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26.283.25 101st Legislative Session 99
2026 South Dakota Legislature
Senate Bill 99
Introduced by: Senator Mehlhaff
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An Act to create the property tax local effort replacement fund, to reduce certain 1
property taxes, and to increase the rates for certain gross receipts taxes and 2
use taxes. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4
Section 1. That § 10-12-42 be AMENDED: 5
10-12-42. For taxes payable in 2026 2027, and each year thereafter, the 6
maximum levy for the general fund of a school district is as follows: 7
(1) The maximum tax levy is five dollars and tw 8
enty-one and one-tenth cents per thousand dollars of taxable valuation, subject to 9
the limitations on agricultural property as provided in subdivision (2) of this section and 10
owner-occupied property as provided in subdivision (3) of this section; 11
(2) The maximum tax levy on agricultural property for the school district is one 12
dollar and twelve and five -tenths cents per thousand dollars of taxable valuation. If the 13
district's levies are less than the maximum levies as stated in this section, the levies must 14
maintain the same proportion to each other as represented in the mathematical 15
relationship at the maximum levies; and 16
(3) The maximum tax levy for an owner -occupied single-family dwelling pursuant 17
to § 10-13-40 for the school district is two dollars and fifty-one and eight-tenths cents per 18
thousand dollars of taxable valuation. If the district's levies are less than the maximum 19
levies as stated in this section, the levies must maintain the same proportion to each other 20
as represented in the mathematical relationship at the maximum levies zero dollars and 21
zero cents per thousand dollars of taxable valuation. 22
All levies in this section must be imposed on valuations where the median level of 23
assessment represents eighty -five percent of market value as determined by the 24
Department of Revenue. These valuations must be used for all school funding purposes. 25
If the district has imposed an excess levy pursuant to § 10-12-43, the levies must 26
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maintain the same proportion to each other as represented in the mathematical 1
relationship at the maximum levies in this section. The school district may elect to tax at 2
less than the maximum amounts set forth in this section imposed pursuant to this section 3
for taxes payable in 2026. 4
Section 2. That § 10-45-2 be AMENDED: 5
10-45-2. There is hereby imposed a tax upon the privilege of engaging in business 6
as a retailer, a tax of four and two-tenths at the rate of six and two-tenths percent upon 7
the gross receipts of all sales of tangible personal property consisting of goods, wares, or 8
merchandise, except as otherwise provided in this chapter, sold at retail in the state to 9
consumers or users. 10
Section 3. That § 10-45-5 be AMENDED: 11
10-45-5. There is imposed a tax , at the rate of four and two -tenths percent set 12
forth in § 10-45-2, upon the gross receipts of any person from engaging or continuing in 13
any of the following businesses or services in this state: abstracters 14
(1) Abstracters; 15
(2) accountantsAccountants; 16
(3) ancillaryAncillary services; 17
(4) architectsArchitects; 18
(5) barbersBarbers; 19
(6) beautyBeauty shops; 20
(7) billBill collection services; 21
(8) blacksmithBlacksmith shops; 22
(9) carCar washing; 23
(10) dryDry cleaning; 24
(11) dyeingDyeing; 25
(12) exterminatorsExterminators; 26
(13) garageGarage and service stations; 27
(14) garmentGarment alteration; 28
(15) cleaningCleaning and pressing; 29
(16) janitorialJanitorial services and supplies; 30
(17) specialtySpecialty cleaners; 31
(18) laundryLaundry; 32
(19) linenLinen and towel supply; 33
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(20) membershipMembership or entrance fees for the use of a facility or for the 1
right to purchase tangible personal property, any product transferred electronically, or 2
services; 3
(21) photographyPhotography; 4
(22) photoPhoto developing and enlarging; 5
(23) tireTire recapping; 6
(24) weldingWelding and all repair services, except repair services for farm 7
machinery, attachment units, and irrigation equipment used exclusively for agricultural 8
purposes; 9
(25) cableCable television; and 10
(26) rentalsRentals of tangible personal property , except leases of tangible 11
personal property between one telephone company and another telephone company, 12
