South Dakota 2025 Regular Session

South Dakota House Bill HB1138 Compare Versions

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

Old	New	Differences
1	1	25.414.23 100th Legislative Session 1138
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4	4	2025 South Dakota Legislature
5	5	House Bill 1138
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11	11
12	12	Introduced by: Representative Aylward
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14	14	Underscores indicate new language.
15	15	Overstrikes indicate deleted language.
16	16	An Act to reduce a maximum property tax mill levy on owner -occupied single-family 1
17	17	dwellings for school district general funds, and to repeal certain sales tax 2
18	18	exemptions. 3
19	19	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4
20	20	Section 1. That § 10-12-42 be AMENDED: 5
21	21	10-12-42. For taxes payable in 2025 2026, and each year thereafter, the levy for 6
22	22	the general fund of a school district is as follows: 7
23	23	(1) The maximum tax mill levy is five dollars and fifty-four and four-tenths cents per 8
24	24	thousand dollars of taxable valuation, subject to the limitations on agricultural 9
25	25	property as provided in subdivision (2) of this section and owner-occupied property 10
26	26	as provided in subdivision (3) of this section; 11
27	27	(2) The maximum tax mill levy on agricultural property for the school district is one 12
28	28	dollar and nineteen and seven -tenths cents per thousand dollars of taxable 13
29	29	valuation. If the district's levies are less than the maximum levies as stated in this 14
30	30	section, the mill levies imposed in subdivision (1) and this subdivision must 15
31	31	maintain the same proportion to each other as represented in the mathematical 16
32	32	relationship at the maximum mill levies; and 17
33	33	(3) The maximum tax mill levy for an owner-occupied single-family dwelling pursuant 18
34	34	to § 10-13-40 for the school district is two dollars and sixty-seven and nine-tenths 19
35	35	cents one dollar and ninety-nine and four-tenths cents per thousand dollars of 20
36	36	taxable valuation. 21
37	37	If the a district's levies are less than the maximum levies as stated in this section, 22
38	38	the levies must maintain the same proportion to each other as represented in the 23
39	39	mathematical relationship at of the maximum levies. 24
40	40	All levies in this section must be imposed on valuations where the median level of 25
41	41	assessment represents eighty-five percent of market value, as determined by the 26 25.414.23 2 1138
42	42	Underscores indicate new language.
43	43	Overstrikes indicate deleted language.
44	44	Department of Revenue. These valuations must be used for all school funding purposes. 1
45	45	If the district has imposed an excess levy pursuant to § 10-12-43, the levies must 2
46	46	maintain the same proportion to each other as represented in the mathematical 3
47	47	relationship at the maximum levies in this section. The school district may elect to tax at 4
48	48	less than the maximum amounts set forth in this section. 5
49	49	Section 2. That § 10-45-12.1 be AMENDED: 6
50	50	10-45-12.1. The following services enumerated in the Standard Industrial 7
51	51	Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of 8
52	52	Management and Budget, Office of the President are exempt from the provisions of this 9
53	53	chapter: health 10
54	54	(1) Health services (major group 80); educational 11
55	55	(2) Educational services (major group 82) except schools and educational services not 12
56	56	elsewhere classified (industry no. 8299); social 13
57	57	(3) Social services (major group 83); agricultural 14
58	58	(4) Agricultural services (major group 07) except veterinarian services (group no. 15
59	59	074), and animal specialty services, except veterinary (industry no. 0752); forestry 16
60	60	(5) Forestry services (group no. 085); radio 17
61	61	(6) Radio and television broadcasting (group no. 483); railroad 18
62	62	(7) Railroad transportation (major group 40); local 19
63	63	(8) Local and suburban passenger transportation (group no. 411) except limousine 20
64	64	services; school 21
65	65	(9) School buses (group no. 415); trucking 22
66	66	(10) Trucking and courier services, except air (group no. 421) except and collection and 23
67	67	disposal of solid waste; farm 24
68	68	(11) Farm product warehousing and storage (industry no. 4221); establishments 25
69	69	(12) Establishments primarily engaged in transportation on rivers and canals (group no. 26
70	70	444); establishments 27
71	71	(13) Establishments primarily engaged in air transportation, certified carriers (group no. 28
72	72	451); establishments 29
73	73	(14) Establishments primarily engaged in air transportation, noncertified carriers (group 30
74	74	no. 452) except chartered flights (industry no. 4522) and airplane, helicopter, 31
75	75	balloon, dirigible, and blimp rides for amusement or sightseeing; pipe lines 32
76	76	(15) Pipelines, except natural gas (major group 46); arrangement 33
77	77	(16) Arrangement of passenger transportation (group no. 472); arrangement 34 25.414.23 3 1138
78	78	Underscores indicate new language.
79	79	Overstrikes indicate deleted language.
80	80	(17) Arrangement of transportation of freight and cargo (group no. 473); rental 1
81	81	(18) Rental of railroad cars (group no. 474); water 2
82	82	(19) Water supply (industry no. 4941); sewerage 3
