An Act to provide school choice through an education tax credit.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 10-13:

Any owner of property that is subject to taxation pursuant to chapter 10-4 may receive a property tax credit to be applied toward any property tax levied on the property for the school district in which the property is located. The reduction is based on education expenses the owner has incurred for any child who meets the following qualifications:

(1) The child is at least five years old, but not older than eighteen years; and

(2) The child is a kindergarten-through-twelfth-grade student in South Dakota enrolled in a nonpublic school or the child is receiving alternative instruction pursuant to § 13-27-3.

Incurred, eligible education expenses for which a property tax credit may be received pursuant to this Act include tuition and school fees for any child enrolled in a nonpublic school, and the purchase of curriculum and other necessary educational materials and resources.:

(1) Tuition;

(2) Fees for sports programs and fine arts programs;

(3) Textbooks, curricula, and instructional materials and supplies;

(4) Educational therapies or tutoring;

(5) Registration fees for:

(a) Nationally standardized achievement tests;

(b) Advanced placement tests;

(c) Tests related to postsecondary admission; and

(d) Conferences for educational purposes;

(6) Transportation services between a student's residence and:

(a) The nonpublic school in which the student is enrolled;

(b) The institution of higher education at which the student is enrolled; and

(c) A location related to the education or the student; and

(7) Technological devices, instruments, and equipment necessary for the student to participate in a form of educational pursuit provided in this section.

Section 2. That a NEW SECTION be added to chapter 10-13:

The amount of the property tax credit received by any property owner in any year may not exceed eighty percent of the total amount of school district taxes owed to that school district by the owner for that year. In addition, the total amount of property tax credits received by an individual property owner or by multiple property owners pursuant to this Act for incurred eligible education expenses for any individual child in any year may not exceed eighty percent of the current year's per student equivalent in the general state aid to education formula as defined in § 13-13-10.1. After the state share is calculated, the credits will be deducted from the local effort in the district in which the property is located.

Section 3. That a NEW SECTION be added to chapter 10-13:

To apply for a property tax credit pursuant to this Act, a property owner shall, prior to January first, submit an application to the county director of equalization stating that the person is the owner of the property and stating the name and school enrollment information for any child for whom the property owner has incurred eligible education expenses. The application shall be on a form prescribed by the Department of Revenue and shall be verified by the school in which each child is enrolled. On the application, the property owner shall list each eligible education expense the owner has incurred and the cost of each. The property owner shall sign the application under penalty of perjury and provide documentation to substantiate each expense listed.

Section 4. That a NEW SECTION be added to chapter 10-13:

The property tax bill sent to each taxpayer pursuant to § 10-21-1.1 shall reflect any property tax credits received pursuant to this Act.

Section 5. That a NEW SECTION be added to chapter 10-13:

The Department of Revenue shall promulgate rules pursuant to chapter 1-26 to specify the forms and procedures for filing and processing requests for property tax credits under this Act and the documentation that is necessary to verify the eligible education expenses.