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revise the property tax exemption amount for certain agricultural property.

This bill increases the property tax exemption for agricultural buildings from $10,000 to $100,000 in value, meaning farmers can shield a larger portion of their farm structures from property taxes. The exemption still requires that the farm has a dwelling occupied by the owner, a relative, or trust beneficiary for at least six months per year, and each farm can only claim one exemption.

classify land used for horse husbandry as agricultural property for tax purposes.

SB 113 allows land used for raising horses to qualify for agricultural property tax rates, the same way farmland and ranches do. This change means horse operations will receive lower property tax assessments based on their agricultural use rather than being taxed at higher residential or commercial rates.

revise certain provisions regarding riparian buffer strips

This bill reduces the tax assessment rate for riparian buffer strips (land within 120 feet of lakes, rivers, or streams) from 60 percent down to 50 percent of their agricultural income value, making these environmentally sensitive areas more affordable for landowners. The change applies to all qualifying agricultural land near designated water bodies and tributaries, providing a greater tax incentive for maintaining riparian buffers that protect water quality.

establish the Re-Homestead South Dakota Program.

South Dakota counties that choose to participate in the Re-Homestead Program can reduce property taxes by 50% for up to 240 acres of land owned by someone who sells a 5-20 acre parcel that becomes an owner-occupied home, as long as the property meets basic infrastructure requirements and isn't classified as agricultural land during that five-year period. This incentivizes landowners to convert rural properties into homes by temporarily reducing their tax burden on remaining land holdings.

revise the definition of the term owner-occupied single-family dwelling for property tax classification purposes.

SB 115 clarifies what counts as an "owner-occupied single-family dwelling" for property tax purposes by specifically including condominiums, townhomes, housing cooperatives, and manufactured homes, plus any garages or accessory structures on the property. The bill also establishes that a property qualifies for this classification if the owner occupies at least 50 percent of the living space in the dwelling and designates it as their principal residence. This change makes the definition more detailed and explicit about which types of residential properties receive favorable owner-occupied tax treatment.

redefine the criteria for classifying land as agricultural for tax purposes.

South Dakota is changing how land qualifies for agricultural property tax classification by raising the minimum income threshold from $2,500 to at least 10% of the bare land's taxable value, meaning landowners must now generate significantly more agricultural income to receive the lower tax rate. The bill also clarifies that land must meet these income requirements in at least three of the previous five years and specifies how to count income when multiple parties farm the same land.

establish timberland as a separate classification of property for tax purposes, define the criteria for timberland classification, and set the tax parameters for property classified as timberland.

South Dakota would create a new property tax classification called "timberland," separate from agricultural and non-agricultural property. The bill adds timberland as the fourth classification category in state property tax law and directs the state director of equalization to designate properties that qualify as timberland on tax assessment rolls. This change allows forested land to be taxed under its own specific rules rather than being grouped with other property types.

authorize the transfer of wind energy tax revenue from a school district general fund.

This bill allows school districts to transfer wind energy tax revenue from their general fund to capital improvement accounts (capital outlay, bond redemption, and capital projects funds), which was previously prohibited. The change creates an exception to the existing rule that blocks most general fund transfers to these accounts, but only for revenue specifically generated from wind energy taxes.

revise provisions regarding owner occupied dwelling requirements.

SB182 removes a state law requirement related to owner-occupied dwellings by repealing South Dakota Codified Law §7-8-16. Without access to the full text of that section, the specific requirement being eliminated cannot be detailed, but this change simplifies the rules governing owner-occupied housing in South Dakota.