83	83	(20) Sewerage systems (industry no. 4952); security 4
84	84	(21) Security brokers, dealers and flotation companies (group no. 621); commodity 5
85	85	(22) Commodity contracts brokers and dealers (group no. 622); credit 6
86	86	(23) Credit counseling services provided by individual and family social services 7
87	87	(industry no. 8322); construction 8
88	88	(24) Construction services (division C) except industry no. 1752 and locksmiths and 9
89	89	locksmith shops; consumer 10
90	90	(25) Consumer credit reporting agencies, mercantile reporting agencies, and 11
91	91	adjustment and collection agencies (group no. 732), if the debt was incurred 12
92	92	out-of-state and the client does not reside within the state. The following are also 13
93	93	specifically exempt from the provisions of this chapter: financial; 14
94	94	(26) Financial services of institutions subject to tax under chapter 10-43 including loan 15
95	95	origination fees, late payment charges, nonsufficient fund check charges, stop 16
96	96	payment charges, safe deposit box rent, exchange charges, commission on 17
97	97	travelers checks, charges for administration of trusts, interest charges, and points 18
98	98	charged on loans; commissions 19
99	99	(27) Commissions earned or service fees paid by an insurance company to an agent or 20
100	100	representative for the sale of a policy; services 21
101	101	(28) Services of brokers and agents licensed under Title title 47; the 22
102	102	(29) The sale of trading stamps; rentals 23
103	103	(30) Rentals of motor vehicles, as defined by § 32-5-1, leased under a single contract 24
104	104	for more than twenty-eight days; advertising services; services 25
105	105	(31) Services provided by any corporation to another corporation which is centrally 26
106	106	assessed having identical ownership and services provided by any corporation to a 27
107	107	wholly owned subsidiary which is centrally assessed; continuing 28
108	108	(32) Continuing education programs; tutoring 29
109	109	(33) Tutoring; vocational 30
110	110	(34) Vocational counseling, except rehabilitation counseling; and motion 31
111	111	(35) Motion picture rentals to a commercially operated theater primarily engaged in the 32
112	112	exhibition of motion pictures. 33
113	113	Section 3. That § 13-13-71 be AMENDED: 34 25.414.23 4 1138
114	114	Underscores indicate new language.
115	115	Overstrikes indicate deleted language.
116	116	13-13-71. If local effort increases on a statewide aggregate basis by a greater 1
117	117	percentage than local need on a statewide aggregate basis from any one year to the next, 2
118	118	for the following year each of the mill levies specified in subdivision 13-13-10.1(13) shall 3
119	119	§ 10-12-42 must be reduced proportionally so that the percentage increase in local effort 4
120	120	on a statewide aggregate basis equals the percentage increase in need on a statewide 5
121	121	aggregate basis. 6
122	122	Section 4. That § 13-13-72 be AMENDED: 7
123	123	13-13-72. It is the policy of the Legislature that In 2026 and each year thereafter, 8
124	124	the appropriation for state aid to education must increase on an annual basis by the 9
125	125	percentage increase in local need on an aggregate statewide basis so that the relative 10
126	126	proportion of local need paid by local effort and state aid shall remain remains constant. 11
127	127	For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local 12
128	128	effort and state aid shall be adjusted annually to maintain the proportion between state 13
129	129	aid and local property taxes and to reflect adjustments in local effort due to the 14
130	130	implementation of the other revenue base amount as defined in § 13-13-10.1. 15
131	131	Section 5. That § 13-13-72.1 be AMENDED: 16
132	132	13-13-72.1. Any adjustmentsIn 2026 and each year thereafter, any adjustment 17
133	133	in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall 18
134	134	be based on maintaining must maintain the relationship between statewide local effort as 19
135	135	a percentage of statewide local need in the fiscal year succeeding the fiscal year in which 20
136	136	the adjustment is made. For school fiscal years 2017 to 2022, inclusive, the proportion of 21
137	137	local need paid by local effort and state aid shall be adjusted annually to reflect 22
138	138	adjustments in local effort due to the implementation of the other revenue base amount 23
139	139	as defined in § 13-13-10.1. However, if If the levies specified in § 10-12-42 are not 24
140	140	adjusted to maintain this relationship, the target teacher salary, as defined in § 13-13-25
141	141	10.1 shall be, is reduced to maintain the relationship between statewide local effort as a 26
142	142	percentage of statewide local need. 27
143	143	Section 6. That § 10-45-7.1 be REPEALED. 28
144	144	There are hereby exempted from the provisions of this chapter and the 29
145	145	computation of the tax imposed by it, gross receipts from membership fees paid to any 30
146	146	lodging house and hotel membership organization operated for the benefit of its members. 31 25.414.23 5 1138
147	147	Underscores indicate new language.
148	148	Overstrikes indicate deleted language.
149	149	However, this exemption does not apply to any membership fee that represents payment 1
150	150	for tangible personal property, any product transferred electronically, and services 2
151	151	provided by the membership organization. 3
152	152	4