SB 243

 26.694.20  101st Legislative Session  243
                                       2026 South Dakota Legislature
                                                 Senate Bill 243
 Introduced by: Senator Carley
1 An Act to impose a transaction tax and dedicate revenues collected to supplant
2certain property taxes, and to provide a penalty therefor.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
4 Section 1. That a NEW SECTION be added to chapter 10-13:
5Within twenty days of applying the taxes imposed on real property by all taxing
6     districts in a county, the county auditor shall certify to the secretary of the Department of
7     Revenue the total amount of taxes imposed within the county on:
8     (1)      Owner-occupied single-family dwellings;
9     (2)      Agricultural property; and
10     (3)      Nonagricultural property.
11 Section 2. That a NEW SECTION be added to chapter 10-13:
12Within twenty days of receiving the certifications of all county auditors pursuant to
13     section 1 of this Act, the secretary of the Department of Revenue shall determine the
14     amount of moneys distributed to each county for purposes of reducing property tax levies
15     in the following manner:
16     (1)      Reduce all levies on owner-occupied single-family dwellings in all counties in an
17equal proportion, until the taxes imposed on owner-occupied property are zero or
18until no moneys remain in the property tax replacement fund;
19     (2)      If moneys remain in the property relief fund after the reduction in subdivision (1),
20reduce all levies on agricultural property in all counties in an equal proportion, until
21the taxes imposed on agricultural property are zero or until no moneys remain in
22the property tax replacement fund; and
23     (3)      If moneys remain in the property tax relief fund after the reduction in subdivisions
24(1) and (2), reduce all levies on nonagricultural property in all counties in an equal
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1proportion, until the taxes imposed on nonagricultural property are zero or until no
2moneys remain in the property tax replacement fund.
3 Section 3. That a NEW SECTION be added to chapter 10-13:
4The secretary of the Department of Revenue shall notify the county auditor of the
5    distributions calculated pursuant to section 2 of this Act, and the county auditor shall
6    reduce the taxes imposed on property in accordance with the reductions provided for by
7    the Department of Revenue for the upcoming tax year.
8 Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 10:
9Terms used in this chapter mean:
10    (1)      "Final purchase price," the gross receipts taxable under chapter 10-45;
11    (2)      "Retail transaction," the sale, lease, or rental of tangible personal property,
12services, or products transferred electronically, other than for resale, sublease, or
13subrent; and
14    (3)      "Sale item", tangible personal property, services, or products transferred
15electronically as defined and used in chapter 10-45.
16 Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 10:
17There is created in the state treasury the property tax replacement fund. The fund
18    consists of all moneys collected under this chapter and deposited into the fund. The
19    Department of Revenue shall administer the fund. The only purpose of the fund is to
20    distribute moneys to political subdivisions in this state to be used for their ordinary and
21    capital expenses, and to defray the cost of administering the tax imposed in section 5 of
22    this Act.
23The property tax replacement fund is continuously appropriated to the Department
24    of Revenue.
25 Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 10:
26There is imposed a tax on each retail transaction that generates gross receipts
27    subject to the tax imposed pursuant to chapter 10-45.
28For each retail transaction with a final purchase price of fifteen dollars or more, the
29    tax imposed is one dollar and fifty cents. For each retail transaction with a final purchase
30    price of less than fifteen dollars, the tax imposed is ten percent of the final purchase price.
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1 Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 10:
2A transaction where more than one sale item is being purchased at the same time
3    and by the same person, and where the final purchase price of the transaction includes all
4    sale items, constitutes a single retail transaction.
5 Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 10:
6Except as otherwise provided in this section, a person licensed pursuant to chapter
7    10-45, or a person whose receipts are subject to the tax imposed by chapter 10-45, shall
8    file a return and pay the tax due to the Department of Revenue on or before the twentieth
9    day of the month following each monthly period, in the same manner in which the person
10    files a return and remits the tax under chapter 10-45. The return must be filed on forms
11    prescribed and furnished by the department.
12If the person remits the tax by electronic transfer to the state, the person must file
13    the return by electronic means on or before the twentieth day of the month following each
14    period and remit the tax on or before the twenty-fifth day of the month following each
15    period.
16The secretary of the Department of Revenue may require or allow a person to file
17    a return, and pay any tax due, on a basis other than monthly. The return and remittance
18    is due the twentieth day of the month following the reporting period or at a time otherwise
19    determined by the secretary.
20The secretary may grant an extension of not more than five days for filing a return
21    and remittance.
22Unless an extension is granted, penalty or interest under § 10-59-6 must be paid
23    if a return or remittance is not made on time.
24 Section 9. That a NEW SECTION be added to a NEW CHAPTER in title 10:
25A person who fails to pay the tax due under this chapter within sixty days from the
26    date the tax becomes due is guilty of a Class 1 misdemeanor.
27A person who files a false return in an attempt to evade the tax imposed by this
28    chapter is guilty of a Class 6 felony.
29 Section 10. That § 10-46A-12 be AMENDED:
3010-46A-12. A contractor may list the contractor's excise tax and any use tax
31    imposed under chapter 10-45, 10-46, or 10-52, or sections 4 to 9, inclusive, of this Act,
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1    as a separate line item on all contracts and bills, both for public and private entities. The
2    line item for excise and use taxes is a part of the contractor's total bill and is collectible
3    from all entities, both public and private.
4 Section 11. That § 10-46B-10 be AMENDED:
510-46B-10. A contractor may list the contractor's excise tax and any use tax
6    imposed under chapter 10-45, 10-46, or 10-52, or sections 4 to 9, inclusive, of this Act,
7    as a separate line item on all contracts and bills, both for public and private entities. The
8    line item for excise and use taxes is a part of the contractor's total bill and is collectible
9    from all entities, both public and private.
10 Section 12. That § 10-52-1.1 be AMENDED:
1110-52-1.1. Notwithstanding any other provision of law, gross receipts as defined
12    in this chapter do not include any tax imposed by this chapter and chapters 10-45, 10-
13    45D, and 10-52A that, and sections 4 to 9, inclusive, of this Act, which is separately stated
14    on the invoice, bill of sale, or similar document given to the purchaser.
15 Section 13. That § 10-59-1 be AMENDED:
1610-59-1. The provisions of this chapter may only apply to proceedings commenced
17    under this chapter concerning the taxes, the fees, the surcharges, or the persons subject
18    to the taxes, fees, or surcharges imposed by, or any civil or criminal investigation
19    authorized by, chapters 10-33A, 10-39, 10-39A, 10-39B, 10-43, 10-45, 10-45D, 10-46,
20    10-46A, 10-46B, 10-46E, 10-47B, 10-50C, 10-52, 10-52A, 10-62, 32-3, 32-3A, 32-5, 32-
21    5B, 32-6B, 32-9, 32-10, 34-45, and 34A-13, and §§ 10-50-61, 49-31-51, and 50-4-13 to
22    50-4-17, inclusive, and sections 4 to 9, inclusive, of this Act.
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