The amendment eliminates the Agricultural Land Assessment Implementation and Oversight Advisory Task Force entirely and redirects its functions, so that instead of the task force reviewing proposed rules and recommendations, the Department of Revenue now directly receives recommendations from contracted entities by September first each year and reports findings to the legislature. This change NARROWS the bill's scope by removing the advisory task force structure while streamlining the recommendation process to be more direct and administratively efficient.
26.985.12 26.985.13 101st Legislative Session 1264 2026 South Dakota Legislature House Bill 1264 Introduced by: Representative Overweg Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to eliminate the Agricultural Land Assessment Implementation and Oversight 1 Advisory Task Force, and to provide that the Department of Revenue receive 2 the submission of recommendations and provide a report on agricultural 3 value. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 5 Section 1. That § 10-6-124 be AMENDED: 6 10-6-124. The secretary of revenue the department may promulgate rules 7 pursuant to chapter 1-26 concerning the: 8 (1) Collection and tabulation of information required to determine median appraisal or 9 sales assessment ratio, and coefficient of dispersion; 10 (2) Criteria to be included in a compliance audit of assessment practices; 11 (3) Conditions under which a certificate of compliance may be issued to a county; 12 (4) Procedures for determining the valuation of agricultural buildings and structures; 13 (5) Procedures for determining the valuation of dwellings on agricultural land and 14 automobile garages or portions of buildings used as automobile garages; 15 (6) Application of cropland and noncropland income values; 16 (7) Application of soil classification standards; and 17 (8) Procedures for making adjustments to the value of agricultural land pursuant to 18 §§ 10-6-127 to 10-6-132, inclusive. 19 Before the secretary promulgates any rules pursuant to subdivision (4) to (8), 20 inclusive, the secretary shall present the proposed rules to the Agricultural Land 21 Assessment Implementation and Oversight Advisory Task Force established pursuant to 22 § 10-6-134. 23 Section 2. That § 10-6-128 be AMENDED: 24 26.985.12 2 1264 Underscores indicate new language. Overstrikes indicate deleted language. 10-6-128. The secretary of revenue, upon notifying the Agricultural Land 1 Assessment Implementation and Oversight Advisory Task Force, the department may 2 contract with one or more qualified entities for the purpose of creating or maintaining a 3 database to determine the agricultural income value of agricultural land by county, 4 consisting of eight consecutive years of cropland data and noncropland data. The data for 5 the year representing the highest agricultural income value among the eight years and 6 the year representing the 26.985.13 2 1264 HB1264 ENROLLED lowest agricultural income value among the eight years shall 7 must be discarded from the database and the remaining six years averaged for valuation 8 purposes. For each assessment year, the first year of the eight-year data period shall be 9 the year that is nine years less than prior to the assessment year. 10 The cropland data must include acres planted, acres harvested, yield per acre, and 11 statewide crop prices. The noncropland data must include cash rents and statewide calf 12 prices. The noncropland data may also include rangeland and pastureland animal unit 13 months per acre, rangeland and pastureland acres, and grazing season data. 14 Any A qualified entity contracting with the secretary of revenue the department 15 pursuant to this section shall provide the data for each county to the secretary of revenue 16 by June first of each year. 17 For purposes of this section, a qualified entity is a federal or state agency, 18 instrumentality, institution of higher learning, other federal or state authority, or private 19 entity with expertise in researching or evaluating land production capacity. 20 On or before March first of each year, the department shall provide a report to the 21 Taxation Committees in the Senate and the House of Representatives on the data compiled 22 pursuant to this section. 23 Section 3. That § 10-6-129 be AMENDED: 24 10-6-129. The economics department of South Dakota State University shall An 25 entity contracting with the department pursuant to § 10-6-128 may submit 26 recommendations to the Agricultural Land Assessment Implementation and Oversight 27 Advisory Task Force by November 1, 2008, regarding the factors to use for the percentage 28 of annual earning capacity to be used to determine the agricultural income value of the 29 land pursuant to § 10-6-127 and other provisions used to assess agricultural land that will 30 provide the least amount of shift between cropland and noncropland on a statewide basis. 