provide a property tax credit for the payment of nonpublic school tuition.

26.431.24 101st Legislative Session 1168

2026 South Dakota Legislature
House Bill 1168
HOUSE EDUCATION ENGROSSED

Introduced by: Representative Sjaarda

Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to provide a property tax credit for the payment of nonpublic school tuition. 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2
Section 1. That a NEW SECTION be added to chapter 10-13: 3
An owner of property that is subject to taxation pursuant to chapter 10-4 may 4
receive a property tax credit to be applied toward the taxes levied on the property by the 5
school district in which the property is located. The reduction is based on education 6
expenses the owner has incurred for any child who is: 7
(1) At least five years old, but younger than nineteen years; and 8
(2) A kindergarten-through-twelfth-grade student in this state enrolled in a nonpublic 9
school. 10
The child, for which education expenses are incurred, is not required to be a child 11
of the owner of the property for a tax credit to be received pursuant to this Act. 12
Section 2. That a NEW SECTION be added to chapter 10-13: 13
Only nonpublic school tuition qualifies as an eligible education expense for which a 14
property tax credit may be received pursuant to this Act. 15
Section 3. That a NEW SECTION be added to chapter 10-13: 16
The amount of the property tax credit received under this Act by any property 17
owner in any year may not exceed the lesser of: 18
(1) Eighty percent of the total amount of school district taxes owed to that school 19
district by the owner for that year; or 20
(2) One thousand dollars. 21
The amount of property tax credits received by an individual property owner or by 22
multiple property owners, pursuant to this Act, for incurred eligible education expenses, 23
26.431.24 2 1168
Underscores indicate new language.
Overstrikes indicate deleted language.
for any individual child in any year may not exceed the per student equivalent set forth in 1
§ 13-13-10.1. 2
Section 4. That a NEW SECTION be added to chapter 10-13: 3
To apply for a property tax credit pursuant to this Act, a property owner shall, prior 4
to June first, submit an application to the county director of equalization. 5
The application must be on a form prescribed by the Department of Revenue. The 6
application must: 7
(1) Include for each child on whose behalf eligible education expenses were incurred: 8
(a) The school enrollment information; and 9
(b) Verification of the tuition charges by each child's nonpublic school; and 10
(2) Be signed by the property owner, under penalty of perjury. 11
Section 5. That a NEW SECTION be added to chapter 10-13: 12
The property tax bill sent to each taxpayer pursuant to § 10-21-1.1 must reflect 13
any property tax credits received pursuant to this Act. 14
Section 6. That a NEW SECTION be added to chapter 10-13: 15
For purposes of determining local effort under chapters 13-13 and 13-37, a 16
property tax credit issued under this Act is deducted from the local effort in the district in 17
which the property is located. 18
Section 7. That a NEW SECTION be added to chapter 10-13: 19
The Department of Revenue shall promulgate rules, pursuant to chapter 1-26, to 20
specify the forms and procedures for filing and processing requests for property tax credits 21
under this Act and the documentation that is necessary to verify the eligible education 22
expenses. 23