Education

This bill reduces property taxes for homeowners by lowering the mill levy rate on owner-occupied single-family homes from $5.21 to $20.51 per $1,000 of taxable value (with the exact figure clarified in the bill text). It simultaneously raises the state sales tax from 4.2% to 4.7% for 2026-2027 and to 5% after 2027, and expands the gross receipts tax to cover more services like dry cleaning, beauty shops, and rentals. The revenue from these tax increases is explicitly allocated to replace lost school district property tax revenue and fund pay raises for state and school employees. The bill ensures school districts maintain their total funding levels under the new system.

HB 1325 prohibits South Dakota's public universities (controlled by the Board of Regents) from requiring students to live in on-campus housing or buy meal plans after their first year of enrollment. This directly affects undergraduate students at institutions like the University of South Dakota and South Dakota State University. The bill removes mandatory requirements for housing and meal plans beyond a student's initial academic year. It does not change first-year housing or meal plan policies but gives returning students the choice to live off-campus or arrange their own meals. The law takes effect upon enactment.

HB 1131 amends how South Dakota school districts calculate their fall enrollment for state education funding. The bill specifically requires districts to exclude students residing in residential treatment facilities (when the facility operates the education program) from their enrollment count used in the funding formula. This change directly affects school districts serving students in such facilities, potentially altering their state funding amounts based on revised enrollment calculations. The amendment clarifies an existing definition within the state's education funding structure without changing other elements like teacher salary formulas or English learner adjustments.