Bill > SB99

This bill aims to reduce certain property taxes by establishing a "local effort replacement fund" and increasing rates for specific gross receipts taxes and use taxes. Specifically, it eliminates the maximum property tax levy for school district general funds starting in 2027, while simultaneously increasing the state's gross receipts tax and use tax rates from 4.2% to 6.2% on various goods, services, and rentals, including telecommunications, utilities, and amusement devices. A portion of the revenue generated from these increased taxes will be deposited into the newly created local effort replacement fund, which will then be used to supplement school district general and special education funds, thereby replacing some of the lost local property tax revenue. The bill also makes adjustments to how state aid to education is calculated and repeals certain provisions related to property tax levies and special education funding.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26582