The bill amends South Dakota's agricultural land valuation laws, specifically sections 10-6-130 and 10-6-131. It establishes that all soils are classified according to standards set by the United States Department of Agriculture, with agricultural land categorized as either cropland or noncropland based on their land capability classes. Notably, soil types classified as class IV can be designated as either cropland or noncropland by the director of equalization, who is required to notify the department of any changes in classification by the first of November each year. Additionally, the bill allows for a maximum 20% increase in the total acres of class IV soil types classified as noncropland from the previous assessment year.

Furthermore, the bill mandates that the director of equalization shall adjust the assessed value of agricultural land based on various productivity factors, including location, size, and climate, among others. The director is required to document these adjustments and maintain the documentation for the duration of the adjustment. Property owners can request an examination of their land if the actual use differs from the designated land use category, prompting the director to determine if an adjustment is warranted. The bill also clarifies the definition of "shelterbelt" in relation to conservation purposes.

Statutes affected:
Introduced, 02/05/2025: 10-6-130, 10-6-131