An Act to revise the classification of agricultural land according to soil type.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 10-6-130 be AMENDED:

10-6-130. All soils shall must be divided into classes based on soil classification standards developed by the United States Department of Agriculture, Natural Resources Conservation Service. All agricultural land shall must be categorized as either cropland or noncropland. Soil map units with land capability class I, II, and III must be categorized as cropland and land capability classes V, VI, VII, and VIII must be categorized as noncropland. Soil map units with land capability class IV may be categorized as cropland except as otherwise provided in this section. The department shall provide each county with soil ratings for all soil types present in the county. The director of equalization shall implement the soil ratings and utilize the ratings as the basis for determining the value of each soil type in the county.

The director may edit and categorize individual soil map units of land capability class IV as noncropland, by using data from a qualified entity that has been approved by the secretary of revenue, if:

(1) The reasonable, probable use of the soil map unit that is physically practical, appropriately supported, financially feasible, and that results in the highest sustainable use of the land, is harvesting crops or plants produced;

(2) The amount of soil map units categorized as noncropland is not more than one hundred and twenty percent of the amount of soil map units categorized as noncropland in the previous year; and

(3) The total sum of all crop-rated soils is greater than ninety-five percent, but less than one hundred and twenty-five percent, of the ten-year average of cropland acres in that county.

The director may make an adjustment to a parcel pursuant to § 10-6-131. The secretary of revenue shall promulgate rules, pursuant to chapter 1-26, providing a process for mediation between a director of equalization and the department regarding disputes of soil classification.