motor vehicles as defined pursuant to § 32-5-1 leased under a single contract for more 13
than twenty-eight days, and mobile homes. However, the 14
The specific enumeration of businesses and professions made in this section does 15
not, in any way, limit the scope and effect of the provisions of § 10-45-4. 16
Section 4. That § 10-45-5.3 be AMENDED: 17
10-45-5.3. There is imposed, at the rate of four and two-tenths percent set forth 18
in § 10-45-2, an excise tax on the gross receipts of any person engaging in oil and gas 19
field services (, group no. 138), as enumerated in the Standard Industrial Classification 20
Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management 21
and Budget, Office of the President. 22
Section 5. That § 10-45-6 be AMENDED: 23
10-45-6. There is hereby imposed a tax of four and two -tenths percent, at the 24
rate set forth in § 10-45-2, upon the gross receipts from sales, furnishing, or service of 25
gas, electricity, and water, including the gross receipts from such the sales by any 26
municipal corporation furnishing gas , and electricity , to the public in its proprietary 27
capacity, except as otherwise provided in this chapter, when sold at retail in the State of 28
South Dakota this state to consumers or users. 29
Section 6. That § 10-45-6.1 be AMENDED: 30
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10-45-6.1. Except as provided in § 10-45-6.2, there is hereby imposed a tax of 1
four and two-tenths percent, at the rate set forth in § 10-45-2, upon the gross receipts 2
from providing any intrastate, interstate, or international telecommunications service that 3
originates or terminates in this state and that is billed or charged to a service address in 4
this state, or that both originates and terminates in this state. However, the tax imposed 5
by this section does not apply to: 6
(1) Any eight hundred or eight hundred-type service, unless the service both originates 7
and terminates in this state; 8
(2) Any sale of a telecommunication service to a provider of telecommunication 9
services, including access service, for use in providing any telecommunication 10
service; or 11
(3) Any sale of interstate telecommunication service provided to a call center that has 12
been certified by the secretary of revenue to meet the criterion established in § 10-13
45-6.3 and the call center has provided to the telecommunications service provider 14
an exemption certificate issued by the secretary indicating that it meets the 15
criterion. 16
If a call center uses an exemption certificate to purchase services not meeting the 17
criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, 18
and interest. 19
Section 7. That § 10-45-6.2 be AMENDED: 20
10-45-6.2. There is hereby imposed a tax of four and two-tenths percent, at the 21
rate set forth in § 10-45-2, upon the gross receipts of mobile telecommunications services, 22
as defined in 4 U.S.C. § 124(7) as of (January 1, 2002), that originate and terminate in 23
the same state and are billed to a customer with a place of primary use in this state or 24
are deemed to have originated or been received in this state and to be billed or charged 25
to a service address in this state if the customer's place of primary use is located in this 26
state regardless of where the service actually originates or terminates. Notwithstanding 27
any other provision of this chapter and for purposes of the tax imposed by this section, 28
the tax imposed upon mobile telecommunication services must be administered in 29
accordance with 4 U.S.C. §§ 116- to 126, as in effect on, inclusive, (July 28, 2000). 30
Section 8. That § 10-45-8 be AMENDED: 31
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10-45-8. Except as otherwise provided in this chapter, there is imposed a tax of 1
four and two-tenths percent, at the rate set forth in § 10-45-2, upon the gross receipts 2
from all sales of tickets or admissions to: 3
(1) Places of amusement; 4
(2) Athletic contests; or 5
(3) Events. 6
Section 9. That § 10-45-71 be AMENDED: 7
10-45-71. There is imposed a tax of four and two-tenths percent on, at the rate 8
set forth in § 10-45-2, upon the gross receipts from the transportation of passengers. The 9
tax imposed by this section applies to any transportation of passengers if the passenger 10
boards and exits the mode of transportation within this state. 11
Section 10. That § 10-46-2.1 be AMENDED: 12
10-46-2.1. For the privilege of using services in South Dakota this state, except 13
those types of services exempted by § 10-46-17.3, there is imposed on the person using 14
the service an excise tax equal to four and two -tenths, at the rate of six and two -tenths 15
