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require certain adjustments to the assessed value of agricultural land if factors impact the land's productivity and to require those adjustments to be documented.

Agricultural land assessors must now adjust property values when specific factors affect productivity—such as soil quality, terrain, or climate—and document why they made each adjustment using a standardized county protocol. This changes current law by making adjustments mandatory ("shall") rather than optional ("may") and requiring written justification for those adjustments so the reasoning is transparent and consistent across counties.

provide for an increase in the assessment against certain treated land.

# HB 1124 Summary This bill increases the property tax assessment on certain treated land in South Dakota. The changes modify how land that has undergone specific treatments is valued for tax purposes, resulting in higher assessments for affected property owners.

clarify provisions regarding the discretionary formula for determining the assessed value of property for tax purposes.

HB 1259 clarifies and refines the rules that assessors use when calculating property values for tax purposes under South Dakota's discretionary formula. The bill makes technical adjustments to the existing law to ensure the assessed value calculation process is clearer and more consistently applied. This helps ensure property owners and local governments have a better understanding of how property taxes are determined.

to revise provisions regarding agricultural land classifications for tax purposes.

This bill changes how South Dakota classifies agricultural land for tax purposes by clarifying how "Class IV" soils—those in the middle range of productivity—should be categorized. The director of equalization must now decide whether Class IV soils count as cropland or noncropland based on whether 60% or more of the land is actually used for crop harvesting or has severe limitations that prevent it, rather than relying on soil type alone.

provide for the assessment of certain agricultural land as noncropland.

Agricultural land that has been seeded to grass for at least ten years and used for grazing (or left unharvested) or is native grassland can now be assessed as "noncropland" for tax purposes, which typically results in lower property valuations than cropland. Landowners can request this classification from the director of equalization before August 1st, and the director has 30 days to decide; if denied, owners can appeal the decision.

authorize the secretary of revenue to contract with certain entities for purposes of creating or maintaining a database to determine agricultural income value and to specify the mandatory and permissive data of the database.

HB1006 allows South Dakota's Secretary of Revenue to hire outside companies to create and maintain a database that tracks the value of agricultural income for tax purposes. The law specifies what information must be included in the database and what information can optionally be added to help determine accurate agricultural property values.

establish the minimum value of the benefit of a street improvement.

This bill sets a minimum floor for how much benefit a property owner receives from a street improvement project—at least the full contract price plus all related costs like engineering and legal fees. Previously, the law didn't specify a minimum benefit value, which could have allowed assessments based on lower benefit amounts. The change ensures that when cities assess property owners for street improvements, the calculated benefit cannot be valued below the actual total cost of the project.

revise provisions regarding tax increment districts.

This bill clarifies how South Dakota calculates the baseline property values (called the "tax increment base") for tax increment districts, which are areas where cities use increased property tax revenue to fund development projects. The change requires that the county's director of equalization provide a detailed list of all properties in the district along with their valuations, and it specifies which tax reduction programs should be ignored when setting the baseline value.

provide for the assessment of certain agricultural land as noncropland.

This bill changes how certain agricultural land is classified for property tax purposes in South Dakota. Land that has been seeded to grass for at least ten years and is used for animal grazing, left unharvested, or is native grassland must now be assessed as "noncropland" rather than cropland, which typically results in lower property tax values. Landowners can request reclassification by August 1st, and if the state doesn't respond within 30 days, they can appeal the decision.

revise certain sheriff's fees and costs.

South Dakota sheriffs will receive increased fees for tax collection work: the fee for each levy goes up from $15 to $50, and the penalty for actual travel costs increases from 15% to 16% of the taxes owed. These higher fees will be collected from taxpayers or their property and deposited into the county general fund.