This bill amends existing laws regarding property tax levies for school districts in South Dakota, specifically reducing the maximum property tax mill levy on owner-occupied single-family dwellings from $2.67 to $1.99 per thousand dollars of taxable valuation, effective for taxes payable in 2026 and thereafter. Additionally, it establishes that the maximum mill levy for agricultural property will remain at $1.19 per thousand dollars of taxable valuation. The bill also includes provisions to ensure that if a district's levies are below the maximum, they must maintain proportionality to each other. Furthermore, it mandates that all levies must be based on valuations where the median level of assessment represents 85% of market value, as determined by the Department of Revenue.

In addition to the property tax changes, the bill repeals certain sales tax exemptions and introduces new exemptions for various services, including health, educational, social, agricultural, and transportation services. It also specifies that adjustments in levies must maintain the relationship between statewide local effort and local need, ensuring that state aid to education increases annually in line with local needs. The bill aims to create a more equitable funding structure for education while reducing the tax burden on homeowners.

Statutes affected:
Introduced, 01/29/2025: 10-12-42, 10-45-12.1, 13-13-71, 13-13-72, 13-13-72.1, 10-45-7.1