31 Thereafter, the economics department shall submit such. 10-6-127. Any recommendations, if any, 32 to the task force recommendations under this section must be submitted to the department by September 33 first of each year. 34 26.985.12 3 1264 Underscores indicate new language. Overstrikes indicate deleted language. Section 4. That § 10-6-134 be REPEALED. 1 There is hereby established the Agricultural Land Assessment Implementation and 2 Oversight Advisory Task Force. The task force consists of the following fourteen members: 3 (1) The speaker of the House of Representatives shall appoint four members of the 4 House of Representatives. The speaker shall appoint members in a manner that is 5 proportional to a party's representation in the House of Representatives, except 6 the speaker shall appoint at least one member from the minority party in the House 7 of Representatives; 8 (2) The speaker of the House of Representatives shall appoint three members of the 9 general public, at least one of the members shall have an agricultural background 10 and at least one of the members shall have a business background; 11 (3) The president pro tempore of the Senate shall appoint four members of the Senate. 12 The president pro tempore shall appoint members in a manner that is proportional 13 to a party's representation in the Senate, except the president pro tempore shall 14 appoint at least one member from the minority party in the Senate; and 15 (4) The president pro tempore of the Senate shall appoint three members of the 16 general public, at least one of the members shall have an agricultural background 17 and at least one of the members shall have a business background. 18 The speaker of the House of Representatives and president pro tempore of the 19 Senate before the close of each regular session of the Legislature held in odd-numbered 20 years shall appoint members to the task force for a term of two years. If there is a vacancy 21 on the task force, the vacancy shall be filled in the same manner as the original 22 appointment. 23 The task force shall advise the department regarding the rules promulgated by the 24 department to administer the provisions concerning the assessment and taxation of 25 agricultural lands and shall review the implementation of the provisions of law concerning 26 the assessment and taxation of agricultural land. The task force shall report to the Senate 27 and House of Representatives and may submit a copy of its report to the Governor. The 28 task force may present draft legislation and policy recommendations to the Legislative 29 Research Council Executive Board. 30 Section 5. That § 10-6-135 be REPEALED. 31 26.985.12 4 26.985.13 3 1264 Underscores indicate new language. Overstrikes indicate deleted language. The HB1264 ENROLLED An Act to eliminate the Agricultural Land Assessment Implementation and Oversight Advisory Task 1 Force established pursuant Force, and to § 10-6-134 shall make recommendations in the following 2 areas: 3 (1) The proper percentage of annual earning capacity and capitalization rate to be used 4 to determine the agricultural income value pursuant to § 10-6-127; 5 (2) The changes, if any, that must be made to §§ 13-16-7, 13-37-16, and 13-37-35.1 6 to ensure provide that the total amount Department of additional taxes that may be generated on 7 agricultural land by a school district pursuant to Revenue receive the provisions submission of §§ 13-16-7, 13-8 37-16, recommendations and 13-37-35.1 will not provide a substantial property tax revenue increase 9 report on agricultural value. I certify that the attached Act originated in the: House as Bill No. 1264 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1264 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the school district pursuant to the implementation Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the productivity system 10 pursuant to §§ 10-6-127 to 10-6-132, inclusive; 11 (3) The changes, if any, that must be made to §§ 13-16-7, 13-37-16, and 13-37-35.1 12 to ensure that the total amount Secretary of property taxes that may be lost on agricultural 13 land by a school district pursuant to the provisions State Filed ____________, 2026 at _________ o'clock __M. Secretary of §§ 13-16-7, 13-37-16, and 14 13-37-35.1 will not provide a substantial property tax revenue decrease for the 15 school district pursuant to the implementation State By Asst. Secretary of the productivity system pursuant 16 to §§ 10-6-127 to 10-6-132, inclusive; and 17 (4) The distribution of the local effort for the general fund of school districts between 18 the classifications of real property as provided by § 13-13-72.1 which establishes 19 the real property tax contribution from agricultural property for the general fund 20 of school districts as a fixed ratio of the total local effort for such levies. The task 21 force shall also consider the other taxes paid by agricultural property, the 22 relationship of the total assessed value of agricultural property to the total assessed 23 value of all real property, and other factors the task force deems appropriate. 24 State