The bill amends South Dakota law concerning property tax levies for school districts and the formulas for state aid related to education funding. It reduces the general fund tax levy for school districts from $5.21 to $4.87 per thousand dollars of taxable valuation, effective for taxes payable in 2027 and beyond. Additionally, the maximum tax levy on agricultural property is decreased from $1.12 to $1.05, and the levy for owner-occupied single-family dwellings is adjusted from $2.51 to $2.35. These changes aim to align tax levies with current economic conditions while ensuring adequate resources for school districts.

The bill also revises the definitions and calculations for state aid, including the target teacher salary, which is set at $62,821.19 for the fiscal year beginning July 1, 2026, with future adjustments based on the consumer price index. It updates allocations for students with disabilities and introduces a detailed methodology for determining local needs based on the number of students with varying levels of disabilities. Furthermore, the bill modifies the "effort factor" by changing the divisor from $1.262 to $1.229, impacting the calculation of the special education tax levy while maintaining the maximum effort factor cap at 1.0.

Statutes affected:
Introduced, 01/09/2026: 10-12-42, 13-13-10.1, 13-37-16, 13-37-35.1