10-6-131. Before July first each year, the secretary of revenue shall annually
40		-	provide each director the agricultural income value for each county as computed pursuant
41		-	to § 10-6-127. The director shall annually determine the assessed value of agricultural
42		-	land. The director may adjust the assessed value of agricultural land to the extent that
43		-	one or more of the following factors negatively affect the productivity of the land:
44		-	(1) Location;
45		-	(2) Size;
46		-	(3) Soil survey statistics;
47		-	(4) Terrain;
48		-	(5) Topographical condition;
49		-	(6) Climate;
50		-	(7) Accessibility; or
51		-	(8) Surface obstructions, including shelterbelts.
52		-	If the director determines that one or more of the factors provided in this section
53		-	negatively affects the productivity of the land, the director shall adjust the assessed value
54		-	of the land.
55		-	The director shall document each adjustment by using data from sources
56		-	reasonably related to the adjustment being made. In addition, the director may use data
57		-	from comparable sales of agricultural land to document the adjustment concerning
58		-	productivity for any of the factors listed in this section.
59		-	If the actual use of agricultural land varies from the land use category specified by
60		-	soil classification standards, or if any factors listed in this section exist that affect the
61		-	productivity of the land, the property owner may request an examination of the land by
62		-	the director on a form prescribed by the department. The director shall determine whether
63		-	to adjust the assessed value of the agricultural land pursuant to the factors listed in this
64		-	section.
65		-	The director shall document all supporting evidence for the adjustment
66		-	determination. The director shall provide any adjustment documentation to the
67		-	department upon request. The director shall keep the adjustment documentation in the
68		-	director's office for the life of the adjustment.
69		-	For the purposes of this section, "shelterbelt" means field shelterbelts, farmstead
70		-	windbreaks, wildlife tree plantings, living snow fences, and other tree plantings made
71		-	specifically for conservation purposes, but excluding trees planted for ornamental or
72		-	commercial purposes. 25.743.13 3 1143
73		-	HB1143 ENROLLED
74		-	An Act to require that the director of equalization adjust certain agricultural land values.
	12	+	Introduced by: Representative Ladner
75	13
76		-
77		-
78		-
79		-	I certify that the attached Act originated in
80		-	the:
81		-
82		-	House as Bill No. 1143
83		-
84		-
85		-
86		-	Chief Clerk
87		-
88		-
89		-
90		-
91		-	Speaker of the House
92		-
93		-	Attest:
94		-
95		-
96		-
97		-
98		-	Chief Clerk
99		-
100		-
101		-
102		-
103		-	President of the Senate
104		-
105		-	Attest:
106		-
107		-
108		-
109		-
110		-
111		-	Secretary of the Senate
112		-
113		-
114		-
115		-	House Bill No. 1143
116		-	File No. ____
117		-	Chapter No. ______
118		-
119		-
120		-
121		-	Received at this Executive Office
122		-	this _____ day of _____________,
123		-
124		-	2025 at ____________M.
125		-
126		-
127		-
128		-	By
129		-	for the Governor
130		-
131		-
132		-	The attached Act is hereby
133		-	approved this ________ day of
134		-	______________, A.D., 2025
135		-
136		-
137		-
138		-
139		-
140		-	Governor
141		-
142		-	STATE OF SOUTH DAKOTA ,
143		-	ss.
144		-	Office of the Secretary of State
145		-
146		-
147		-	Filed ____________, 2025
148		-	at _________ o'clock __M.
149		-
150		-
151		-
152		-
153		-
154		-	Secretary of State
155		-
156		-
157		-
158		-	By
159		-	Asst. Secretary of State
160		-
161		-
	14	+	Underscores indicate new language.
	15	+	Overstrikes indicate deleted language.
