Changes to Existing Law

10-12-13. The board of county commissioners may levy an annual tax tax, not exceeding zero dollars per thousand dollars of taxable valuation, as a reserve fund to be accumulated and used for the purpose of maintaining, repairing, constructing, and reconstructing roads and bridges as follows: (1) A levy not to exceed one dollar and twenty cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is one billion dollars or less; (2) A levy not to exceed ninety cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is more than one billion dollars but less than two billion dollars; and (3) A levy not to exceed sixty cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is two billion dollars or more. Money in the fund may be expended in the laying out, marking, maintaining, constructing, and reconstructing roads and maintaining, constructing, and reconstructing bridges, under the jurisdiction of the board of county commissioners. The tax levy shall be is in addition to all other levies authorized to be made by the board of county commissioners for road and bridge purposes provided for in § 10-12-21. The proceeds of such the levy shall must be placed in a special fund to be known as the county highway and bridge reserve fund. Any increased tax levy imposed pursuant to this section is exempt from the provisions of chapter 10-13, if the county establishes the amount of revenue payable from taxes on real property pursuant to § 10-12-13.1. The total amount of revenue payable from any increased tax levy imposed pursuant to this section may increase no more than the lesser of three percent or the index factor, 31 as defined in § 10-13-38, over the amount of revenue payable in the preceding year. After 32 applying the index factor, a county may increase the revenue payable from taxes on real 33 property above the limitations provided by this section by the percentage increase of value 34 resulting from any improvements or change in use of real property and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal value. 4

Maximum county 10-12-21. The Except for a levy for all purposes. The imposed pursuant to § 10-12-21.1, the total annual county tax levy for all purposes may not exceed twelve zero dollars per thousand dollars of taxable valuation. 8

Levies in addition to limit. 10-12-21.1. A county may levy taxes in addition to the limit prescribed in § 10-12-21 10-10 12-21 for the following purposes: (1) Accumulation for all county buildings and structures pursuant to §§ 7-25-1, 7-27-1, 7-12 27-1, and 34-8-5; (2) Accumulations for interest and principal payments on all county bonds, long-term indebtedness, and judgments pursuant to §§ 7-18-7, 7-22-11, 7-24-18, and 41-18-6; (3) For the highway and bridge reserve fund pursuant to § 10-12-13; (4) For the snow removal and emergency disaster fund pursuant to § 34-5-2; (5) For a railroad authority pursuant to § 49-17A-22; (6) For regional airport authorities pursuant to § 50-6A-24; (7) For secondary roads pursuant to § 31-12-27; (8) For fire protection pursuant to § 34-31-3. 22

Maximum rate of township levy. 10-12-28. The Except for a levy imposed pursuant to § 10-12-27, the total rate of the annual tax levy in civil townships may not exceed three zero dollars per thousand dollars of taxable valuation. 26

Additional township levy for fire protection and emergency medical services. 10-12-28.1. If the allowable tax levy for a township in § 10-12-28 is insufficient to meet other allowable expenses, fire protection expenses, and expenses for emergency medical services, an additional annual tax for the purpose of providing fire protection and emergency medical services may be levied. However, the The additional levy may not exceed one dollar and twenty cents zero dollars per thousand dollars of taxable valuation within the township. 3

Authorization of tax levy for secondary road capital improvement fund. 10-12-28.2. The voters of an organized civil township at the annual township meeting may authorize an annual property tax levy not to exceed fifty zero cents per thousand dollars of the taxable valuation of the township for the secondary road capital improvement fund for projects and purposes as defined in § 31-13-3.1. The secondary road capital improvement tax levy authorized by this section is in addition to the levies authorized in §§ 10-12-28 and 31-13-22. Any tax levy imposed pursuant to this section is exempt from the tax limitations imposed on a township pursuant to chapter 10-13. 11

Maximum rate of levy in municipalities. 10-12-32. In municipalities, the levy may not exceed twenty-seven zero dollars per thousand dollars of taxable valuation. 14

