South Dakota2026Active
HB1051
Changes to School Property Taxes and State Aid Formulas
Last scannedAug 25, 2026, 3:29 AM
In one sentence
This law sets new maximum property tax rates for school districts starting in 2027 and updates the rules used to calculate state funding based on student counts, teacher ratios, salaries, and other factors.
What it does
- Sets a maximum general fund property tax rate of $4.86 per thousand dollars of taxable value for schools starting with taxes payable in 2027.
- Limits the school district property tax rate to $1.05 on agricultural land and $0.67 on owner-occupied single-family homes.
- Defines how 'fall enrollment' is calculated by counting students enrolled on the last Friday of September while adjusting for tuition payments.
- Establishes a target teacher salary of $63,700.69 for the 2026 school year and sets benefits at twenty-nine percent of that salary.
- Creates formulas to calculate 'local need' based on student numbers, English learner adjustments, overhead costs, technology assessments, sparse district benefits, and career technical education.
Who it affects
- Public school districts in South Dakota
- Property owners with agricultural land or owner-occupied homes paying school taxes
- The Department of Education when calculating state aid
Limits and unknowns
- The law does not specify the exact effective date beyond stating it applies to taxes payable in 2027 and later.
- School districts may choose to tax at rates lower than the maximum amounts set by this bill, but must maintain specific proportions between different property types if they do so.
Plain language
Terms to know
- Mill levy
- A tax rate expressed as dollars per thousand dollars of property value.
- Fall enrollment
- The count of students in a district on the last Friday of September used to determine funding levels, adjusted for tuition payments and specific student groups.
- Target teacher ratio factor
- A number based on school size that determines how many teachers are needed for state aid calculations: 12 for small districts, a calculated amount for medium districts, and 15 for large districts.
Official record
Sources
Official summary
revise property tax levies for school districts and to revise the state aid to general and special education formulas.
Official activity
Bill history
- Signed by the Governor