ENTITLED, An Act to revise certain real property taxes for small renewable energy facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. For purposes of this Act, a renewable resource is a resource that generates electricity or energy from facilities using one or more of the following sources:

            (1)    Wind that uses wind as the source of energy to produce electricity;

            (2)    Solar that uses the sun as the source of energy to produce electricity or energy;

            (3)    Hydroelectric that uses water as the source of energy to produce electricity;

            (4)    Hydrogen that is generated from one of the sources listed in this section;

            (5)    Biomass that uses agricultural crops and agricultural wastes and residues, wood and wood wastes and residues, animal and other degradable organic wastes, municipal solid waste, or landfill gas as the fuel to produce electricity; or

            (6)    Geothermal that uses energy contained in heat that continuously flows outward from the earth as the source of energy to produce electricity or energy.
    Section 2. For purposes of this Act, a renewable energy facility is a facility that uses a renewable resource as its energy source for the purpose of producing electricity or energy.
    Section 3. For renewable energy facilities with less than five megawatts of nameplate capacity, all real property used or constructed for the purpose of producing electricity using a renewable resource as an energy source is classified for tax purposes as renewable energy property and shall be assessed and taxed in the same manner as other real property and shall be locally assessed by the county director of equalization pursuant to § 10-3-16. For the purposes of this Act, the first fifty thousand dollars of the assessed value of the renewable energy property or seventy percent of the assessed value of the renewable energy property, whichever is greater, is exempt from the real property tax. However, for geothermal renewable energy facilities that produce energy, but not

electricity, this exemption is limited to the first four continuous years for residential geothermal renewable energy facilities and the first three continuous years for commercial geothermal renewable energy facilities.
    Section 4. Renewable energy property is not subject to any discretionary formulas authorized by Title 10.
    Section 5. That § 10-4-36 be repealed.
    Section 6. That § 10-4-37 be repealed.
    Section 7. That § 10-4-38 be repealed.
    Section 8. That § 10-6-35.8 be repealed.
    Section 9. That § 10-6-35.9 be repealed.
    Section 10. That § 10-6-35.10 be repealed.
    Section 11. That § 10-6-35.11 be repealed.
    Section 12. That § 10-6-35.12 be repealed.
    Section 13. That § 10-6-35.13 be repealed.
    Section 14. That § 10-6-35.14 be repealed.
    Section 15. That § 10-6-35.15 be repealed.
    Section 16. That § 10-6-35.16 be repealed.
    Section 17. That § 10-6-35.17 be repealed.
    Section 18. That § 10-6-35.18 be repealed.

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An Act to revise certain real property taxes for small renewable energy facilities.

========================= I certify that the attached Act originated in the SENATE as Bill No. 58 ____________________________ Secretary of the Senate =========================     ____________________________ President of the Senate Attest: ____________________________ Secretary of the Senate ____________________________ Speaker of the House Attest: ____________________________ Chief Clerk Senate Bill No. 58 File No. ____ Chapter No. ______

========================= Received at this Executive Office this _____ day of _____________ , 20____ at ____________ M. By _________________________ for the Governor ========================= The attached Act is hereby approved this ________ day of ______________ , A.D., 20___ ____________________________ Governor ========================= STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________ , 20___ at _________ o'clock __ M. ____________________________ Secretary of State By _________________________ Asst. Secretary of State