10-12-42. For taxes payable in 2026, 2026 2027, and each year thereafter, the maximum levy for the general fund of a school district is as follows: (1) The maximum tax levy is five dollars and twenty-one and one-tenth cents per thousand dollars of taxable valuation, subject to the limitations on agricultural property as provided in subdivision (2) of this section and owner-occupied property as provided in subdivision (3) of this section; (2) The maximum tax levy on agricultural property for the school district is one dollar and twelve and five-tenths cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies must maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies; and (3) The maximum tax levy for an owner-occupied single-family dwelling pursuant to § 10-13-40 for the school district is two dollars and fifty-one and eight-tenths cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies must maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies. levies zero dollars and zero cents per thousand dollars of taxable valuation. All levies in this section must be imposed on valuations where the median level of assessment represents eighty-five percent of market value as determined by the Department of Revenue. These valuations must be used for all school funding purposes. If the district has imposed an excess levy pursuant to § 10-12-43, the levies must maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section. section as effective for taxes payable in 2026. 10

Legislative policy on annual increase in appropriation for state aid. 13-13-72. It is the policy of the Legislature that the appropriation for state aid to education increase on an annual basis increases annually by the percentage increase in local need on an aggregate statewide basis so that the relative proportion of local need paid by local effort and state aid shall remain constant. For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to maintain the proportion between state aid and local property taxes and to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1. 19

Adjustment to certain levies. 13-13-72.1. Any adjustments in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and § 13-13-72 shall must be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the adjustment is made. For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1. However, if If the levies specified in § 10-12-42 are not adjusted to maintain this relationship, the target teacher salary as defined in § 13-13-10.1 shall must be reduced to maintain the relationship between statewide local effort as a percentage of statewide local need. 30

Certain savings through state aid to education. 31 13-13-92. The state general fund savings obtained through the state aid to education formula from the difference between the school general fund levy for agriculture property for taxes payable in 2018 pursuant to §§ 13-13-71, 13-13-72, and 13-13-72.1 13-13-72.1, and the agriculture property levy adopted by legislative action for taxes payable in 2018, are in place until July 1, 2040. 5

13-16-7. The school schoolExcept to pay the principal and interest on indebtedness of the district, the board of any school district of this state may at the board's discretion authorize an annual levy of a tax not to exceed three zero dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, lease-purchase lease-11 purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to the levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 13-15 16-6 or 13-16-6.2 13-16-6.2, or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby. The total amount of revenue payable from the levy provided in this section may not increase annually by more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated from the taxes payable in 2016. Starting with taxes payable in 2021, the total amount of revenue payable from the levy provided in this section may not increase annually by more than three percent over the amount of revenue that could have been raised in the prior year. After applying three percent, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the 31 percentage increase of value resulting from any improvements or change in use of real 32 property, annexation, minor boundary changes, and any adjustments in taxation of real 33 property separately classified and subject to statutory adjustments and reductions under 34 chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal value. For taxes payable in 2027, 2028, 2029, 2030, and 2031, an increase in revenue payable to a school district allowed under this paragraph may not exceed three percent. A school district may increase the revenue the district receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum, scheduled payment increases on bonds, for a levy directed by the order of a court for the purpose of paying a judgment against the school district, upon the termination of a tax increment financing district pursuant to § 11-9-46, or upon the application of any discretionary formula to real property pursuant to § 10-6-137. Any school district created or reorganized after January 1, 2016, is exempt from the limitation provided by this section for a period of two years immediately following the district's creation. In no year may the annual tax levy provided in this section exceed three dollars per thousand dollars of taxable valuation of the school district for the current year. For purposes of this section, an increase in value resulting from an improvement made to an owner-occupied single-family dwelling does not include additions to, or improvements of, existing structures affixed to land that result in an increase in value of forty percent or less to the owner-occupied single-family dwelling. 20

