SD SB99

Eliminates school district property tax levies for owner-occupied single-family dwellings and special education, reducing the maximum levy to zero dollars per thousand dollars of taxable valuation beginning with taxes payable in 2027

Increases the state sales and use tax rate from 4.2% to 6.2% on retail sales, services, telecommunications, amusement devices, farm machinery, and rental vehicles, effective July 1, 2027

Creates a new "local effort replacement fund" in the state treasury, funded by 32.3% of the increased sales/use tax revenue collected under chapters 10-45, 10-46, 10-46E, 10-58, and rental vehicle taxes

The Department of Education will administer the replacement fund to supplement property tax local effort for school district general funds and special education funds with state revenue

Repeals provisions that automatically adjusted school levy rates based on statewide local effort compared to local need, and includes a sunset clause repealing amendments on June 30, 2027 if tax rate increases are not enacted