South Dakota 2026 Regular Session

South Dakota Senate Bill SB85

Introduced
1/14/26  
Refer
1/14/26  
Report Pass
1/22/26  
Engrossed
1/26/26  
Refer
1/29/26  
Report Pass
2/2/26  

Caption

Require an election for an excess tax levy of a school district.

Impact

The proposed legislation aims to give taxpayers a clearer voice regarding school funding decisions, particularly when it comes to significant tax increases. An opt-out process will allow voters to reconsider any decision made by their school district to impose an excess levy. This bill not only affects how local school districts handle their financial strategies but also reinforces the importance of engagement and transparency regarding taxpayer contributions. By requiring voter approval, SB85 seeks to build greater accountability within local school governance and potentially alleviate ongoing concerns about unchecked property tax increases.

Summary

Senate Bill 85, introduced by Senator Sue Peterson, mandates that local school districts hold elections for any proposed excess tax levies intended to raise additional revenue for their general fund or capital outlay fund. With the amendment of existing laws, the bill requires an affirmative two-thirds vote from the governing body of a school district before moving forward with an excess tax levy. Furthermore, the bill outlines strict guidelines for notifying taxpayers about potential tax increases, including specific publication requirements and a clear ballot statement detailing the duration and total dollar amount of the tax levy.

Sentiment

The sentiment expressed during discussions surrounding SB85 appears to be mixed. Supporters argue that requiring a public vote on excess tax levies ensures that taxpayers have a direct say in the financial decisions affecting their communities. Advocates for the bill believe it promotes responsible governance and fiscal accountability. Conversely, opponents have raised concerns that this could lead to delays in necessary funding for schools, especially in times when immediate financial resources are required for educational services. Critics worry that frequent elections might overwhelm voters and create obstacles for districts attempting to secure essential funding.

Contention

One notable point of contention is the potential impact of requiring a public referendum for excess tax levies on smaller or underfunded school districts. Opponents argue that the added bureaucratic step may hinder these districts' ability to respond swiftly to funding needs, resulting in detrimental educational consequences. Others express concerns over whether the requirement to hold an election for tax levies will exacerbate discrepancies in educational funding across various districts, particularly those in economically disadvantaged areas that may struggle to gain voter support. The debate surrounding SB85 highlights the tension between maintaining local control and ensuring adequate funding for schools.

Companion Bills

No companion bills found.

Previously Filed As

SD SB169

Require a public hearing prior to a vote to impose an excess tax levy.

SD SB216

Reduce the growth in the assessed value of owner-occupied property, limit increases in certain property tax revenues, revise provisions regarding school district excess tax levies, and revise eligibility requirements for a property tax assessment freeze.

SD HB1130

Provide permissible dates for municipal and school district elections.

SD SB55

Revise property tax levies for school districts and to revise the state aid to general and special education formulas.

SD HB1138

Reduce a maximum property tax mill levy on owner-occupied single-family dwellings for school district general funds, and to repeal certain sales tax exemptions.

SD SB208

Amend provisions pertaining to a school district's proposed opt out, capital outlay certificate, or other agreement.

SD HB1093

Modify the permissible dates for a school district bond election.

SD HB1235

Reduce a limit on the annual increases of property tax revenues payable to certain taxing districts, and to subject school districts to a limit on property taxes collected in a year.

SD SB191

Limit annual valuation increases on owner-occupied single-family dwellings and provide an exception for mill rate limitations on taxing districts.

SD SB121

Reduce maximum values for certain property taxes levied on owner-occupied single-family dwellings, and to increase the rates for certain gross receipts taxes and use taxes.

Similar Bills

No similar bills found.