South Dakota 2025 Regular Session

South Dakota House Bill HB1019 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25.317.34 100th Legislative Session 1019
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4	4	2025 South Dakota Legislature
5	5	House Bill 1019
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10	10
11	11
12	12	Introduced by: Representative Venhuizen
13	13
14	14	Underscores indicate new language.
15	15	Overstrikes indicate deleted language.
16	16	An Act to eliminate certain property taxes levied on owner -occupied single-family 1
17	17	dwellings, and to increase certain gross receipts tax rates and use tax rates. 2
18	18	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
19	19	Section 1. It is the intention of the Legislature that the proceeds of the tax rate increases in 4
20	20	sections 3 to 18, inclusive, and section 24 of this Act, are used to supplant all foregone 5
21	21	property tax revenue from a mill levy of zero applied to owner -occupied single-family 6
22	22	dwellings for school district general funds and school district special education funds. 7
23	23	It is the intention of the Legislature that these levies for owner -occupied single-family 8
24	24	dwellings do not affect the mill levies for the other classifications of real property, and do not 9
25	25	adversely affect the total amount of moneys available to school districts through the school 10
26	26	district funding formulas for general funds and special education funds. 11
27	27	Section 2. That § 10-12-42 be AMENDED: 12
28	28	10-12-42. For taxes payable in 2025 2026, and each year thereafter, the levy for 13
29	29	the general fund of a school district is as follows: 14
30	30	(1) The maximum tax mill levy is five dollars and fifty-four and four-tenths cents per 15
31	31	thousand dollars of taxable valuation, subject to the limitations on agricultural 16
32	32	property as provided in subdivision (2) of this section and owner-occupied property 17
33	33	as provided in subdivision (3) of this section; 18
34	34	(2) The maximum tax mill levy on agricultural property for the school district is one 19
35	35	dollar and nineteen and seven -tenths cents per thousand dollars of taxable 20
36	36	valuation. If the district's levies are less than the maximum levies as stated in this 21
37	37	section, the mill levies imposed in subdivisions (1) and (2) must maintain the same 22
38	38	proportion to each other as represented in the mathematical relationship at the 23
39	39	maximum mill levies; and 24 25.317.34 2 1019
40	40	Underscores indicate new language.
41	41	Overstrikes indicate deleted language.
42	42	(3) The maximum tax mill levy for an owner-occupied single-family dwelling pursuant 1
43	43	to § 10-13-40 for the school district is two dollars and sixty-seven and nine-tenths 2
44	44	cents zero dollars and zero cents per thousand dollars of taxable valuation. If the 3
45	45	district's levies are less than the maximum levies as stated in this section, the 4
46	46	levies must maintain the same proportion to each other as represented in the 5
47	47	mathematical relationship at the maximum levies. 6
48	48	All levies in this section must be imposed on valuations where the median level of 7
49	49	assessment represents eighty-five percent of market value as determined by the 8
50	50	Department of Revenue. These valuations must be used for all school funding purposes. 9
51	51	If the district has imposed an excess levy pursuant to § 10-12-43, the levies must 10
52	52	maintain the same proportion to each other as represented in the mathematical 11
53	53	relationship at the maximum levies in this section. The school district may elect to tax at 12
54	54	less than the maximum amounts set forth in this section. 13
55	55	Section 3. That § 10-45-2 be AMENDED: 14
56	56	10-45-2. There is hereby imposed a tax upon the privilege of engaging in business 15
57	57	as a retailer, a tax of four and two-tenths at the rate of five percent upon the gross receipts 16
58	58	of all sales of tangible personal property consisting of goods, wares, or merchandise, 17
59	59	except as otherwise provided in this chapter, sold at retail in the state to consumers or 18
60	60	users. 19
61	61	Section 4. That § 10-45-5 be AMENDED: 20
62	62	10-45-5. There is imposed a tax, at the same rate of four and two-tenths percent 21
63	63	set forth in § 10-45-2, upon the gross receipts of any person from engaging or continuing 22
64	64	in any of the following businesses or services in this state: 23
65	65	(1) abstractersAbstracters; 24
66	66	(2) accountantsAccountants; 25
67	67	(3) ancillaryAncillary services; 26
68	68	(4) architectsArchitects; 27
69	69	(5) barbersBarbers; 28
70	70	(6) beautyBeauty shops; 29
71	71	(7) billBill collection services; 30
72	72	(8) blacksmithBlacksmith shops; 31
73	73	(9) carCar washing; 32
74	74	(10) dryDry cleaning; 33 25.317.34 3 1019
75	75	Underscores indicate new language.
