The bill amends sections 10-6-130 and 10-6-131 of South Dakota law to require the director of equalization to adjust the values of certain agricultural lands based on specific criteria. It establishes that all agricultural land must be classified as either cropland or noncropland, with soil types classified as class IV being eligible for categorization as either, at the director's discretion. The bill stipulates that starting in the 2023 assessment year, the total acres of class IV soil types classified as noncropland in a county can increase by a maximum of twenty percent compared to the previous year. Additionally, the director is required to notify the department of any changes in categorization by November 1 each year and must implement soil ratings provided by the department to determine land values.

Furthermore, the bill outlines the factors that may negatively affect the productivity of agricultural land, which the director can consider when adjusting assessed values. These factors include location, size, soil survey statistics, terrain, climate, accessibility, and surface obstructions. The director is mandated to document any adjustments made and provide supporting evidence upon request. The definition of "shelterbelt" is also clarified to include various types of tree plantings for conservation purposes, while excluding ornamental or commercial trees.

Statutes affected:
Introduced, 01/29/2025: 9-14-9, 9-14-7
Senate Local Government Engrossed, 03/05/2025: 10-6-130, 10-6-131
Enrolled, 03/12/2025: 10-6-130, 10-6-131