This issue memorandum describes Constitutional Amendment A, an initiative in South Dakota that, if approved, would prohibit taxation of real property for school purposes. The report provides background information on Constitutional Amendment A, which reads as follows: "The legislature shall make such provision by general taxation as with the income from the permanent school fund shall secure a thorough and efficient system of common schools throughout the state. Real property shall not be subject to taxation for school purposes." Supporters began collecting signatures in 1995 and turned in the signed petitions in 1996, in time for the 1998 election. The property tax is the main source of revenue for local units of government in South Dakota and the issue of replacement revenue will become an important issue if the amendment is passed. The sales and use tax is the only current state-revenue source that raises an amount of money equivalent to the amount of property taxed currently levied by schools. Proponents of the amendment believe property taxes are too high and there is too much government waste. Opponents contend that education will be hurt by the amendment because there is no replacement revenue proposed. How the amendment will affect existing bonds is discussed. (RJM)