The proposed bill seeks to eliminate all mill levies for property taxation in South Dakota, establishing a maximum tax levy of zero dollars per thousand dollars of taxable valuation. Key amendments include a new requirement for the Bureau of Finance and Management to recommend annual appropriations for political subdivisions to meet necessary expenditures. The bill also revises existing statutes to reflect this zero-dollar cap on tax levies across various governmental entities, including county commissioners, civil townships, municipalities, and school districts, effectively removing previous dollar limits that allowed for varying tax levies based on taxable valuation.

Additionally, the legislation amends provisions related to special education funding and local district tax levies, specifying that no tax may exceed zero dollars per thousand dollars of taxable valuation for certain services, such as ambulance and fire protection. It also introduces a new definition for "level six disability," adjusts allocations for students with disabilities to increase annually based on the consumer price index, and clarifies the procedures for referendums regarding special assessments or bond issues. The bill repeals previous provisions that required adjustments to levies based on local effort and need, thereby streamlining the funding structure for special education and related services.

Statutes affected:
Introduced, 01/06/2026: 7-25-1, 7-27-1, 10-12-13, 10-12-21, 10-12-21.1, 10-12-28, 10-12-28.1, 10-12-28.2, 10-12-32, 10-12-42, 13-13-72, 13-13-72.1, 13-13-92, 13-16-7, 13-37-16, 13-37-35.1, 31-12A-23, 34-11A-20, 31-12-27, 34-31-3, 34-31A-21, 34-31A-22, 46A-3E-1, 50-6A-24, 13-13-71, 13-37-16.2, 13-37-16.3