percent of the value of the services at the time they are rendered. However, this This tax 16
may not be imposed on any service: 17
(1) Service rendered by a related corporation , as defined in subdivision 10-43-1(11), 18
for use by a financial institution, as defined in subdivision 10-43-1(4); or on any 19
service § 10-43-1; or 20
(2) Service rendered by a financial institution, as defined in subdivision 10-43-1(4) 21
§ 10-43-1, for use by a related corporation as defined in subdivision 10-43-1(11). 22
For the purposes of this section, the term, "related corporation," includes a means 23
a corporation associated with another as its parent or subsidiary, or in a brother -sister 24
relationship. The term includes a corporation, which together with the financial institution, 25
is part of a controlled group of corporations, as defined in 26 U.S.C. § 1563 as in effect 26
on (January 1, 1989), except that the eighty percent ownership requirements set forth in 27
26 U.S.C. § 563(a)(2)(A) § 1563(a) for a brother-sister controlled group are reduced to 28
fifty-one percent. 29
For the purpose of this chapter, services rendered by an employee for the use of 30
the employer are not taxable. 31
Section 11. That § 10-46-2.2 be AMENDED: 32
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10-46-2.2. An excise tax is imposed upon the privilege of the use of rented 1
tangible personal property and any product transferred electronically in this state , at the 2
rate of four and two -tenths percent of set forth in § 10-46-2.1, on the rental payments 3
upon the property. 4
Section 12. That § 10-46-48 be AMENDED: 5
10-46-48. All revenue arising under the operation of Except as otherwise 6
provided, revenue collected pursuant to this chapter shall immediately must be turned 7
over to the state treasurer and by him credited to deposited in the general fund. 8
The treasurer shall deposit in the local effort replacement fund, established in 9
section 25 of this Act, thirty -two and three-tenths percent of the taxes collected by the 10
secretary of the Department of Revenue pursuant to this chapter. 11
Section 13. That § 10-46-58 be AMENDED: 12
10-46-58. There is imposed a tax of four and two-tenths percent on, at the rate 13
set forth in § 10-46-2.1, upon the privilege of the use of any transportation of passengers. 14
The tax imposed by this section applies to any transportation of passengers if the 15
passenger boards and exits the mode of transportation within this state. 16
Section 14. That § 10-46-69 be AMENDED: 17
10-46-69. There is hereby imposed a tax of four and two-tenths percent, at the 18
rate set forth in § 10-46-2.1, upon the privilege of the use of mobile telecommunications 19
services, as defined in 4 U.S.C. § 124(7) as of (January 1, 2002 ), that originate and 20
terminate in the same state and are billed to a customer with a place of primary use in 21
this state. Notwithstanding any other provision of this chapter and for purposes of the tax 22
imposed by this section, the tax imposed upon mobile telecommunication services must 23
be administered in accordance with 4 U.S.C. §§ 116-126, as in effect on (July 28, 2000). 24
Section 15. That § 10-46-69.1 be AMENDED: 25
10-46-69.1. Except as provided in § 10-46-69, there is hereby imposed a tax of 26
four and two-tenths percent, at the rate set forth in § 10-46-2.1, upon the privilege of the 27
use of any intrastate, interstate, or international telecommunications service that 28
originates or terminates in this state and that is billed or charged to a service address in 29
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this state, or that both originates and terminates in this state. However, the The tax 1
imposed by this section does not apply to: 2
(1) Any eight hundred or eight hundred type service unless the service both originates 3
and terminates in this state; 4
(2) Any sale of a telecommunication service to a provider of telecommunication 5
services, including access service, for use in providing any telecommunication 6
service; or 7
(3) Any sale of interstate telecommunication service provided to a call center that has 8
been certified by the secretary of revenue to meet the criterion established in § 10-9
45-6.3 and the call center has provided to the telecommunications service provider 10
an exemption certificate issued by the secretary indicating that it meets the 11
criterion. 12
If a call center uses an exemption certificate to purchase services not meeting the 13
criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, 14
and interest. 15
