ID S1302

Establishes a new Tax and Levy Reduction Fund that receives 8.33% of all sales and use tax revenue beginning July 1, 2022, distributed to school districts based on student average daily attendance, excluding virtual and charter schools without levy authority.

Caps school district budget stabilization levies and supplemental maintenance and operation levies at amounts in effect on January 1, 2022, reduced by amounts received from the Tax and Levy Reduction Fund, with no new levies authorized after that date.

School districts that fail to approve a budget stabilization or supplemental levy at two consecutive elections after January 1, 2022, lose all future authority to request such levies.

Requires school districts to apply Tax and Levy Reduction Fund moneys to reduce levies in priority order: first supplemental and indefinite term supplemental levies, then budget stabilization levies, then charter district supplemental levies.

Modifies sales tax distribution formula to allocate 8.33% of revenues to the new Tax and Levy Reduction Fund before other distributions are made, with remaining marketplace facilitator and out-of-state retailer taxes going to the Tax Relief Fund.