FOR AN ACT ENTITLED, An Act to  create additional classifications of agricultural property and to revise certain provisions concerning the taxation of certain agricultural property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That § 10-6-31.3 be amended to read as follows:
     10-6-31.3.   For tax purposes, land is class one agricultural land if it meets two of the following three criteria:

             (1)      At least thirty-three and one-third percent of the total family gross income of the owner is derived In three of the previous five years, the operator derived a gross income from the pursuit of agriculture as defined in subdivision (2) of this section or it is a state-owned public shooting area or a state-owned game production area as identified in § 41-4-8 and it is owned and managed by the Department of Game, Fish and Parks; that is at least five percent of the assessed value of the bare land, excluding any improvements. If it is a crop share arrangement, the gross income of both the landlord and the tenant shall be combined and used to meet this criteria;

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             (2)      Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership; and

             (3)      It consists of not less than twenty acres of unplatted land or is a part of a contiguous ownership of not less than eighty acres of unplatted land . The same acreage specifications apply to platted land , excluding land platted as a subdivision , which is in an unincorporated area . However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

     However, for tax purposes, land is not class one agricultural land if the land is classified pursuant to § 10-6-33.14 as a nonagricultural acreage.
     Section  2.  That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     For tax purposes, land is class two agricultural land if it meets two of the following three criteria:

             (1)      In three of the previous five years, the operator derived a gross income from the pursuit of agriculture as defined in subdivision (2) of this section that is at least five percent of the assessed value of the bare land, excluding any improvements. If it is a crop share arrangement, the gross income of both the landlord and the tenant shall be combined and used to meet this criteria;

             (2)      Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership; or

             (3)      It consists of not less than twenty acres of land or is a part of a contiguous ownership of not less than eighty acres of land, excluding land platted as a subdivision. However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

     However, for tax purposes, land is not class two agricultural land if the land is classified pursuant to § 10-6-31.3 as class one agricultural land or § 10-6-33.14 as a nonagricultural acreage.
     Section  3.  That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     The director of equalization may request documentation from the owner or operator to determine whether the owner or operator meets the minimum eligibility criteria for gross income established by subdivision 10-6-31.3(1) or subdivision (1) of section 2 of this Act. If the owner or operator does not provide such documentation, the director of equalization may find that the owner or operator does meet the minimum eligibility criteria for gross income established by subdivision 10-6-31.3(1) or subdivision (1) of section 2 of this Act.
     Section  4.  That § 2-14-2 be amended by adding thereto a NEW SUBDIVISION to read as follows:

     "Agricultural land," any class one agricultural land as defined by §  10-6-31.3 or class two agricultural land as defined by section 2 of this Act, unless otherwise specified.
     Section  5.  That § 10-12-42 be amended to read as follows:
     10-12-42.   For taxes payable in 2006 2007 and each year thereafter, the levy for the general fund of a school district shall be as follows:

             (1)      The maximum tax levy shall be eleven dollars per thousand dollars of taxable valuation subject to the limitations on class one agricultural property land as provided in subdivision (2) of this section, owner-occupied property as provided for in subdivision (3) of this section, and nonagricultural acreage property as provided for in subdivision (4) of this section , and class two agricultural land as provided in subdivision (5) of this section ;

             (2)      The maximum tax levy on class one agricultural property land for such school district shall be three dollars and nineteen cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies;

             (3)      The maximum tax levy for an owner-occupied single-family dwelling as defined in § 10-13-40, for such school district may not exceed five dollars and thirteen cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies; and

             (4)      The maximum tax levy on nonagricultural acreage property as defined in § 10-6- 33.14, for such school district shall be four dollars and nineteen cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies ; and

             (5)      The maximum tax levy on class two agricultural land as defined in section 2 of this Act , for such school district shall be four dollars and nineteen cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies .

     All levies in this section shall be imposed on valuations where the median level of assessment represents eighty-five percent of market value as determined by the Department of Revenue and Regulation. These valuations shall be used for all school funding purposes. If the district has imposed an excess levy pursuant to § 10-12-43, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.
     Section  6.  That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  10-6-31.3, any state-owned public shooting area or a state-owned game production area, as identified in §  41-4-8, and owned and managed by the Department of Game, Fish and Parks shall be classified as class one agricultural land for tax purposes.