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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.

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.

revise certain requirements for contesting certificates of assessment.

SB 41 clarifies the process for taxpayers challenging tax assessments by requiring written requests to be received (not just mailed) by the Department of Revenue within 60 days of receiving the assessment notice, and specifies that postmarks from the U.S. Postal Service count as the official receipt date for mailed requests. The bill also maintains existing rules that courts cannot hear assessment challenges if the request isn't filed within this 60-day deadline.

revise and reorganize certain provisions regarding the assessment of property for the purposes of taxation.

SB 70 reorganizes how South Dakota defines key terms used in property tax assessment, removing outdated definitions of "credit" and "money" while clarifying what counts as a "tract" or "parcel" of land for tax purposes. The bill also eliminates a separate section of tax law (10-6-1.4) and adds a definition for "Director" as the county's director of equalization. These changes streamline the property tax assessment rules without changing how properties are actually taxed.

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.

repeal obsolete property tax provisions and to revise property tax cross-reference and land classification statutes.

This bill cleans up South Dakota's property tax laws by removing outdated provisions related to special assessments for street improvements and water pipe purchases that are no longer used. It also makes minor updates to cross-references in existing laws governing county economic development funds and municipal tax distributions. The changes primarily eliminate obsolete procedures while keeping the substance of current property tax rules intact.