Section 16. That § 10-46-69.2 be AMENDED: 16
10-46-69.2. There is hereby imposed a tax of four and two-tenths percent, at the 17
rate set forth in § 10-46-2.1, upon the privilege of the use of any ancillary services. 18
Section 17. That § 10-46E-1 be AMENDED: 19
10-46E-1. There is hereby imposed an excise tax of four and two-tenths percent, 20
at the rate of six and two -tenths percent, on the gross receipts from the sale, resale, or 21
lease of farm machinery, attachment units, and irrigation equipment used exclusively for 22
agricultural purposes. However, if If any trade-in or exchange of used farm machinery, 23
attachment units, and irrigation equipment is involved in the transaction, the excise tax 24
is only due and may only be collected on the cash difference. 25
Section 18. That § 10-46E-9 be AMENDED: 26
10-46E-9. The Except as otherwise provided, revenue from the tax imposed by 27
this chapter shall must be deposited in the general fund. 28
The treasurer shall deposit in the local effort replacement fund, established in 29
section 25 of this Act, thirty -two and three-tenths percent of the taxes collected by the 30
secretary of the Department of Revenue pursuant to this chapter. 31
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Section 19. That § 10-58-1 be AMENDED: 1
10-58-1. There is imposed upon owners and operators a special amusement 2
excise tax of four and two -tenths six and two-tenths percent of the gross receipts from 3
the sale or the operation of any mechanical or electronic amusement device. The tax 4
imposed by this section is in lieu of the tax imposed pursuant to chapter 10-45. 5
Section 20. That § 10-58-5 be AMENDED: 6
10-58-5. The Except as otherwise provided, the tax generated by this chapter 7
must be deposited in the general fund. 8
The treasurer shall deposit in the local effort replacement fund, established in 9
section 25 of this Act, thirty -two and three-tenths percent of the taxes collected by the 10
secretary of the Department of Revenue pursuant to this chapter. 11
Section 21. That § 13-13-72 be AMENDED: 12
13-13-72. It is the policy of the Legislature that the appropriation for state aid to 13
education increase on an annual basis increases annually by the percentage increase in 14
local need on an aggregate statewide basis so that the relative proportion of local need 15
paid by local effort and state aid shall remain constant. For school fiscal years 2017 to 16
2022, inclusive, the proportion of local need paid by local effort and state aid shall be 17
adjusted annually to maintain the proportion between state aid and local property taxes 18
and to reflect adjustments in local effort due to the implementation of the other revenue 19
base amount as defined in § 13-13-10.1. 20
Section 22. That § 13-13-72.1 be AMENDED: 21
13-13-72.1. Any adjustments in the levies specified in § 10-12-42 made pursuant 22
to §§ 13-13-71 and § 13-13-72 shall must be based on maintaining the relationship 23
between statewide local effort as a percentage of statewide local need in the fiscal year 24
succeeding the fiscal year in which the adjustment is made. For school fiscal years 2017 25
to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be 26
adjusted annually to reflect adjustments in local effort due to the implementation of the 27
other revenue base amount as defined in § 13-13-10.1. However, if If the levies specified 28
in § 10-12-42 are not adjusted to maintain this relationship, the target teacher salary as 29
defined in § 13-13-10.1 shall must be reduced to maintain the relationship between 30
statewide local effort as a percentage of statewide local need. 31
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Section 23. That § 13-13-78 be AMENDED: 1
13-13-78. Terms used in § 13-13-79 mean: 2
(1) "Sparse school district," a school district that meets each of the following criteria: 3
(a) Has a fall enrollment per square mile of 0.50 or less; 4
(b) Has a fall enrollment of five hundred or less; 5
(c) Has an area of four hundred square miles or more; 6
(d) Has at least fifteen miles between its secondary attendance center or 7
centers and that of an adjoining district; and 8
(e) Operates a secondary attendance center; and 9
(f) Levies ad valorem taxes at the maximum rates allowed pursuant to § 10-10
12-42 or more; 11
(2) "Sparsity fall enrollment," for sparse school districts with a fall enrollment as 12
defined in § 13-13-10.1 of less than eighty -three or greater than two hundred 13
thirty-two, and is calculated as follows: 14
(a) Divide the fall enrollment as defined in § 13-13-10.1 by the area of the 15