76	76	Overstrikes indicate deleted language.
77	77	(11) dyeingDyeing; 1
78	78	(12) exterminatorsExterminators; 2
79	79	(13) garageGarage and service stations; 3
80	80	(14) garmentGarment alteration; 4
81	81	(15) cleaningCleaning and pressing; 5
82	82	(16) janitorialJanitorial services and supplies; 6
83	83	(17) specialtySpecialty cleaners; 7
84	84	(18) laundryLaundry; 8
85	85	(19) linenLinen and towel supply; 9
86	86	(20) membershipMembership or entrance fees for the use of a facility or for the right to 10
87	87	purchase tangible personal property, any product transferred electronically, or 11
88	88	services; 12
89	89	(21) photographyPhotography; 13
90	90	(22) photoPhoto developing and enlarging; 14
91	91	(23) tireTire recapping; 15
92	92	(24) weldingWelding and all repair services, except repair services for farm machinery, 16
93	93	attachment units, and irrigation equipment used exclusively for agricultural 17
94	94	purposes; 18
95	95	(25) cableCable television; and 19
96	96	(26) rentalsRentals of tangible personal property except leases of tangible personal 20
97	97	property between one telephone company and another telephone company, motor 21
98	98	vehicles as defined pursuant to § 32-5-1 leased under a single contract for more 22
99	99	than twenty-eight days, and mobile homes. 23
100	100	However, theThe specific enumeration of businesses and professions made in this 24
101	101	section does not, in any way, limit the scope and effect of the provisions of § 10-45-4. 25
102	102	Section 5. That § 10-45-5.3 be AMENDED: 26
103	103	10-45-5.3. There is imposed, at the same rate of four and two-tenths percent set 27
104	104	forth in § 10-45-2, an excise tax on the gross receipts of any person engaging in oil and 28
105	105	gas field services (group no. 138) as enumerated in the Standard Industrial Classification 29
106	106	Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management 30
107	107	and Budget, Office of the President. 31
108	108	Section 6. That § 10-45-6 be AMENDED: 32 25.317.34 4 1019
109	109	Underscores indicate new language.
110	110	Overstrikes indicate deleted language.
111	111	10-45-6. There is hereby imposed a tax of four and two-tenths percent, at the 1
112	112	same rate set forth in § 10-45-2, upon the gross receipts from sales, furnishing, or service 2
113	113	of gas, electricity, and water, including the gross receipts from such these sales by any 3
114	114	municipal corporation furnishing gas, and electricity, to the public in its proprietary 4
115	115	capacity, except as otherwise provided in this chapter, when sold at retail in the State of 5
116	116	South Dakota this state to consumers or users. 6
117	117	Section 7. That § 10-45-6.1 be AMENDED: 7
118	118	10-45-6.1. Except as provided in § 10-45-6.2, there is hereby imposed a tax of 8
119	119	four and two-tenths percent, at the same rate set forth in § 10-45-2, upon the gross 9
120	120	receipts from providing any intrastate, interstate, or international telecommunications 10
121	121	service that originates or terminates in this state and that is billed or charged to a service 11
122	122	address in this state, or that both originates and terminates in this state. However, the 12
123	123	tax imposed by this section does not apply to: 13
124	124	(1) Any eight hundred or eight hundred-type service, unless the service both originates 14
125	125	and terminates in this state; 15
126	126	(2) Any sale of a telecommunication service to a provider of telecommunication 16
127	127	services, including access service, for use in providing any telecommunication 17
128	128	service; or 18
129	129	(3) Any sale of interstate telecommunication service provided to a call center that has 19
130	130	been certified by the secretary of revenue to meet the criterion established in § 10-20
131	131	45-6.3 and the call center has provided to the telecommunications service provider 21
132	132	an exemption certificate issued by the secretary indicating that it meets the 22
133	133	criterion. 23
134	134	If a call center uses an exemption certificate to purchase services not meeting the 24
135	135	criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, 25
136	136	and interest. 26
137	137	Section 8. That § 10-45-6.2 be AMENDED: 27
138	138	10-45-6.2. There is hereby imposed a tax of four and two-tenths percent, at the 28
139	139	same rate set forth in § 10-45-2, upon the gross receipts of mobile telecommunications 29
140	140	services, as defined in 4 U.S.C. § 124(7) as of (January 1, 2002), that originate and 30
141	141	terminate in the same state and are billed to a customer with a place of primary use in 31
142	142	this state or are deemed to have originated or been received in this state and to be billed 32
143	143	or charged to a service address in this state if the customer's place of primary use is 33 25.317.34 5 1019
144	144	Underscores indicate new language.