	16	+	An Act to require that the director of equalization adjust certain agricultural land 1
	17	+	values. 2
	18	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
	19	+	Section 1. That § 10-6-130 be AMENDED: 4
	20	+	10-6-130. All soils must be are divided into classes based on soil classification 5
	21	+	standards developed by the United States Department of Agriculture, Natural Resources 6
	22	+	Conservation Service. All agricultural land must be categorized as either cropland or 7
	23	+	noncropland. Soil types with land capability class I, II, and III must be categorized as 8
	24	+	cropland and soil types with land capability classes V, VI, VII, and VIII must be categorized 9
	25	+	as noncropland. Soil types with land capability class IV may be categorized by the director 10
	26	+	of equalization as either cropland or as noncropland. The director of equalization must 11
	27	+	shall notify the department by November 1 first of each year of any changes to the 12
	28	+	categorization of the land capability class IV soil types. Beginning with the 2023 13
	29	+	assessment year, the total acres of class IV soil types classified as noncropland in a county 14
	30	+	may increase a maximum of twenty percent over the total acres of class IV soil types 15
	31	+	classified as noncropland in the county in the previous assessment year. The department 16
	32	+	shall provide each county with soil ratings for all soil types present in the county. The 17
	33	+	director of equalization shall implement the soil ratings and utilize the ratings as the basis 18
	34	+	for determining the value of each soil type in the county. 19
	35	+	The director may make an adjustment to a parcel pursuant to § 10-6-131. 20
	36	+	Nothing in this section prohibits the department from categorizing soil types with 21
	37	+	land capability class I, II or III as noncropland if one or more of the adjustment factors 22
	38	+	contained in § 10-6-131 affects the productivity of the soil type, and the reasonable, 23
	39	+	probable use of the soil type that is physically practical, appropriately supported, 24
	40	+	financially feasible, and that results in the highest sustainable use of the land, is not 25
	41	+	harvesting crops or plants produced. 26 25.743.12 2 1143
	42	+	Underscores indicate new language.
	43	+	Overstrikes indicate deleted language.
	44	+	Section 2. That § 10-6-131 be AMENDED: 1
	45	+	10-6-131. Before July first each year, the secretary of revenue shall annually 2
	46	+	provide each director the agricultural income value for each county as computed pursuant 3
	47	+	to § 10-6-127. The director shall annually determine the assessed value of agricultural 4
	48	+	land. The director may adjust the assessed value of agricultural land to the extent that 5
	49	+	one or more of the following factors negatively affect the productivity of the land: 6
	50	+	(1) Location; 7
	51	+	(2) Size; 8
	52	+	(3) Soil survey statistics; 9
	53	+	(4) Terrain; 10
	54	+	(5) Topographical condition; 11
	55	+	(6) Climate; 12
	56	+	(7) Accessibility; or 13
	57	+	(8) Surface obstructions, including shelterbelts. 14
	58	+	If the director determines that one or more of the factors provided in this section 15
	59	+	negatively affects the productivity of the land, the director shall adjust the assessed value 16
	60	+	of the land. 17
	61	+	The director shall document each adjustment by using data from sources 18
	62	+	reasonably related to the adjustment being made. In addition, the director may use data 19
	63	+	from comparable sales of agricultural land to document the adjustment concerning 20
	64	+	productivity for any of the factors listed in this section. 21
	65	+	If the actual use of agricultural land varies from the land use category specified by 22
	66	+	soil classification standards, or if any factors listed in this section exist that affect the 23
	67	+	productivity of the land, the property owner may request an examination of the land by 24
	68	+	the director on a form prescribed by the department. The director shall determine whether 25
	69	+	to adjust the assessed value of the agricultural land pursuant to the factors listed in this 26
	70	+	section. 27
	71	+	The director shall document all supporting evidence for the adjustment 28
	72	+	determination. The director shall provide any adjustment documentation to the 29
	73	+	department upon request. The director must shall keep the adjustment documentation in 30
	74	+	the director's office for the life of the adjustment. 31
	75	+	For the purposes of this section, the term "shelterbelt" means field shelterbelts, 32
	76	+	farmstead windbreaks, wildlife tree plantings, living snow fences, and other tree plantings 33
	77	+	made specifically for conservation purposes, but excluding trees planted for ornamental 34
	78	+	or commercial purposes. 35