AN ACT
ENTITLED, An Act to
revise certain tax levy limitations and property tax levies for school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 13-13-72.1 be amended to read as follows:
13-13-72.1. Any adjustments in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the adjustment is made. In addition to the adjustments in the levies provided by this section, the levies shall also be annually adjusted as necessary to reduce the portion of local need paid by local effort by an amount equal to nine million dollars from those funds transferred into the property tax reduction fund pursuant to § 10-50-52 subsequent to July 1, 2007. In addition to the adjustments in the levies provided by this section, the levies for nonagricultural property and owner-occupied single-family dwellings shall also be adjusted as necessary to account for the additional increase in the total assessed value for nonagricultural property and owner-occupied single-family dwellings pursuant to the phasing out and repeal of the provisions provided in § 10-6-74.
Section 2. That § 13-10-6 be amended to read as follows:
13-10-6. For the purpose of continuing a fund for the payment of pensions to retired employees of a school district that has established such system, the school district may levy an annual tax not exceeding thirty cents per thousand dollars of taxable valuation of the school district for the current year. The levy may not be included in determining the tax levy limitation of the school district provided by law. Moneys collected from the tax shall be kept by the business manager in a special pension fund and may not be used for any other purpose except upon discontinuance of the pension system by the school district, in which case any unexpended balance shall be transferred to the general fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 13-13-72.1 be amended to read as follows:
13-13-72.1. Any adjustments in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the adjustment is made. In addition to the adjustments in the levies provided by this section, the levies shall also be annually adjusted as necessary to reduce the portion of local need paid by local effort by an amount equal to nine million dollars from those funds transferred into the property tax reduction fund pursuant to § 10-50-52 subsequent to July 1, 2007. In addition to the adjustments in the levies provided by this section, the levies for nonagricultural property and owner-occupied single-family dwellings shall also be adjusted as necessary to account for the additional increase in the total assessed value for nonagricultural property and owner-occupied single-family dwellings pursuant to the phasing out and repeal of the provisions provided in § 10-6-74.
Section 2. That § 13-10-6 be amended to read as follows:
13-10-6. For the purpose of continuing a fund for the payment of pensions to retired employees of a school district that has established such system, the school district may levy an annual tax not exceeding thirty cents per thousand dollars of taxable valuation of the school district for the current year. The levy may not be included in determining the tax levy limitation of the school district provided by law. Moneys collected from the tax shall be kept by the business manager in a special pension fund and may not be used for any other purpose except upon discontinuance of the pension system by the school district, in which case any unexpended balance shall be transferred to the general fund.
For taxes payable in 2011, the total amount of revenue payable from the levy provided in this
section may not increase more than the lesser of three percent or the index factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been generated for the taxes
payable in 2010. After applying the index factor, a school district may increase the revenue payable
from taxes on real property above the limitations provided by this section by the percentage increase
of value resulting from any improvements or change in use of real property, annexation, minor
boundary changes, and any adjustments in taxation of real property separately classified and subject
to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed the same as property of equal value.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of revenue payable from the
levy provided in this section may not increase more than the lesser of three percent or the index
factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been
generated for the taxes payable in 2010 plus any unused index factor from the previous years. After
applying the index factor, a school district may increase the revenue payable from taxes on real
property above the limitations provided by this section by the percentage increase of value resulting
from any improvements or change in use of real property, annexation, minor boundary changes, and
any adjustments in taxation of real property separately classified and subject to statutory adjustments
and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed
the same as property of equal value.
Any school district created or reorganized after January 1, 2009, is exempt from the limitation
provided by this section for a period of two years immediately following its creation.
For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of thirty cents per
thousand dollars of taxable valuation does not apply to any school district.
Section 3. That § 13-16-7 be amended to read as follows:
13-16-7. The school board of any school district of this state may at its discretion authorize an annual levy of a tax not to exceed three dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for its obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to such levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13- 16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.
Section 3. That § 13-16-7 be amended to read as follows:
13-16-7. The school board of any school district of this state may at its discretion authorize an annual levy of a tax not to exceed three dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for its obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to such levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13- 16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.
For taxes payable in 2011, the total amount of revenue payable from the levy provided in this
section may not increase more than the lesser of three percent or the index factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been generated for the taxes
payable in 2010. After applying the index factor, a school district may increase the revenue payable
from taxes on real property above the limitations provided by this section by the percentage increase
of value resulting from any improvements or change in use of real property, annexation, minor
boundary changes, and any adjustments in taxation of real property separately classified and subject
to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed the same as property of equal value. A school district may increase the
revenue it receives from taxes on real property above the limit provided by this section for taxes
levied to pay the principal, interest, and redemption charges on any bonds issued after January 1,
2009, which are subject to referendum; for scheduled payment increases on bonds, and for a levy
directed by the order of a court for the purpose of paying a judgment against the school district. Any
school district created or reorganized after January 1, 2009, is exempt from the limitation provided
by this section for a period of two years immediately following its creation.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of revenue payable from the
levy provided in this section may not increase more than the lesser of three percent or the index
factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been
generated for the taxes payable in 2010 plus any unused index factor from the previous years. After
applying the index factor, a school district may increase the revenue payable from taxes on real
property above the limitations provided by this section by the percentage increase of value resulting
from any improvements or change in use of real property, annexation, minor boundary changes, and
any adjustments in taxation of real property separately classified and subject to statutory adjustments
and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed
the same as property of equal value. A school district may increase the revenue it receives from taxes
on real property above the limit provided by this section for taxes levied to pay the principal, interest,
and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum,
scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose
of paying a judgment against such school district. Any school district created or reorganized after
January 1, 2009, is exempt from the limitation provided by this section for a period of two years
immediately following its creation.
