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 in land capability classes I, II, and III designated as cropland, while classes V, VI, VII, and VIII are designated as noncropland. Notably, soil types in class IV can be categorized as either, with a stipulation that the total acres of class IV soil classified as noncropland in a county can only increase by a maximum of twenty percent from the previous assessment year. The director is also required to notify the department of any changes in categorization by November 1st each year and to implement soil ratings provided by the department to determine land values.

Additionally, the bill outlines the responsibilities of the director of equalization in assessing agricultural land values, including the requirement to adjust these values based on various factors that may negatively impact productivity, such as location, size, and terrain. The director must document any adjustments made and provide evidence to support these decisions. Furthermore, property owners can request an examination of their land if its actual use differs from its designated classification, prompting the director to reassess the land's value based on the outlined factors. The bill also clarifies the definition of "shelterbelt" in relation to agricultural land assessments.

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