25.743.13 100th Legislative Session 1143
2025 South Dakota Legislature
House Bill 1143
ENROLLED
AN ACT
ENTITLED An Act to require that the director of equalization adjust certain
agricultural land values.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-6-130 be AMENDED:
10-6-130. All soils are divided into classes based on soil classification standards
developed by the United States Department of Agriculture, Natural Resources
Conservation Service. All agricultural land must be categorized as either cropland or
noncropland. Soil types with land capability class I, II, and III must be categorized as
cropland and soil types with land capability classes V, VI, VII, and VIII must be categorized
as noncropland. Soil types with land capability class IV may be categorized by the director
of equalization as either cropland or as noncropland. The director of equalization shall
notify the department by November first of each year of any changes to the categorization
of the land capability class IV soil types. Beginning with the 2023 assessment year, the
total acres of class IV soil types classified as noncropland in a county may increase a
maximum of twenty percent over the total acres of class IV soil types classified as
noncropland in the county in the previous assessment year. The department shall provide
each county with soil ratings for all soil types present in the county. The director of
equalization shall implement the soil ratings and utilize the ratings as the basis for
determining the value of each soil type in the county.
The director may make an adjustment to a parcel pursuant to § 10-6-131.
Nothing in this section prohibits the department from categorizing soil types with
land capability class I, II or III as noncropland if one or more of the adjustment factors
contained in § 10-6-131 affects the productivity of the soil type, and the reasonable,
probable use of the soil type that is physically practical, appropriately supported,
financially feasible, and that results in the highest sustainable use of the land, is not
harvesting crops or plants produced. 25.743.13 2 1143
HB1143 ENROLLED
Section 2. That § 10-6-131 be AMENDED:
10-6-131. Before July first each year, the secretary of revenue shall annually
provide each director the agricultural income value for each county as computed pursuant
to § 10-6-127. The director shall annually determine the assessed value of agricultural
land. The director may adjust the assessed value of agricultural land to the extent that
one or more of the following factors negatively affect the productivity of the land:
(1) Location;
(2) Size;
(3) Soil survey statistics;
(4) Terrain;
(5) Topographical condition;
(6) Climate;
(7) Accessibility; or
(8) Surface obstructions, including shelterbelts.
If the director determines that one or more of the factors provided in this section
negatively affects the productivity of the land, the director shall adjust the assessed value
of the land.
The director shall document each adjustment by using data from sources
reasonably related to the adjustment being made. In addition, the director may use data
from comparable sales of agricultural land to document the adjustment concerning
productivity for any of the factors listed in this section.
If the actual use of agricultural land varies from the land use category specified by
soil classification standards, or if any factors listed in this section exist that affect the
productivity of the land, the property owner may request an examination of the land by
the director on a form prescribed by the department. The director shall determine whether
to adjust the assessed value of the agricultural land pursuant to the factors listed in this
section.
The director shall document all supporting evidence for the adjustment
determination. The director shall provide any adjustment documentation to the
department upon request. The director shall keep the adjustment documentation in the
director's office for the life of the adjustment.
For the purposes of this section, "shelterbelt" means field shelterbelts, farmstead
windbreaks, wildlife tree plantings, living snow fences, and other tree plantings made
specifically for conservation purposes, but excluding trees planted for ornamental or
commercial purposes. 25.743.13 3 1143
HB1143 ENROLLED
An Act to require that the director of equalization adjust certain agricultural land values.
I certify that the attached Act originated in
the:
House as Bill No. 1143
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1143
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2025 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2025
Governor
STATE OF SOUTH DAKOTA ,
ss.
Office of the Secretary of State
Filed ____________, 2025
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State