145	145	Overstrikes indicate deleted language.
146	146	located in this state regardless of where the service actually originates or terminates. 1
147	147	Notwithstanding any other provision of this chapter and for purposes of the tax imposed 2
148	148	by this section, the tax imposed upon mobile telecommunication services must be 3
149	149	administered in accordance with 4 U.S.C. §§ 116-126, as in effect on (July 28, 2000). 4
150	150	Section 9. That § 10-45-8 be AMENDED: 5
151	151	10-45-8. Except as otherwise provided in this chapter, there is imposed a tax of 6
152	152	four and two-tenths percent, at the same rate set forth in § 10-45-2, upon the gross 7
153	153	receipts from all sales of tickets or admissions to: 8
154	154	(1) Places of amusement; 9
155	155	(2) Athletic contests; or 10
156	156	(3) Events. 11
157	157	Section 10. That § 10-45-71 be AMENDED: 12
158	158	10-45-71. There is imposed a tax of four and two-tenths percent, at the same 13
159	159	rate set forth in § 10-45-2, on the gross receipts from the transportation of passengers. 14
160	160	The tax imposed by this section applies to any transportation of passengers if the 15
161	161	passenger boards and exits the mode of transportation within this state. 16
162	162	Section 11. That § 10-46-2.1 be AMENDED: 17
163	163	10-46-2.1. For the privilege of using services in South Dakota this state, except 18
164	164	those types of services exempted by § 10-46-17.3, there is imposed on the person using 19
165	165	the service an excise tax equal to four and two-tenths at a rate of five percent of the value 20
166	166	of the services at the time they are rendered. However, this This tax may not be imposed 21
167	167	on any service rendered by a related corporation, as defined in subdivision 10-43-1(11), 22
168	168	for use by a financial institution, as defined in subdivision 10-43-1(4);, or on any service 23
169	169	rendered by a financial institution, as defined in subdivision 10-43-1(4), for use by a 24
170	170	related corporation as defined in subdivision 10-43-1(11) and as provided below. 25
171	171	For the purposes of this section, the term, related corporation, includes a 26
172	172	corporation, which together with the financial institution, is part of a controlled group of 27
173	173	corporations, as defined in 26 U.S.C. § 1563 as in effect on (January 1, 1989), except that 28
174	174	the eighty percent ownership requirements set forth in 26 U.S.C. § 563(a)(2)(A) § 29
175	175	1563(a) for a brother-sister controlled group are reduced to fifty-one percent. 30 25.317.34 6 1019
176	176	Underscores indicate new language.
177	177	Overstrikes indicate deleted language.