school district in square miles; 16
(b) Multiply the quotient obtained in subsection (a) times negative 0.125; 17
(c) Add 0.0625 to the product obtained in subsection (b); and 18
(d) Multiply the sum obtained in subsection (c) times the fall enrollment; 19
(3) "Sparsity adjusted fall enrollment," for sparse school districts with a fall enrollment 20
as defined in § 13-13-10.1 of at least eighty-three, but no more than two hundred 21
thirty-two, subtract the fall enrollment from two hundred thirty-two. 22
Section 24. That § 13-13-92 be AMENDED: 23
13-13-92. The state general fund savings obtained through the state aid to 24
education formula from the difference between the school general fund levy for agriculture 25
property for taxes payable in 2018 pursuant to §§ 13-13-71, 13-13-72, and 13-13-72.1, 26
and the agriculture property levy adopted by legislative action for taxes payable in 2018, 27
are in place until July 1, 2040. 28
Section 25. That a NEW SECTION be added to chapter 13-13: 29
There is created in the state treasury the local effort replacement fund. The 30
treasurer shall deposit in the fund thirty -two and three -tenths percent of the taxes 31
collected pursuant to: 32
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(1) Chapter 10-45; 1
(2) Chapter 10-46; 2
(3) Chapter 10-46E; 3
(4) Chapter 10-58; and 4
(5) § 32-5B-20. 5
The Department of Education shall administer the fund. The purpose of the fund is 6
to supplement property tax local effort for school district general funds and special 7
education funds with state revenue. Interest on moneys credited to the fund must remain 8
in the fund. Expenditures from the fund must be budgeted through the general 9
appropriation bill. 10
Section 26. That § 13-37-16 be AMENDED: 11
13-37-16. For taxes payable in 2026 2027, and each year thereafter, the school 12
board shall may levy no more than one dollar and forty -six and two -tenths zero dollars 13
and zero cents per thousand dollars of taxable valuation, as a special levy in addition to 14
all other levies authorized by law for the amount so determined to be necessary, and the 15
levy must be spread against all of the taxable property of the district. The proceeds derived 16
from the levy constitute a school district special education fund of the district for the 17
payment of costs for the special education of all children in need of special education or 18
special education and related services who reside within the district pursuant to the 19
provisions of §§ 13-37-8.4 to 13-37-8.10, inclusive. The levy in this section is based on 20
valuations where the median level of assessment represents eighty-five percent of market 21
value as determined by the Department of Revenue. The total amount of taxes that would 22
be generated at the levy pursuant to this section is considered local effort. Money in the 23
special education fund may be expended for the purchase or lease of any assistive 24
technology that is directly related to special education and specified in a student's 25
individualized education plan. This section does not apply to real property improvements. 26
Section 27. That § 13-37-35.1 be AMENDED: 27
13-37-35.1. Terms used in chapter 13-37 mean: 28
(1) "Level one disability," a mild disability; 29
(2) "Level two disability," cognitive disability or emotional disorder; 30
(3) "Level three disability," hearing impairment, deafness, visual impairment, deaf -31
blindness, orthopedic impairment, or traumatic brain injury; 32
(4) "Level four disability," autism; 33
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(5) "Level five disability," multiple disabilities; 1
(5A) "Level six disability," prolonged assistance; 2
(6) "Index factor," is the annual percentage change in the consumer price index for 3
urban wage earners and clerical workers as computed by the Bureau of Labor 4
Statistics of the United States Department of Labor for the year before the year 5
immediately preceding the year of adjustment, or three percent, whichever is less; 6
(7) "Local effort," must be an amount calculated for taxes payable in 2026 2027 and 7
thereafter using a the maximum special education levy of one dollar and twenty -8
six and two-tenths cents per one thousand dollars of valuation set forth in § 13-9
37-16; 10
(8) "Allocation for a student with a level one disability," for the school fiscal year 11
beginning July 1, 2025, is $7,650.45. For each school year thereafter, the allocation 12
for a student with a level one disability must be the previous fiscal year's allocation 13
for the child increased by the index factor; 14
