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Bill

HB 1143

require that the director of equalization adjust certain agricultural land values.

2025 Regular Session Introduced by Trish Ladner and 1 co-sponsor

South Dakota law now requires the Director of Equalization to adjust agricultural land valuations, potentially reducing farmland property taxes and affecting local government revenues.

Signed by the Governor on 2025-03-31 H.J. 552
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Bill Summary · HB 1143

Legislative bill overview

HB 1143 requires South Dakota's Director of Equalization to adjust the valuation methodology for agricultural land, likely to better reflect current market conditions or address perceived inequities in how farmland is assessed for property tax purposes. The bill has been signed into law as of March 31, 2025, with overwhelming bipartisan support in the House (67-2 vote).

Why is this important

Agricultural land assessments directly affect property tax bills for farmers and ranchers, who are economically sensitive to tax burden changes. Adjusting valuation methods can shift the tax burden between agricultural and non-agricultural property owners, impacting rural economies and local government revenue streams that depend on property tax collections.

Potential points of contention

  • Revenue impact on local governments: Changes to agricultural land valuations may reduce property tax revenue for counties, schools, and municipalities that rely on these assessments, potentially necessitating rate increases elsewhere
  • Fairness concerns: Agricultural interests may seek lower valuations to reduce taxes, while non-agricultural property owners could face higher assessments to maintain local revenue, raising equity questions
  • Implementation details: The bill's text doesn't specify the adjustment methodology, leaving discretion to the Director of Equalization, which could create uncertainty about how drastically assessments will change

Compiled from official sources — confirm details with the bill’s official record.

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