create a new class of nonagricultural property for purposes of taxation, and to provide a penalty therefor.

HB 1218 creates two new tax classifications for nonagricultural property in South Dakota: "commercial-operator" (for properties actively managed by owners/families) and "commercial-investor" (for other nonagricultural property). It requires property owners to apply annually by August 1st to qualify for the lower-tax "commercial-operator" status, proving they or a family member materially participate in the business. Owners who falsely claim eligibility face a Class 1 misdemeanor penalty. This directly affects commercial property owners, particularly family-run businesses seeking lower tax rates. The bill modifies existing tax code to define these categories and establish the reclassification process.