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SD School Funding Formula Hangs on Internet Tax Decision

SD School Funding Formula Hangs on Internet Tax Decision

Photo: WNAX


When the South Dakota Legislature passed the bill raising the sales tax a half cent to fund teacher pay raises, an amendment was added that would roll back the tax if and when the state is successful in a Supreme Court case involving internet sales taxes.
Joy Smolnisky, Executive Director of the South Dakota Budget & Policy Institute, says if that happens, it could actually cut the dollars that go to schools……

Smolnisky says the old funding formula was caught in a no growth pattern………

Smolnisky says the new formula could work for years, if it is allowed to grow….

Smolnisky says the next session of the legislature may have to make some adjustments to the new formula.

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