13-37-16. For taxes payable in 2026, 2026 2027, and each year thereafter, the school board shall levy no more than one dollar and forty-six and two-tenths cents zero dollars and zero cents per thousand dollars of taxable valuation, as a special levy in addition to all other levies authorized by law for the amount so determined to be necessary, and the levy must be spread against all of the taxable property of the district. The proceeds derived from the levy constitute a school district special education fund of the district for the payment of costs for the special education of all children in need of special education or special education and related services who reside within the district pursuant to the provisions of §§ 13-37-8.4 to 13-37-8.10, inclusive. The levy in this section is based on valuations where the median level of assessment represents eighty-five percent of market 31 value as determined by the Department of Revenue. The total amount of taxes that would 32 be generated at the levy pursuant to this section is considered local effort. Money in the 33 special education fund may be expended for the purchase or lease of any assistive 34 technology that is directly related to special education and specified in a student's individualized education plan. This section does not apply to real property improvements. Source: SDC Supp 1960, § 15.3004 (12) as added by SL 1965, ch 53, § 2; SL 1966, ch 43; SL 1968, ch 51, § 6; SL 1969, ch 58; SL 1975, ch 128, § 239; SL 1976, ch 122, § 3; SL 1989, ch 87, § 15N; SL 1990, ch 195, § 1; SL 1995, ch 101, § 14; SL 1998, ch 96, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 78, § 4; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2013, ch 79, § 7; SL 2014, ch 91, § 1; SL 2015, ch 95, § 1; SL 2016, ch 93, § 1; SL 2017, ch 76, § 4; SL 2018, ch 92, § 3; SL 2019, ch 85, § 1; SL 2020, ch 59, § 1; SL 2021, ch 73, § 13; SL 2021, ch 78, § 3; SL 2022, ch 41, § 3; SL 2023, ch 30, § 3; SL 2024, ch 59, § 3; SL 2025, ch 47, § 3. 2

Definitions. 13-37-35.1. Terms used in chapter 13-37 mean: (1) "Level one disability," a mild disability; (2) "Level two disability," cognitive disability or emotional disorder; (3) "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, deaf-7 blindness, orthopedic impairment, or traumatic brain injury; (4) "Level four disability," autism; (5) "Level five disability," multiple disabilities; (5A) "Level six disability," prolonged assistance; (6) "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment, or three percent, whichever is less; (7) "Local effort," must be calculated for taxes payable in 2026 2027 and each year thereafter using a the maximum special education levy of one dollar and twenty-six twenty-17 six and two-tenths cents per one thousand dollars of valuation; valuation set forth in § 13-18 37-16; (8) "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 2025, is $7,650.45. For each school year thereafter, the allocation for a student with a level one disability must be the previous fiscal year's allocation for the child increased by the index factor; (9) "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 2025, is $16,759.91. For each school year thereafter, the allocation for a student with a level two disability must be the previous fiscal year's allocation for the child increased by the index factor; (10) "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 2025, is $23,139.68. For each school year thereafter, the allocation for a student with a level three disability must be the previous fiscal year's allocation for the child increased by the index factor; 31 (11) "Allocation for a student with a level four disability," for the school fiscal year 32 beginning July 1, 2025, is $18,053.89. For each school year thereafter, the 33 allocation for a student with a level four disability must be the previous fiscal year's allocation for the child increased by the index factor; (12) "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 2025, is $37,039.28. For each school year thereafter, the allocation for a student with a level five disability must be the previous fiscal year's allocation for the child increased by the index factor; (12A) "Allocation for a student with a level six disability," for the school fiscal year beginning July 1, 2025, is $11,838.15. For each school year thereafter, the allocation for a student with a level six disability must be the previous fiscal year's allocation for the child increased by the index factor; (13) "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education; (14) "Fall enrollment," the number of kindergarten-through-twelfth-grade students enrolled in all schools operated by the school district on the last Friday of September of the previous school year minus the number of students for whom the district receives tuition, except any nonresident student who is in the care and custody of a state agency and is attending a public school and any student for whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays tuition; (15) "Nonpublic school," a sectarian organization or entity accredited by the secretary of education for the purpose of instructing children of compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds; (16) "Nonpublic fall enrollment," the number of children under age eighteen, who are approved for alternative instruction pursuant to § 13-27-3 on the last Friday of September of the previous school year plus: (a) For nonpublic schools located within the boundaries of a public school district with a fall enrollment of six hundred or more on the last Friday of September of the previous school year, the number of kindergarten-through-twelfth-grade kindergarten-30 through-twelfth-grade students enrolled on the last Friday of September of 31 the previous regular school year in all nonpublic schools located within the 32 boundaries of the public school district; 33 (b) For nonpublic schools located within the boundaries of a public school 34 district with a fall enrollment of less than six hundred on the last Friday of 35 September of the previous school year, the number of resident kindergarten-through-twelfth-grade students enrolled on the last Friday of September of the previous school year in all nonpublic schools located within this state; (17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment; (18) "Local need," an amount to be determined as follows: (a) Multiply the special education fall enrollment by 0.1062 and multiply the result by the allocation for a student with a level one disability; (b) Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability; (c) Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability; (d) Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability; (e) Multiply the number of students having a level five disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level five disability; (f) Multiply the number of students having a level six disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level six disability; (g) When calculating local need at the statewide level, include the amount set aside for extraordinary expenses defined in § 13-37-40; (h) When calculating local need at the statewide level, include the amount set aside for the South Dakota School for the Blind and Visually Impaired; and (i) Sum the results of subdivisions (18)(a) to (h), inclusive; and (19) "Effort factor," the school district's special education tax levy in dollars per thousand divided by $1.262. The maximum effort factor is 1.0. 1.0 zero and zero-tenths. 30