(9) "Allocation for a student with a level two disability," for the school fiscal year 15
beginning July 1, 2025, is $16,759.91. For each school year thereafter, the 16
allocation for a student with a level two disability must be the previous fiscal year's 17
allocation for the child increased by the index factor; 18
(10) "Allocation for a student with a level three disability," for the school fiscal year 19
beginning July 1, 2025, is $23,139.68. For each school year thereafter, the 20
allocation for a student with a level three disability must be the previous fiscal 21
year's allocation for the child increased by the index factor; 22
(11) "Allocation for a student with a level four disability," for the school fiscal year 23
beginning July 1, 2025, is $18,053.89. For each school year thereafter, the 24
allocation for a student with a level four disability must be the previous fiscal year's 25
allocation for the child increased by the index factor; 26
(12) "Allocation for a student with a level five disability," for the school fiscal year 27
beginning July 1, 2025, is $37,039.28. For each school year thereafter, the 28
allocation for a student with a level five disability must be the previous fiscal year's 29
allocation for the child increased by the index factor; 30
(12A) "Allocation for a student with a level six disability," for the school fiscal year 31
beginning July 1, 2025, is $11,838.15. For each school year thereafter, the 32
allocation for a student with a level six disability must be the previous fiscal year's 33
allocation for the child increased by the index factor; 34
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(13) "Child count," is the number of students in need of special education or special 1
education and related services according to criteria set forth in rules promulgated 2
pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education; 3
(14) "Fall enrollment," the number of kindergarten -through-twelfth-grade students 4
enrolled in all schools operated by the school district on the last Friday of 5
September of the previous school year minus the number of students for whom 6
the district receives tuition, except any nonresident student who is in the care and 7
custody of a state agency and is attending a public school and any student for 8
whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students 9
for whom the district pays tuition; 10
(15) "Nonpublic school," a sectarian organization or entity accredited by the secretary of 11
education for the purpose of instructing children of compulsory school age. This 12
definition excludes any school that receives a majority of its revenues from public 13
funds; 14
(16) "Nonpublic fall enrollment," the number of children under age eighteen, who are 15
approved for alternative instruction pursuant to § 13-27-3 on the last Friday of 16
September of the previous school year plus: 17
(a) For nonpublic schools located within the boundaries of a public school 18
district with a fall enrollment of six hundred or more on the last Friday of 19
September of the previous school year, the number of kindergarten -20
through-twelfth-grade students enrolled on the last Friday of September of 21
the previous regular school year in all nonpublic schools located within the 22
boundaries of the public school district; 23
(b) For nonpublic schools located within the boundaries of a public school 24
district with a fall enrollment of less than six hundred on the last Friday of 25
September of the previous school year, the number of resident 26
kindergarten-through-twelfth-grade students enrolled on the last Friday of 27
September of the previous school year in all nonpublic schools located 28
within this state; 29
(17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment; 30
(18) "Local need," an amount to be determined as follows: 31
(a) Multiply the special education fall enrollment by 0.1062 and multiply the 32
result by the allocation for a student with a level one disability; 33
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(b) Multiply the number of students having a level two disability as reported on 1
the child count for the previous school fiscal year by the allocation for a 2
student with a level two disability; 3
(c) Multiply the number of students having a level three disability as reported 4
on the child count for the previous school fiscal year by the allocation for a 5
student with a level three disability; 6
(d) Multiply the number of students having a level four disability as reported on 7
the child count for the previous school fiscal year by the allocation for a 8