178	178	For the purpose of this chapter, services rendered by an employee for the use of 1
179	179	the employer are not taxable. 2
180	180	Section 12. That § 10-46-2.2 be AMENDED: 3
181	181	10-46-2.2. An excise tax is imposed upon the privilege of the use of rented 4
182	182	tangible personal property and any product transferred electronically in this state at the 5
183	183	same rate of four and two-tenths percent set forth in § 10-46-2.1, of on the rental 6
184	184	payments upon the property. 7
185	185	Section 13. That § 10-46-58 be AMENDED: 8
186	186	10-46-58. There is imposed a tax of four and two-tenths percent, at the same 9
187	187	rate set forth in § 10-46-2.1, on upon the privilege of the use of any transportation of 10
188	188	passengers. The tax imposed by this section applies to any transportation of passengers 11
189	189	if the passenger boards and exits the mode of transportation within this state. 12
190	190	Section 14. That § 10-46-69 be AMENDED: 13
191	191	10-46-69. There is hereby imposed a tax of four and two-tenths percent, at the 14
192	192	same rate set forth in § 10-46-2.1, upon the privilege of the use of mobile 15
193	193	telecommunications services, as defined in 4 U.S.C. § 124(7) as of (January 1, 2002), 16
194	194	that originate and terminate in the same state and are billed to a customer with a place 17
195	195	of primary use in this state. Notwithstanding any other provision of this chapter and for 18
196	196	purposes of the tax imposed by this section, the tax imposed upon mobile 19
197	197	telecommunication services must be administered in accordance with 4 U.S.C. §§ 116-20
198	198	126, as in effect on (July 28, 2000). 21
199	199	Section 15. That § 10-46-69.1 be AMENDED: 22
200	200	10-46-69.1. Except as provided in § 10-46-69, there is hereby imposed a tax of 23
201	201	four and two-tenths percent, at the same rate set forth in § 10-46-2.1, upon the privilege 24
202	202	of the use of any intrastate, interstate, or international telecommunications service that 25
203	203	originates or terminates in this state and that is billed or charged to a service address in 26
204	204	this state, or that both originates and terminates in this state. However, the The tax 27
205	205	imposed by this section does not apply to: 28
206	206	(1) Any eight hundred or eight hundred type service, unless the service both originates 29
207	207	and terminates in this state; 30 25.317.34 7 1019
208	208	Underscores indicate new language.
209	209	Overstrikes indicate deleted language.
210	210	(2) Any sale of a telecommunication service to a provider of telecommunication 1
211	211	services, including access service, for use in providing any telecommunication 2
212	212	service; or 3
213	213	(3) Any sale of interstate telecommunication service provided to a call center that has 4
214	214	been certified by the secretary of revenue to meet the criterion established in § 10-5
215	215	45-6.3 and the call center has provided to the telecommunications service provider 6
216	216	an exemption certificate issued by the secretary indicating that it meets the 7
217	217	criterion. 8
218	218	If a call center uses an exemption certificate to purchase services not meeting the 9
219	219	criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, 10
220	220	and interest. 11
221	221	Section 16. That § 10-46-69.2 be AMENDED: 12
222	222	10-46-69.2. There is hereby imposed a tax of four and two-tenths percent, at the 13
223	223	same rate set forth in § 10-46-2.1, upon the privilege of the use of any ancillary services. 14
224	224	Section 17. That § 10-46E-1 be AMENDED: 15
225	225	10-46E-1. There is hereby imposed an excise tax of four and two-tenths five 16
226	226	percent on the gross receipts from the sale, resale, or lease of farm machinery, attachment 17
227	227	units, and irrigation equipment used exclusively for agricultural purposes. However, if If 18
228	228	any trade-in or exchange of used farm machinery, attachment units, and irrigation 19
229	229	equipment is involved in the transaction, the excise tax is only due and may only be 20
230	230	collected on the cash difference. 21
231	231	Section 18. That § 10-58-1 be AMENDED: 22
232	232	10-58-1. There is imposed upon owners and operators a special amusement 23
233	233	excise tax of four and two-tenths five percent of the gross receipts from the sale or the 24
234	234	operation of any mechanical or electronic amusement device. The tax imposed by this 25
235	235	section is in lieu of the tax imposed pursuant to chapter 10-45. 26
236	236	Section 19. That § 13-37-16 be AMENDED: 27
237	237	13-37-16. For taxes payable in 2025 2026, and each year thereafter, the school 28
238	238	board shall levy no more than one dollar and forty -eight and eight-tenths cents per 29
239	239	thousand dollars of taxable valuation of property classified for purposes of taxation as 30 25.317.34 8 1019
240	240	Underscores indicate new language.