For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of three dollars per
thousand dollars of taxable valuation does not apply to any school district.
Section 4. That § 13-37-16 be amended to read as follows:
13-37-16. For taxes payable in 1997, and each year thereafter, the school board shall levy no
Section 4. That § 13-37-16 be amended to read as follows:
13-37-16. For taxes payable in 1997, and each year thereafter, the school board shall levy no
more than one dollar and forty cents per thousand dollars of taxable valuation, as a special levy in
addition to all other levies authorized by law for the amount so determined to be necessary, and such
levy shall be spread against all of the taxable property of the district. The proceeds derived from such
levy shall constitute a school district special education fund of the district for the payment of costs
for the special education of all children in need of special education or special education and related
services who reside within the district pursuant to the provisions of §§ 13-37-8.2 to 13-37-8.10,
inclusive. The levy in this section shall be based on valuations such that the median level of
assessment represents 85% of market value as determined by the Department of Revenue and
Regulation. The total amount of taxes that would be generated at the levy pursuant to this section
shall be considered local effort. Money in the special education fund may be expended for the
purchase or lease of any assistive technology that is directly related to special education and specified
in a student's individualized education plan. This section does not apply to real property
improvements.
For taxes payable in 2011, the total amount of revenue payable from the levy provided in this
section may not increase more than the lesser of three percent or the index factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been generated for the taxes
payable in 2010. After applying the index factor, a school district may increase the revenue payable
from taxes on real property above the limitations provided by this section by the percentage increase
of value resulting from any improvements or change in use of real property, annexation, minor
boundary changes, and any adjustments in taxation of real property separately classified and subject
to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed the same as property of equal value.
Any school district created or reorganized after January 1, 2009, is exempt from the limitation
provided by this section for a period of two years immediately following its creation.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of revenue payable from the
levy provided in this section may not increase more than the lesser of three percent or the index
factor, as defined in
§
10-13-38, over the maximum amount of revenue that could have been
generated for the taxes payable in 2010 plus any unused index factor from the previous years. After
applying the index factor, a school district may increase the revenue payable from taxes on real
property above the limitations provided by this section by the percentage increase of value resulting
from any improvements or change in use of real property, annexation, minor boundary changes, and
any adjustments in taxation of real property separately classified and subject to statutory adjustments
and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed
the same as property of equal value.
For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of one dollar and forty
cents per thousand dollars of taxable valuation does not apply to any school district.
Section 5. That § 13-37-35.1 be amended to read as follows:
13-37-35.1. Terms used in chapter 13-37 mean:
Section 5. That § 13-37-35.1 be amended to read as follows:
13-37-35.1. Terms used in chapter 13-37 mean:
(1)
"Level one disability," a mild disability;
(2)
"Level two disability," a mental retardation or emotional disorder;
(3)
"Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness,
orthopedic impairment, or traumatic brain injury;
(4)
"Level four disability," autism;
(5)
"Level five disability," multiple disabilities;
(5A)
"Level six disability," prolonged assistance;
(6)
"Index factor," is the annual percentage change in the consumer price index for urban
wage earners and clerical workers as computed by the Bureau of Labor Statistics of the
United States Department of Labor for the year before the year immediately preceding the
year of adjustment or three percent, whichever is less;
(7)
"Local effort," shall be calculated for taxes payable in 2011 and shall be the amount of
revenue that could have been generated for the taxes payable in 2010 using a special
education levy of one dollar and twenty cents per one thousand dollars of valuation
increased by the lesser of three percent or the index factor, as defined in
§
10-13-38, plus
a percentage increase of value resulting from any improvements or change in use of real
property, annexation, minor boundary changes, and any adjustments in taxation of real
property separately classified and subject to statutory adjustments and reductions under
chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if assessed the same as
property of equal value.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of local effort shall be
increased by the lesser of three percent or the index factor, established pursuant to
§
10-13-38 plus a percentage increase of value resulting from any improvements or
change in use of real property, annexation, minor boundary changes, and any adjustments
in taxation of real property separately classified and subject to statutory adjustments and
reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§
10-6-31.4, only if
assessed the same as property of equal value;
(8)
"Allocation for a student with a level one disability," for the school fiscal year beginning
July 1, 2004, is $ 3,533.13. For each school year thereafter, the allocation for a student
with a level one disability shall be the previous fiscal year's allocation for such child
increased by the lesser of the index factor or three percent;
(9)
"Allocation for a student with a level two disability," for the school fiscal year beginning
July 1, 2004, is $ 8,277.21. For each school year thereafter, the allocation for a student