student with a level four disability; 9
(e) Multiply the number of students having a level five disability as reported on 10
the child count for the previous school fiscal year by the allocation for a 11
student with a level five disability; 12
(f) Multiply the number of students having a level six disability as reported on 13
the child count for the previous school fiscal year by the allocation for a 14
student with a level six disability; 15
(g) When calculating local need at the statewide level, include the amount set 16
aside for extraordinary expenses defined in § 13-37-40; 17
(h) When calculating local need at the statewide level, include the amount set 18
aside for the South Dakota School for the Blind and Visually Impaired; and 19
(i) Sum the results of subdivisions (18)(a) to (h), inclusive; and 20
(19) "Effort factor," the school district's special education tax levy in dollars per thousand 21
divided by $1.262. The maximum effort factor is 1.0 zero and zero-tenths. 22
Section 28. That § 32-5B-20 be AMENDED: 23
32-5B-20. There is hereby imposed a tax of four and two -tenths, at the rate of 24
six and two-tenths percent, upon the gross receipts of any person renting a rental vehicle 25
as defined in § 32-5B-19. This tax applies to all vehicles registered in accordance with 26
§ 32-5-6, 32-5-8.1, or 32-5-9. Any rental vehicle not licensed in accordance with § 32-5-27
6, 32-5-8.1, or 32-5-9 is subject to the motor vehicle excise tax in § 32-5B-1. 28
The tax imposed by this section is in addition to any tax levied pursuant to chapter 29
10-45 or 10-46 upon the rental of a rental vehicle. The provisions of chapter 10-45 apply 30
to the administration and enforcement of the tax imposed by this section. The tax imposed 31
by this section is in lieu of the tax levied by § 32-5B-1 on the sales of such motor vehicles. 32
A violation of this section is a Class 1 misdemeanor. 33
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Section 29. That § 32-5B-25 be AMENDED: 1
32-5B-25. All Except as otherwise provided, all excise taxes collected on the 2
purchase of an off-road vehicle as provided by § 32-5B-1 shall must be deposited in the 3
state general fund. 4
The treasurer shall deposit in the local effort replacement fund, established in 5
section 25 of this Act, thirty -two and three-tenths percent of the taxes collected by the 6
secretary of the Department of Revenue pursuant to § 32-5B-20. 7
Section 30. That § 13-13-71 be REPEALED. 8
If local effort increases on a statewide aggregate basis by a greater percentage 9
than local need on a statewide aggregate basis from any one year to the next, for the 10
following year each of the levies specified in subdivision 13-13-10.1(13) shall be reduced 11
proportionally so that the percentage increase in local effort on a statewide aggregate 12
basis equals the percentage increase in need on a statewide aggregate basis. 13
Section 31. That § 13-37-16.2 be REPEALED. 14
If local effort increases on a statewide aggregate basis by a greater percentage 15
than local need on a statewide aggregate basis from any one year to the next, for the 16
following year, the levy specified in subdivision 13-37-35.1(7) shall be reduced 17
proportionally so that the percentage increase in local effort on a statewide aggregate 18
basis equals the percentage increase in need on a statewide aggregate basis. 19
Section 32. That § 13-37-16.3 be REPEALED. 20
Any adjustments in the levy specified in subdivision 13-37-35.1(7) made pursuant 21
to § 13-37-16.2 shall be based on maintaining the relationship between statewide local 22
effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year 23
in which the adjustment is made. However, for fiscal year 2014, and each year thereafter, 24
if the levy specified in subdivision 13-37-35.1(7) is not adjusted to maintain this 25
relationship, the funding allocation for each disability level as defined in § 13-37-35.1 shall 26
be reduced proportionally to maintain the relationship between statewide local effort as a 27
percentage of statewide local need. 28
Section 33. That 2023 Session Laws, chapter 32, § 19 be REPEALED: 29
26.283.25 15 99
Underscores indicate new language.
Overstrikes indicate deleted language.
Section 34. The amendments to the Code sections in sections 1 to 17, inclusive, 1
of this Act are repealed on June 30, 2027, and those Code sections will revert in word and 2
substance to that which existed immediately prior to the effective date of this Act. 3
Section 35. Sections 2 to 20, inclusive, and sections 25, 28, and 29 of this Act are effective 4
beginning July 1, 2027. 5