This bill proposes the establishment of a property tax credit for property owners in South Dakota who incur education expenses for children enrolled in nonpublic schools. The credit is applicable to taxes levied by the local school district and is available to property owners regardless of whether the child is their own. Eligible children must be between the ages of five and nineteen and enrolled in kindergarten through twelfth grade at a nonpublic school. The bill specifies that only nonpublic school tuition qualifies as an eligible education expense, and the maximum credit amount cannot exceed either eighty percent of the school district taxes owed or one thousand dollars per year.

To apply for the property tax credit, property owners must submit an application to the county director of equalization by June 1st, including necessary documentation such as school enrollment information and verification of tuition charges. The property tax bill will reflect any credits received, and the bill also outlines that these credits will be deducted from the local effort in the district for funding purposes. Additionally, the Department of Revenue is tasked with creating rules for the application process and required documentation to ensure compliance with the new provisions.