Tax levy for secondary roads in unorganized territory. 31-12-27. Each board of county commissioners may levy annually a tax tax, not exceeding zero dollars per thousand dollars of taxable valuation, upon the taxable property within the county not included in any municipality, organized civil township, improvement district organized pursuant to chapter 7-25A, or county road district organized pursuant to chapter 31-12A, to carry out the provisions of § 31-12-26. If a county levies a tax, the tax shall must be certified, become payable and delinquent, and, if not paid, shall draw interest and penalty as other county taxes. The tax shall must be used for such purposes. Source: SDC 1939, § 28.0408; SL 1992, ch 60, § 2; SL 1995, ch 170, § 2; SL 2002, ch 143, § 1; SL 2011, ch 136, § 2. purposes provided in this section. 13

34-31-3. For the purpose of carrying out the provisions of §§ 34-31-1 and 34-31-2, 34-31-15 2, the board of county commissioners may levy a tax not to exceed sixty zero cents per thousand dollars of taxable valuation in the county outside the limits of any municipality which that provides fire protection service. However, the The governing body of any municipality may by ordinance petition the board of county commissioners to include the taxable valuation within the limits of the municipality under the aforementioned levy for county fire protection service. The inclusion of the taxable valuation within the limits of the municipality under the levy for county fire protection service shall be is in addition to the municipal levy for fire protection as provided in chapter 9-33. The proceeds of such the tax shall must be used only for the purposes of §§ 34-31-1 and 34-31-2 in the county in which the tax is levied and unexpended balances at the end of the fiscal year may not revert to the general fund but shall must be permitted to accumulate and shall must be available for carrying out the purposes of §§ 34-31-1 and 34-31-2. The levy authorized by this section is in addition to the levy authorized in § 10-12-21. 28

7-25-1. The board of county commissioners may levy a tax not to exceed ninety zero cents per thousand dollars of taxable valuation to be used or paid into a fund for the purpose of acquiring a site, constructing, renovating, improving, remodeling, altering, adding to, repairing, erecting, or maintaining a courthouse, office, jail building, county exhibition buildings, buildings building, 4-H and extension buildings, grandstands building, grandstand and bleachers, highway maintenance buildings, buildings building, or public library. The county may cooperate in a joint undertaking for any of the foregoing purposes with any other county, municipality or school district. The levy authorized by this section is in addition to the levy authorized in § 10-12-21. The proceeds of the levy authorized by this section may be pledged by the county to payments under an agreement entered into pursuant to § 7-25-19 without regard to the limitations of § 7-25-3. 18

7-27-1. The county commissioners may erect, maintain, repair, remodel, and otherwise improve upon any ground owned or acquired by purchase, including by contract for deed or lease with purchase option, lease, gift, bequest, or otherwise, any building to be used for the exhibition of stock, farm produce, school work, and domestic arts, or for the sale of livestock, or for farmers' or other meetings or any other purpose which in the discretion of the county commissioners is to the benefit of the best interests of the county. The board may purchase, including by contract for deed or lease with purchase option, lease, or otherwise acquire by gift, bequest, or otherwise, any other real property in the county with or without buildings thereon, or lease space in any building within the county, for any of the above specified above-specified purposes. The county commissioners may levy a tax for any of the these purposes not to exceed thirty zero cents per thousand dollars of taxable valuation of taxable property in the county. The levy authorized by this section is in addition to the levy authorized in § 10-12-21. 8