A Senate committee is rejecting a proposal that would reduce taxes for some ranchers.
The bill would allow ranchers to change the tax classification of land above 1,950 feet in elevation that’s remained grassland for 20 years.
Over a decade ago, lawmakers shifted ag taxes from production-based to a system based on soil types.
Republican state Sen. Jessica Castleberry, of Rapid City, says current law places an unbalanced tax burden on the shoulders of a few thousand ranchers.
“Encouraging cropping land in high elevation with low precipitation, short growing season and classified as semi-arid is a bad idea regardless of how much revenue any state entity perceives it could receive from this kind of irresponsible decision making," Castleberry says.
Critics say the bill would create a $12.5 million property tax shift to businesses and homeowners.
Governor Kristi Noem opposes the legislation. A Senate committee rejected it 6-1.
