Bill > HB1218

This bill establishes a new classification for nonagricultural property for tax purposes, distinguishing between "commercial-operator nonagricultural property" and "commercial-investor nonagricultural property," with specific definitions provided for terms like "ownership holder," "family business," and "material participation" to determine eligibility. Property owners can apply to reclassify their property as commercial-operator nonagricultural property if they or their qualified relatives materially participate in the business on the property, and they must annually submit an affidavit to maintain this classification; failure to do so will result in reclassification as commercial-investor nonagricultural property. The bill also introduces penalties for misrepresenting facts on applications or affidavits, with higher penalties for knowing misrepresentations and lower penalties for negligent ones, and amends tax levy limits for school districts, stipulating that for taxes payable in 2028 and thereafter, the maximum levy for commercial-operator nonagricultural property must be at least 25% lower than the maximum levy for general nonagricultural property.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26842