Property tax adjustment bills have received more attention and discussion this session.
The bill sought to allow for ag land to be classified as noncropland, and thus taxed at a different rate, if it met certain criteria with proponents citing a tax system that does not work for certain pieces of ag land and the change being a necessity to correct this issue for these specific pieces of land.
Another property tax adjustment proposal that met its demise was House Bill 1203, which establishes a revenue neutral rate for property taxes and requires a public hearing to increase.
The bill essentially sought to freeze property taxes by holding revenue collected at the previous year’s level and should more revenue be sought local government units would have to go through multiple processes to get their levies raised to meet their revenue needs. Proponents of the bill said the aim was for tax relief.
The bill allows for class 4 soil types to be classified as non-cropland if it meets specific criteria, which Rep. Kirk Chaffee, the bill’s prime sponsor, said would help “find the right value” for the land to be taxed at.
SD Corn Growers Association Lobbyist Matt McCaulley argued the change in designation would result in a valuation change that “needs to be made up somewhere else” and could cause a “broad shift” in tax responsibility that could “have unintended consequences.”
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