241	241	Overstrikes indicate deleted language.
242	242	agricultural property or nonagricultural property, as a special levy in addition to all other 1
243	243	levies authorized by law for the amount so determined to be necessary, and the levy must 2
244	244	be spread against all of the taxable property of the district not classified as owner-occupied 3
245	245	single-family dwellings, as defined in § 10-13-39. The proceeds derived from the levy 4
246	246	constitute a school district special education fund of the district for the payment of costs 5
247	247	for the special education of all children in need of special education or special education 6
248	248	and related services, who reside within the district, pursuant to the provisions of §§ 13-7
249	249	37-8.4 to 13-37-8.10, inclusive. 8
250	250	The levy in this section is based on valuations where the median level of 9
251	251	assessment represents eighty-five percent of market value, as determined by the 10
252	252	Department of Revenue. The total amount of taxes that would be generated at the levy 11
253	253	pursuant to this section is considered local effort. Money in the special education fund may 12
254	254	be expended for the purchase or lease of any assistive technology that is directly related 13
255	255	to special education and specified in a student's individualized education plan. This section 14
256	256	does not apply to real property improvements. 15
257	257	Section 20. That § 13-37-35.1 be AMENDED: 16
258	258	13-37-35.1. Terms used in chapter 13-37 mean: 17
259	259	(1) "Level one disability," a mild disability; 18
260	260	(2) "Level two disability," cognitive disability or emotional disorder; 19
261	261	(3) "Level three disability," hearing impairment, deafness, visual impairment, deaf-20
262	262	blindness, orthopedic impairment, or traumatic brain injury; 21
263	263	(4) "Level four disability," autism; 22
264	264	(5) "Level five disability," multiple disabilities; 23
265	265	(5A) "Level six disability," prolonged assistance; 24
266	266	(6) "Index factor," is the annual percentage change in the consumer price index for 25
267	267	urban wage earners and clerical workers as computed by the Bureau of Labor 26
268	268	Statistics of the United States Department of Labor for the year before the year 27
269	269	immediately preceding the year of adjustment or three percent, whichever is less; 28
270	270	(7) "Local effort," must be calculated for taxes payable in 2025 and thereafter using a 29
271	271	special education levy of one dollar and twenty-eight and eight-tenths cents per 30
272	272	one thousand dollars of taxable valuation of property classified for purposes of 31
273	273	taxation as agricultural property or nonagricultural property; 32
274	274	(8) "Allocation for a student with a level one disability," for the school fiscal year 33
275	275	beginning July 1, 2024, is $7,556.00. For each school year thereafter, the allocation 34 25.317.34 9 1019
276	276	Underscores indicate new language.
277	277	Overstrikes indicate deleted language.
