Bill that would change criteria for classifying ag land for tax purposes passes Friday

PIERRE, S.D. — After falling one vote short on Thursday, a state lawmaker brought back a bill Friday that would change criteria for classifying land as agricultural for tax purposes

Representative Kirk Chaffee of Whitewood significantly removed several key parts of HB 1085 but kept one: Land wouldn’t be eligible to be ag property if it’s been platted for a subdivision with three or more lots.

House members passed the latest version 41-27 and sent it to the Senate. A more stringent version had failed Thursday 34-35.

The slimmer one still didn’t please Representative Scott Odenbach. The Spearfish Republican said most of the properties in the Black Hills used by small producers are platted. He doesn’t think it “really fixes the problem.”

Chaffee said he didn’t know how many properties would be affected and Odenbach tried to remove the platting language but failed 32-36.

Some small businesses, like greenhouses, are afraid the bill will affect them and may make their taxes go up.

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