This bill amends South Dakota's agricultural land valuation laws, specifically sections 10-6-130 and 10-6-131. It establishes that all agricultural land must be classified as either cropland or noncropland based on soil capability classes, with specific guidelines for class IV soils, which can be categorized as either type at the discretion of the director of equalization. The bill mandates that the director notify the department of any changes to the categorization of class IV soils by November 1 each year and limits the increase of class IV soils classified as noncropland to a maximum of twenty percent over the previous assessment year starting in 2023. Additionally, the director is required to implement soil ratings provided by the department to determine the value of each soil type.

Furthermore, the bill outlines the responsibilities of the director of equalization in adjusting the assessed value of agricultural land based on various factors that may negatively impact productivity, such as location, size, and climate. The director must document any adjustments made and provide evidence to support these decisions. Property owners can request an examination of their land if the actual use differs from the designated classification, and the director is required to keep all adjustment documentation on file. The bill also clarifies the definition of "shelterbelt" in the context of agricultural land assessment.

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