FOR AN ACT ENTITLED, An Act to revise the title of the task force responsible for implementing and overseeing the assessment of agricultural land and to assign the task force certain other oversight responsibilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 10-6-33.35 be amended to read as follows:
    10-6-33.35. There is hereby established the Agricultural Land Assessment Implementation and Oversight Advisory Property Assessment Task Force. The task force shall consist of the following fourteen members:

            (1)    The speaker of the House of Representatives shall appoint four members of the House of Representatives, no more than two of whom may be from one political party;

            (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,

no more than two of whom may be from one political party; 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 initial appointments shall be made no later than July 1, 2008, and shall serve until January 12, 2009. 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 equal and uniform assessment and taxation of agricultural lands of all real property and shall review the implementation of the provisions of law concerning the assessment and taxation of agricultural land real property. 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.

    The task force shall make recommendations in the following areas:

            (1)    The proper percentage of annual earning capacity to be used to determine the agricultural income value pursuant to § 10-6-33.28;

            (2)    The proper capitalization rate in order to have total taxable valuation for the taxes payable in 2011 from agricultural property be not more than total taxable valuation for the taxes payable in 2010 from agricultural property plus the estimated growth in agricultural property value in 2010;

            (3)    The changes, if any, that must be made to §§ 13-10-6, 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 §§ 13-10-6, 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 §§ 10-6-33.28 to 10-6-33.33, inclusive;

            (4)    The changes, if any, that must be made to §§ 13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of property taxes that may be lost on agricultural land by a school district pursuant to the provisions of §§ 13-10-6, 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 productivity system pursuant to §§ 10-6-33.28 to 10-6-33.33, inclusive; and

            (5)    The equal and uniform assessment of all real property; and

            (6)    The distribution of the local effort for the general fund 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. The task force shall also consider the other taxes paid by agricultural property, the relationship of the total assessed value of agricultural property to the total assessed value of all real property, and other factors the task force deems appropriate.
    Section 2. That § 10-6-33.13 be amended to read as follows:
    10-6-33.13. The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning the:

            (1)    Collection and tabulation of information required to determine median appraisal or sales assessment ratio, and coefficient of dispersion;

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            (2)    Criteria to be included in a compliance audit of assessment practices;

            (3)    Conditions under which a certificate of compliance may be issued to a county;

            (4)    Procedures for determining the valuation of agricultural buildings and structures;

            (5)    Procedures for determining the valuation of dwellings on agricultural land and automobile garages or portions of buildings used as automobile garages;

            (6)    Application of cropland and noncropland income values;

            (7)    Application of soil classification standards; and

            (8)    Procedures for making adjustments to the value of agricultural land pursuant to §§ 10-6-33.28 to 10-6-33.33, inclusive.

    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 Property Assessment Task Force established pursuant to § 10-6-33.35.
    Section 3. That § 10-6-33.29 be amended to read as follows:
    10-6-33.29. The secretary of revenue shall enter into contracts with South Dakota State University and, if necessary, the South Dakota Agricultural Statistics Service for the purpose of creating a database to determine the agricultural income value of agricultural land by county. The cropland data may include: acres planted, acres harvested, yield per acre, and statewide crop prices. The noncropland data may include: cash rents, rangeland acres, pastureland acres, rangeland AUM's per acre, pastureland AUM's per acre, grazing season data, and statewide cow and calf prices. The Agricultural Land Assessment Implementation and Oversight Advisory Property Assessment Task Force may recommend other cropland and noncropland data to the Legislature for subsequent use in the database. The secretary shall have such data collected for 2001, which will serve as the first year of the database, and each year thereafter. The database shall consist of the most recent eight years of data that have been collected and the two years,

one year representing the highest agricultural income value and one year representing the lowest agricultural income value, shall be discarded from the database. The database for the 2010 assessment for taxes payable in 2011 shall consist of data from 2001 to 2008, inclusive, and the database for each assessment year thereafter shall be adjusted accordingly. South Dakota State University shall provide the data for each county to the secretary of revenue by June first of each year.
    Section 4. That § 10-6-33.30 be amended to read as follows:
    10-6-33.30. The economics department of South Dakota State University shall submit recommendations to the Agricultural Land Assessment Implementation and Oversight Advisory Property Assessment Task Force by November 1, 2008, regarding factors to use for the percentage of annual earning capacity to be used to determine the agricultural income value of the land pursuant to § 10-6-33.28 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, the economics department shall submit such recommendations, if any, to the task force by September first of each year.