S and M are planning a party. Since they are both hosting, they have agreed to split the cost for everything in half. The catering bill is $325, the venue bill is $250, and the DJ is $375. If state tax is 9%, What will S's portion cost?

The total cost of the party is $325 + $250 + $375 = $<<325+250+375=950>>950.

The state tax is $950 * 0.09 = $<<950*0.09=85.5>>85.5.
So, the total cost of the party including tax is $950 + $85.5 = $<<950+85.5=1035.5>>1035.5.
Therefore, S's portion of the cost will be half of $1035.5 which is $1035.5/2 = $<<1035.5/2=517.75>>517.75. Answer: \boxed{517.75}.