Legislation redefining agricultural land heads to Gov. Noem's desk after Senate approval
Legislation that would change the definition of agricultural land for tax purposes will head to Gov. Kristi Noem's desk for signing, but not without reservations from some senators.
House Bill 1085 changes the tax code so that land could be classified as agricultural — and receive any ensuing tax breaks — if its "principal use" is agricultural. Additionally, in three of the past five years, the landowner must have received an annual gross income of at least $2,500 from the "pursuit of agriculture."
Under current statute, land is agricultural if the gross income derived from agriculture is "at least 10% of the taxable valuation of the bare land assessed as agricultural property."