278	278	for a student with a level one disability must be the previous fiscal year's allocation 1
279	279	for the child increased by the index factor; 2
280	280	(9) "Allocation for a student with a level two disability," for the school fiscal year 3
281	281	beginning July 1, 2024, is $16,553.00. For each school year thereafter, the 4
282	282	allocation for a student with a level two disability must be the previous fiscal year's 5
283	283	allocation for the child increased by the index factor; 6
284	284	(10) "Allocation for a student with a level three disability," for the school fiscal year 7
285	285	beginning July 1, 2024, is $22,854.00. For each school year thereafter, the 8
286	286	allocation for a student with a level three disability must be the previous fiscal 9
287	287	year's allocation for the child increased by the index factor; 10
288	288	(11) "Allocation for a student with a level four disability," for the school fiscal year 11
289	289	beginning July 1, 2024, is $17,831.00. For each school year thereafter, the 12
290	290	allocation for a student with a level four disability must be the previous fiscal year's 13
291	291	allocation for the child increased by the index factor; 14
292	292	(12) "Allocation for a student with a level five disability," for the school fiscal year 15
293	293	beginning July 1, 2024, is $36,582.00. For each school year thereafter, the 16
294	294	allocation for a student with a level five disability must be the previous fiscal year's 17
295	295	allocation for the child increased by the index factor; 18
296	296	(12A) "Allocation for a student with a level six disability," for the school fiscal year 19
297	297	beginning July 1, 2024, is $11,692.00. For each school year thereafter, the 20
298	298	allocation for a student with a level six disability must be the previous fiscal year's 21
299	299	allocation for the child increased by the index factor; 22
300	300	(13) "Child count," is the number of students in need of special education or special 23
301	301	education and related services according to criteria set forth in rules promulgated 24
302	302	pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education; 25
303	303	(14) "Fall enrollment," the number of kindergarten -through-twelfth-grade students 26
304	304	enrolled in all schools operated by the school district on the last Friday of 27
305	305	September of the previous school year minus the number of students for whom 28
306	306	the district receives tuition, except any nonresident student who is in the care and 29
307	307	custody of a state agency and is attending a public school and any student for 30
308	308	whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students 31
309	309	for whom the district pays tuition; 32
310	310	(15) "Nonpublic school," a sectarian organization or entity accredited by the secretary of 33
311	311	education for the purpose of instructing children of compulsory school age. This 34 25.317.34 10 1019
312	312	Underscores indicate new language.
313	313	Overstrikes indicate deleted language.
314	314	definition excludes any school that receives a majority of its revenues from public 1
315	315	funds; 2
316	316	(16) "Nonpublic fall enrollment," the number of children under age eighteen, who are 3
317	317	approved for alternative instruction pursuant to § 13-27-3 on the last Friday of 4
318	318	September of the previous school year plus: 5
319	319	(a) For nonpublic schools located within the boundaries of a public school 6
320	320	district with a fall enrollment of six hundred or more on the last Friday of 7
321	321	September of the previous school year, the number of kindergarten -8
322	322	through-twelfth-grade students enrolled on the last Friday of September of 9
323	323	the previous regular school year in all nonpublic schools located within the 10
324	324	boundaries of the public school district; 11
325	325	(b) For nonpublic schools located within the boundaries of a public school 12
326	326	district with a fall enrollment of less than six hundred on the last Friday of 13
327	327	September of the previous school year, the number of resident 14
328	328	kindergarten-through-twelfth-grade students enrolled on the last Friday of 15
329	329	September of the previous school year in all nonpublic schools located 16
330	330	within this state; 17
331	331	(17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment; 18
332	332	(18) "Local need," an amount to be determined as follows: 19
333	333	(a) Multiply the special education fall enrollment by 0.1062 and multiply the 20
334	334	result by the allocation for a student with a level one disability; 21
335	335	(b) Multiply the number of students having a level two disability as reported on 22
336	336	the child count for the previous school fiscal year by the allocation for a 23
337	337	student with a level two disability; 24
338	338	(c) Multiply the number of students having a level three disability as reported 25
339	339	on the child count for the previous school fiscal year by the allocation for a 26
340	340	student with a level three disability; 27
341	341	(d) Multiply the number of students having a level four disability as reported on 28
342	342	the child count for the previous school fiscal year by the allocation for a 29
343	343	student with a level four disability; 30
344	344	(e) Multiply the number of students having a level five disability as reported on 31
345	345	the child count for the previous school fiscal year by the allocation for a 32
346	346	student with a level five disability; 33 25.317.34 11 1019
347	347	Underscores indicate new language.
348	348	Overstrikes indicate deleted language.
