HB 1264 — eliminate the Agricultural Land Assessment Implementation and Oversight Advisory Task Force, and to provide that the Department of Revenue receive the submission of recommendations and provide a report on agricultural value.

26.985.1226.985.13 101st Legislative Session 1264 South Dakota Legislature House Bill 1264 IntroducedENROLLED by:AN A CT ENTITLED An Act to eliminate the Agricultural Land Assessment Implementation and Oversight Advisory Task Force, and to provide that the Department of Revenue receive the submission of recommendations and provide a report on agricultural value.

RepresentativeB OverwegE AnIT ActENACTED toBY eliminateTHE theL AgriculturalEGISLATURE LandOF AssessmentTHE ImplementationS andTATE OversightOF AdvisoryS TaskOUTH Force,D andAKOTA to: provide that the Department of Revenue receive the submission of recommendations and provide a report on agricultural value.

B E IT ENACTED BY THE L EGISLATURE OF THE STATE OF SOUTH D AKOTA :

The secretary of revenue the department may promulgate rules pursuant to chapter 1-26 concerning the:

Before the secretary promulgates any rules pursuant to subdivision (4) to (8), inclusive, the secretary shall present the proposed rules to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force established pursuant to § 10-6-134.

Overstrikes10-6-128. indicate deleted language.

26.985.12The 2secretary 1264of 10-6-128.the department may contract with one or more qualified entities for the purpose of creating or maintaining a database to determine the agricultural income value of agricultural land by county, consisting of eight consecutive years of cropland data and noncropland data.

The secretarydata offor revenue,the uponyear notifyingrepresenting the Agriculturalhighest Landagricultural Assessmentincome Implementationvalue andamong Oversightthe Advisoryeight Taskyears Force,and the departmentyear mayrepresenting contract with one or more qualified entities for the purpose26.985.13 of2 creating1264 orlowest maintainingagricultural aincome databasevalue toamong determine the agriculturaleight incomeyears valuemust ofbe agriculturaldiscarded landfrom bythe county,database consistingand ofthe eightremaining consecutivesix years ofaveraged croplandfor datavaluation andpurposes. noncropland data.

TheFor dataeach forassessment theyear, year representing the highestfirst agricultural income value among the eight years and the year representingof the lowesteight-year agriculturaldata incomeperiod valueis amongnine the eight years shallprior mustto be discarded from the databaseassessment andyear. the remaining six years averaged for valuation purposes.

For each assessment year, the first year of the eight-year data period shall be the year that is nine years less than prior to the assessment year.

Any A qualified entity contracting with the secretary of revenue the department pursuant to this section shall provide the data for each county to the secretary of revenue by June first of each year.

The economics department of South Dakota State University shall An entity contracting with the department pursuant to § 10-6-128 may submit recommendations to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force by November 1, 2008, regarding the factors to use for the percentage of annual earning capacity to be used to determine the agricultural income value of the land pursuant to § 10-6-12710-6-127. and other provisions used to assess agricultural land that will provide the least amount of shift between cropland and noncropland on a statewide basis.

Thereafter,Any therecommendations economicsunder this section must be submitted to the department shallby submitSeptember such.first of each year.

AnySection recommendations,4. if any, to the task force under this section must be submitted to the department by September first of each year.

Overstrikes indicate deleted language.

26.985.12 3 1264 Section 4.

There is hereby established the Agricultural Land Assessment Implementation and Oversight Advisory Task Force.

The task force consists of the following fourteen members:

(1) The speaker of the House of Representatives shall appoint four members of the House of Representatives.

The speaker shall appoint members in a manner that is proportional to a party's representation in the House of Representatives, except the speaker shall appoint at least one member from the minority party in the House of Representatives;

(2) The speaker of the House of Representatives shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background;

(3) The president pro tempore of the Senate shall appoint four members of the Senate.

The president pro tempore shall appoint members in a manner that is proportional to a party's representation in the Senate, except the president pro tempore shall appoint at least one member from the minority party in the Senate;

and (4) The president pro tempore of the Senate shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background.

The speaker of the House of Representatives and president pro tempore of the Senate before the close of each regular session of the Legislature held in odd-numbered years shall appoint members to the task force for a term of two years.

If there is a vacancy on the task force, the vacancy shall be filled in the same manner as the original appointment.

The task force shall advise the department regarding the rules promulgated by the department to administer the provisions concerning the assessment and taxation of agricultural lands and shall review the implementation of the provisions of law concerning the assessment and taxation of agricultural land.

The task force shall report to the Senate and House of Representatives and may submit a copy of its report to the Governor.

The task force may present draft legislation and policy recommendations to the Legislative Research Council Executive Board.

OverstrikesHB1264 indicateENROLLED deleted26.985.13 language.3 1264 An Act to eliminate the Agricultural Land Assessment Implementation and Oversight Advisory Task Force, and to provide that the Department of Revenue receive the submission of recommendations and provide a report on agricultural value.

26.985.12Received 4at 1264this TheExecutive AgriculturalOffice LandI Assessmentcertify Implementationthat andthe Oversightattached AdvisoryAct Taskoriginated Forcein establishedthis pursuant_____ today §of 10-6-134_____________, shallthe: make recommendations in the following areas:

(1)at The____________M. proper percentage of annual earning capacity and capitalization rate to be used to determine the agricultural income value pursuant to § 10-6-127;

(2)House Theas changes,Bill ifNo. any, that must be made to §§ 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of additional taxes that may be generated on agricultural land by a school district pursuant to the provisions of §§ 13-16-7, 13- 37-16, and 13-37-35.1 will not provide a substantial property tax revenue increase for the school district pursuant to the implementation of the productivity system pursuant to §§ 10-6-127 to 10-6-132, inclusive;

(3)1264 TheBy changes,Chief ifClerk any,of thatthe mustHouse befor made to §§ 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the totalGovernor amountThe ofattached propertyAct taxesis thathereby mayapproved bethis lost________ onday agricultural land by a school district pursuant to the provisions of §§Speaker 13-16-7, 13-37-16, and 13-37-35.1 will not provide a substantial property tax revenue decrease for the school district pursuant to the implementation of the productivityHouse system______________, pursuantA.D., to2026 §§Attest: 10-6-127 to 10-6-132, inclusive;

andGovernor (4)Chief TheClerk distribution of the localHouse effortSTATE forOF theSOUTH generalDAKOTA, fundss. of school districts between the classifications of real property as provided by § 13-13-72.1 which establishes the real property tax contribution from agricultural property for the general fund of school districts as a fixed ratio of the total local effort for such levies.

TheOffice task force shall also consider the other taxes paid by agricultural property, the relationship of the totalSecretary assessed value of agriculturalState propertyPresident to the total assessed value of all real property, and other factors the taskSenate forceFiled deems____________, appropriate.2026 Attest:

Overstrikesat indicate_________ deletedo'clock language.__M.

Secretary of the Senate Secretary of State House Bill No.

1264 By File No.

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