This joint resolution seeks to amend South Dakota state law to lower property taxes for owner-occupied properties while increasing certain gross receipts and use tax rates. It proposes specific changes to the tax code, including setting maximum mill levies for school district general funds at $5.21 per $1,000 of taxable valuation for general properties and $1.12 for agricultural properties. For owner-occupied single-family dwellings, the maximum mill levy will be established at $2.00 per $1,000 of taxable valuation, with provisions to maintain proportionality if levies fall below this maximum. The resolution also aims to increase the gross receipts tax rate from 4.2% to 5% on sales of tangible personal property and various services, with the revenue generated intended to support the state's general fund and local effort replacement fund.

Additionally, the resolution introduces amendments to existing tax laws, including an increase in the special amusement excise tax from 4.2% to 5% and the establishment of a local effort replacement fund, which will receive 16% of the taxes collected. This fund is designed to supplement local property tax efforts for school district general funds and special education funds, with oversight from the Department of Education. The resolution also addresses adjustments to local effort and state aid for education, ensuring that appropriations increase annually in line with local needs and mandating proportional reductions in mill levies when local efforts exceed local needs. Overall, the resolution aims to enhance educational funding mechanisms while ensuring fiscal responsibility and equity in resource distribution, with the proposed amendments set to be submitted to voters for approval in the next general election.

Statutes affected:
Introduced, 02/03/2026: 10-12-42, 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-48, 10-46-58, 10-46-69, 10-46-69.1, 10-46-69.2, 10-46E-1, 10-46E-9, 10-58-1, 10-58-5, 13-13-71, 13-13-72, 13-13-72.1, 13-37-16, 13-37-35.1, 32-5B-20