HB 1051 — revise property tax levies for school districts and to revise the state aid to general and special education formulas.

26.537.1926.537.20 101st Legislative Session 1051 South Dakota Legislature House Bill 1051 JOINTENROLLED APPROPRIATIONSA ENGROSSEDN ThisACT billENTITLED hasAn beenAct extensivelyto amendedrevise (hoghoused)property andtax maylevies nofor longerschool bedistricts consistentand withto revise the originalstate intentionaid ofto thegeneral sponsor.and special education formulas.

IntroducedB by:E IT ENACTED BY THE L EGISLATURE OF THE S TATE OF S OUTH D AKOTA :

The Chair of the House Committee on Appropriations at the request of the Bureau of Finance and Management An Act to revise property tax levies for school districts and to revise the state aid to general and special education formulas.

B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH DAKOTA :

For taxes payable in 2026 2027, and each year thereafter, the maximum levy for the general fund of a school district is as follows:

(1) The maximum tax mill levy is five four dollars and twenty-one and one-tenth eighty-six and seven-tenths 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)(3); of this section;

(2) The maximum tax mill levy on agricultural property for the school district is one dollar and twelve and five-tenths five and one-tenth cents per thousand dollars of taxable valuation.valuation.;

Ifand the(3) district'sThe leviesmaximum aremill lesslevy thanfor thean maximumowner-occupied leviessingle-family asdwelling statedpursuant into this§ section,10-13-40 thefor levies must maintain the sameschool proportiondistrict tois eachzero otherdollars asand representedsixty-six inand thenine-tenths mathematicalcents relationshipper atthousand thedollars maximumof levies;taxable valuation.

and (3) The maximum tax mill levy for an owner-occupied single-family dwelling pursuant to § 10-13-40 for the school district is two zero dollars and fifty-one and eight- tenths sixty-six and nine-tenths cents per thousand dollars of taxable valuation.

OverstrikesIf indicatethe deleteddistrict language.has imposed an excess levy pursuant to § 10-12-43, the three mill levies must maintain the same proportion to each other as the maximum levies of this section for taxes payable in 2026.

26.537.19 2 1051 If the district has imposed an excess levy pursuant to § 10-12-43, the three mill levies must maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in of this section for taxes payable in 2026.

26.537.20 2 1051 13-13-10.1.

and Overstrikes(c) indicateFor deleteddistricts language.with a fall enrollment of six hundred or greater, the target teacher ratio factor is 15.

26.537.19 3 1051 (c) For districts with a fall enrollment of six hundred or greater, the target teacher ratio factor is 15.

(4) "English learner (EL) adjustment," is calculated by multiplying 0.25 times the number of kindergarten-through-twelfth-grade students who, in the prior school year, scored below level four on the state-administered language proficiency HB1051 ENROLLED 26.537.20 3 1051 assessment as required in the state's consolidated state application pursuant to § 1111(b)(2)(G) of the Every Student Succeeds Act of 2015;

(6) "Target teacher salary," for the school fiscal year beginning July 1, 2025 2026, is $62,821.19 $63,700.69.

(9) "Overhead rate," is thirty-eight and seventy-eight-hundredths eighty-hundredths percent.

Overstrikes(g) indicateWhen deletedcalculating language.local need at the statewide level, include the amounts set aside for costs related to technology in schools and statewide student assessments;

26.537.19(h) 4 1051 (g) When calculating local need at the statewide level, include the amounts set aside for costssparse relatedschool todistrict technologybenefits, incalculated schoolspursuant andto statewide§§ student13-13- assessments;and 13-13-79;

(h)and (i) When calculating local need at the statewide level, include the amounts set aside for sparsecareer schooland districttechnical benefits,education calculated pursuant to §§ 13-13- 78 and 13-13-79;13-13-82;

and (i) When calculating local need at the statewide level, include the amounts set aside for career and technical education calculated pursuant to §§ 13-13- 81 and 13-13-82;

HB1051 ENROLLED 26.537.20 4 1051 (a) Add the total need for each school district for school fiscal year 2016, including the small school adjustment and the English learner adjustment, to the lesser of the amount of funds apportioned to each school district in the year preceding the most recently completed school fiscal year or school fiscal year 2015 pursuant to §§ 10-33-24, 10-35-21, 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25;

However, for wind energy tax revenue apportioned to a school district from a wind farm producing power for the first time after June 30, 2016, one hundred percent must be retained by the Overstrikesschool indicatedistrict deletedto language.which the tax revenue is apportioned for the first five years of producing power, eighty percent for the sixth year, sixty percent for the seventh year, forty percent for the eighth year, twenty percent for the ninth year, and zero percent thereafter.

26.537.19 5 1051 school district to which the tax revenue is apportioned for the first five years of producing power, eighty percent for the sixth year, sixty percent for the seventh year, forty percent for the eighth year, twenty percent for the ninth year, and zero percent thereafter.

HB1051 ENROLLED 26.537.20 5 1051 (a) Multiply the target teacher compensation times the sum of one plus the overhead rate;

OverstrikesSection indicate3. deleted language.

26.537.19 6 1051 Section 3.

For taxes payable in 2026 2027, and each year thereafter, the school board shall levy no more than one dollar and forty-six and two-tenths forty-four and nine-nine-tenths tenths 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 HB1051 ENROLLED 26.537.20 6 1051 services who reside within the district pursuant to the provisions of §§ 13-37-8.4 to 13-37-8.10,13- 37-8.10, inclusive.

Any In 2028 and each year thereafter, any adjustments in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall 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.

Overstrikes(2) indicate"Level deletedtwo language.disability," cognitive disability or emotional disorder;

26.537.19 7 1051 (2) "Level two disability," cognitive disability or emotional disorder;

(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 HB1051 ENROLLED 26.537.20 7 1051 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 an amount calculated for taxes payable in 2026 2027 and thereafter using a special education levy of one dollar and twenty-six and two- tenths twenty-four and nine-tenths cents per one thousand dollars of valuation;

(8) "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 2025, is $7,650.45 2026, is $7,984.00.

(9) "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 2025, is $16,759.91 2026, is $16,180.00.

(10) "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 2025, is $23,139.68 2026, is $21,340.00.

(11) "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 2025, is $18,053.89 2026, is $18,281.00.

(12) "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 2025, is $37,039.28 2026, is $38,590.00.

(12A)"Allocation(12A) "Allocation for a student with a level six disability," for the school fiscal year beginning July 1, 2025, is $11,838.15 2026, is $12,378.00.