with a level two disability shall be the previous fiscal year's allocation for such child
increased by the lesser of the index factor or three percent;
(10)
"Allocation for a student with a level three disability," for the school fiscal year beginning
July 1, 2004, is $ 12, 580.73. For each school year thereafter, the allocation for a student
with a level three disability shall be the previous fiscal year's allocation for such child
increased by the lesser of the index factor or three percent;
(11)
"Allocation for a student with a level four disability," for the school fiscal year beginning
July 1, 2004, is $ 12, 001.80. For each school year thereafter, the allocation for a student
with a level four disability shall be the previous fiscal year's allocation for such child
increased by the lesser of the index factor or three percent;
(12)
"Allocation for a student with a level five disability," for the school fiscal year beginning
July 1, 2004, is $ 15, 882.21. For each school year thereafter, the allocation for a student
with a level five disability shall be the previous fiscal year's allocation for such child
increased by the lesser of the index factor or three percent;
(12A)
"Allocation for a student with a level six disability," for the school fiscal year beginning
July 2004, is $8,122.23. For each school year thereafter, the allocation for a student with
a level six disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(13)
"Child count," is the number of students in need of special education or special education
and related services according to criteria set forth in rules promulgated pursuant to §§ 13-
37-1.1 and 13-37-46 submitted to the Department of Education in accordance with rules
promulgated pursuant to § 13-37-1.1;
(14)
"Average daily membership," the average number of kindergarten through twelfth grade
pupils enrolled in all schools operated by the school district during the previous regular
school year plus the average number of pupils for whom the district pays tuition;
(15)
"Nonpublic school," a sectarian organization or entity which is accredited by the secretary
of education for the purpose of instructing children of compulsory school age. This
definition excludes any school that receives a majority of its revenues from public funds;
(16)
"Nonpublic average daily membership," the average number of children under age sixteen
who are approved for alternative instruction pursuant to § 13-27-2 during the previous
school year plus:
(a)
For nonpublic schools located within the boundaries of a public school district with
an average daily membership of six hundred or more during the previous school
year, the average number of kindergarten through twelfth grade pupils enrolled
during the previous regular school year in all nonpublic schools located within the
boundaries of the public school district;
(b)
For nonpublic schools located within the boundaries of a public school district with
an average daily membership of less than six hundred during the previous school
year, the average number of resident kindergarten through twelfth grade pupils
enrolled during the previous school year in all nonpublic schools located within the
State of South Dakota;
(17)
"Special education average daily membership," average daily membership plus nonpublic
average daily membership;
(18)
"Local need," an amount to be determined as follows:
(a)
Multiply the special education average daily membership by 0.1013 and multiply
the result by the allocation for a student with a level one disability;
(b)
Multiply the number of students having a level two disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level two disability;
(c)
Multiply the number of students having a level three disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level three disability;
(d)
Multiply the number of students having a level four disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level four disability;
(e)
Multiply the number of students having a level five disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level five disability;
(f)
Multiply the number of students having a level six disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level six disability;
(g)
Sum the results of (a) through (f);
(19)
"Effort factor," for taxes payable in 2011, 2012, 2013, 2014, and 2015, the effort factor
is the amount of taxes payable for the year divided by the amount of local effort as
calculated in subdivision (7). The maximum effort factor is 1.0.
Section 6. For taxes payable in 2011, 2012, 2013, 2014, and 2015, the provisions of sections 2 to 5, inclusive, of this Act that limit the maximum amount of revenue that may be generated by the pension, capital outlay, and special education tax levies do not apply to any school district that has less than a ten percent change in the total taxable valuation from the previous year of all real property in the school district, not including the increase of value resulting from any improvements or change in use of real property.
An Act to revise certain tax levy limitations and property tax levies for school districts.
Section 6. For taxes payable in 2011, 2012, 2013, 2014, and 2015, the provisions of sections 2 to 5, inclusive, of this Act that limit the maximum amount of revenue that may be generated by the pension, capital outlay, and special education tax levies do not apply to any school district that has less than a ten percent change in the total taxable valuation from the previous year of all real property in the school district, not including the increase of value resulting from any improvements or change in use of real property.
An Act to revise certain tax levy limitations and property tax levies for school districts.
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I certify that the attached Act originated in the
HOUSE as
Bill
No.
1006
____________________________ Chief Clerk ____________________________ Speaker of the House
Attest:
____________________________ Chief Clerk
____________________________
Attest:
____________________________ Secretary of the Senate
House
Bill
No.
1006
File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________ for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________ Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
