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SD HB1308
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Tim Czmowski
Click for details
AI Summary
- Eliminates school district property tax levies (both general fund and special education) on owner-occupied single-family dwellings by setting the mill levy to zero dollars and zero cents per thousand dollars of taxable valuation, effective for taxes payable in 2027 and thereafter
- Increases the state gross receipts (sales) tax, use tax, farm machinery excise tax, amusement device tax, and rental vehicle tax from 4.2% to 4.7% beginning July 1, 2026, and to 5.0% beginning July 1, 2027, in a phased two-step increase
- Directs that revenue from the tax rate increases be used to provide state aid replacing the forgone property tax revenue from owner-occupied dwellings, and to fund ongoing payroll and rate increases for state employees, school employees, and Medicaid providers
- Specifies that the zero mill levy on owner-occupied dwellings must not affect maximum mill levies on other property classifications (agricultural and nonagricultural) or reduce total school district funding through general fund and special education formulas
- Requires that beginning in 2028 and each year thereafter, state aid to education must increase annually by the percentage increase in local need on a statewide aggregate basis, maintaining a constant proportion between local effort and state aid
Legislative Description
Reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.
State Aid to Education
Last Action
House of Representatives Do Pass, Failed, YEAS 24, NAYS 42. H.J. 424
2/24/2026
Committee Referrals
Taxation2/5/2026
Full Bill Text
No bill text available