Governor Dennis Daugaard is waiting to hear from the South Dakota Supreme Court before deciding how to act on two bills passed by the legislature.
Senate Bill 136 allows agricultural land that has crop-rated soils within 50 feet of a lake, river, or stream to be categorized as noncropland if the acreage is seeded to perennial vegetation. Governor Dennis Daugaard is asking the Supreme Court if the bill violates the state’s constitution. Angela Ehlers is the Executive Director of the South Dakota Association of Conservation Districts. She says the Governor is probably looking at the issue of highest and best use.
“The question I guess in my mind is what is highest and best,” Ehlers says. “Is highest and best what makes the most cash in a single year? Or is highest and best use of the land what provides for the long term sustainability of the resource, both soil, water, and the accompanying natural resource. And that’s a question I understand the Governor needs to consult with his legal advisors on.”
The classifications carry different tax values. Teddi Mueller is the Legislative Director for the South Dakota Corn Growers Association. She says her organization supports conservation, but she says there needs to be more research.
“We have no idea what that is going to do amongst that property tax, if it’s going to cause a tax shift, what it’s going to do,” Mueller says. “You have no idea how, the amount of land, we have no idea any of that stuff. So why would we run and shoot from the hip and mess up that property tax system, instead of sitting back, gathering the data that we need, and then make our educated decision on what we need to do.”
The Governor is also asking for the Supreme Court’s opinion on the constitutionality of Senate Bill 159, which provides a tax credit to insurance companies that contribute to an organization providing scholarships to certain students.