349	349	(f) Multiply the number of students having a level six disability as reported on 1
350	350	the child count for the previous school fiscal year by the allocation for a 2
351	351	student with a level six disability; 3
352	352	(g) When calculating local need at the statewide level, include the amount set 4
353	353	aside for extraordinary costs defined in § 13-37-40; 5
354	354	(h) When calculating local need at the statewide level, include the amount set 6
355	355	aside for the South Dakota School for the Blind and Visually Impaired; 7
356	356	(i) Sum the results of subdivisions (18)(a) to (h), inclusive; 8
357	357	(19) "Effort factor," the school district's special education tax levy in dollars per thousand 9
358	358	divided by $1.288. The maximum effort factor is 1.0. 10
359	359	Section 21. That § 13-13-71 be AMENDED: 11
360	360	13-13-71. If local effort increases on a statewide aggregate basis by a greater 12
361	361	percentage than local need on a statewide aggregate basis from any one year to the next, 13
362	362	for the following year each of the mill levies specified in subdivision 13-13-10.1(13) shall 14
363	363	subdivisions 10-12-42(1) and (2) must be reduced proportionally so that the percentage 15
364	364	increase in local effort on a statewide aggregate basis equals the percentage increase in 16
365	365	need on a statewide aggregate basis. 17
366	366	Section 22. That § 13-13-72 be AMENDED: 18
367	367	13-13-72. It is the policy of the Legislature that In 2026 and each year thereafter, 19
368	368	the appropriation for state aid to education must increase on an annual basis annually by 20
369	369	the percentage increase in local need on an aggregate statewide basis so that the relative 21
370	370	proportion of local need paid by local effort and state aid shall remain constant. For school 22
371	371	fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and 23
372	372	state aid shall be adjusted annually to maintain the proportion between state aid and local 24
373	373	property taxes and to reflect adjustments in local effort due to the implementation of the 25
374	374	other revenue base amount as defined in § 13-13-10.1. 26
375	375	Section 23. That § 13-13-72.1 be AMENDED: 27
376	376	13-13-72.1. Any adjustmentsIn 2026 and each year thereafter, any adjustment 28
377	377	in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall 29
378	378	be based on maintaining must maintain the relationship between statewide local effort as 30
379	379	a percentage of statewide local need in the fiscal year succeeding the fiscal year in which 31 25.317.34 12 1019
380	380	Underscores indicate new language.
381	381	Overstrikes indicate deleted language.
382	382	the adjustment is made. For school fiscal years 2017 to 2022, inclusive, the proportion of 1
383	383	local need paid by local effort and state aid shall be adjusted annually to reflect 2
384	384	adjustments in local effort due to the implementation of the other revenue base amount 3
385	385	as defined in § 13-13-10.1. However, if If the levies specified in § 10-12-42 are not 4
386	386	adjusted to maintain this relationship, the target teacher salary, as defined in § 13-13-5
387	387	10.1 shall be, is reduced to maintain the relationship between statewide local effort as a 6
388	388	percentage of statewide local need. 7
389	389	Section 24. That § 32-5B-20 be AMENDED: 8
390	390	32-5B-20. There is hereby imposed a tax of four and two-tenths five percent upon 9
391	391	the gross receipts of any person renting a rental vehicle as defined in § 32-5B-19. This 10
392	392	tax applies to all vehicles registered in accordance with § 32-5-6, 32-5-8.1, or 32-5-9. 11
393	393	Any rental vehicle not licensed in accordance with § 32-5-6, 32-5-8.1, or 32-5-9 is subject 12
394	394	to the motor vehicle excise tax in § 32-5B-1. 13
395	395	The tax imposed by this section is in addition to any tax levied pursuant to chapter 14
396	396	10-45 or 10-46 upon the rental of a rental vehicle. The provisions of chapter 10-45 apply 15
397	397	to the administration and enforcement of the tax imposed by this section. The tax imposed 16
398	398	by this section is in lieu of the tax levied by § 32-5B-1 on the sales of such motor vehicles. 17
399	399	A violation of this section is a Class 1 misdemeanor. 18
400	400	Section 25. Sections 3 to 18, inclusive, and section 24 of this Act are effective beginning 19
401	401	January 1, 2026. 20
402	402	Section 26. That 2023 Session Laws, chapter 32, § 19 be REPEALED: 21
403	403	Section 27. The amendments to the Code sections in sections 1 to 17, inclusive, 22
404	404	of this Act are repealed on June 30, 2027, and those Code sections will revert in word and 23
405	405	substance to that which existed immediately prior to the effective date of this Act. 24