HB 1321

 26.46.12  101st Legislative Session  1321
                                          2026 South Dakota Legislature
                                                  House Bill 1321
 Introduced by: Representative Randolph
1 An Act to require that county treasurers calculate excise tax using the amount
2shown on a bill of sale for a used vehicle sold, leased, or transferred by a
3person other than a licensed motor vehicle dealer.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
5 Section 1. That § 32-5B-4 be AMENDED:
632-5B-4. For the purposes of this chapter, the "purchase price" is means:
7    (1)      For a new motor vehicle sale or lease, the total consideration, whether received in
8money or otherwise. However, when, provided that if a motor vehicle is taken in
9trade as a credit or part payment on a the new motor vehicle, the credit or trade-
10in value allowed by the seller shall be is deducted from the total consideration for
11the new motor vehicle to establish the purchase price;
12    (2)      For a used motor vehicle sold or leased by a licensed motor vehicle dealer, the
13total consideration for the used motor vehicle, whether received in money or
14otherwise. However, when, provided that if a motor vehicle is taken in trade by the
15dealer as a credit or part payment on a the used motor vehicle, the credit or trade-
16in value allowed by the dealer shall be is deducted from the total consideration so
17that the net consideration is established;
18    (3)      For a used motor vehicle sold, leased, or transferred by any person other than a
19licensed motor vehicle dealer, the total consideration received in money or
20otherwise. However, when a motor vehicle is taken in trade as a credit or part
21payment on a used motor vehicle, the credit or trade-in value shall be deducted
22from the total consideration so that the net consideration is established. The
23purchaser and seller of the motor vehicle shall submit to the county treasurer a bill
24of sale, approved and supplied by the secretary. If a bill of sale is not submitted,
25the excise tax will be assessed on the retail value as stated in a nationally
26recognized dealers' guide as approved by the secretary of revenue. If the excise
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                                                                              Overstrikes indicate deleted language.
 26.46.12  2  1321
1tax is assessed on the retail value, the value of the motor vehicle taken in as credit
2on trade-in shall be the retail value as stated in the nationally recognized dealers'
3guide amount shown on the bill of sale, as set forth in section 2 of this Act;
4    (4)     For a new or used motor vehicle, as described in subdivision (1) or (2) of this
5section, which is acquired by gift or other transfer for no or nominal consideration,:
6(a)    If a new motor vehicle, the manufacturers' suggested dealer list price for
7new motor vehicles and for; or
8(b)    If a used motor vehicles vehicle, the retail value, as stated in a nationally
9recognized dealers' guide approved and furnished by the secretary of
10revenue;
11    (5)     For a motor vehicle manufactured by a person who registers it under the laws of
12this state, the amount expended for materials, labor, and other properly allocable
13costs of manufacture or, in the absence of actual expenditures for the manufacture
14of a part or all of the motor vehicle, the reasonable value of the completed motor
15vehicle;
16    (6)     For a rebuilt motor vehicle, upon its initial registration and titling, the total
17consideration for the salvage vehicle, whether received in money or otherwise, and
18the total consideration for any assemblies, subassemblies, parts, or component
19parts used;
20    (7)     For either a new or used motor vehicle or a used vehicle, as defined by described
21in § 32-5B-21, which is a closed lease, the total consideration, whether received in
22money or otherwise. Total consideration is all lease payments including cash,
23rebates, the net trade-in, extended warranties, administrative fees, acquisition
24fees, or any other fees assessed on the purchase of the vehicle. Total consideration,
25but does not include title fees, registration fees, motor vehicle excise tax paid
26pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal
27excise taxes attributable to the sale of the motor vehicle to the owner or to the
28lease of the motor vehicle by the owner, insurance, and refundable deposits; or
29    (8)     For either a new or used motor vehicle or a used vehicle, as defined by described
30in § 32-5B-21, which is leased, and the terms of the lease are either not certain at
31the time the lease contract is executed or the lease is open ended, the purchase
32price shall be is the total consideration, whether received in money or otherwise.
33Total consideration includes is the purchase price of the motor vehicle, plus cash,
34rebates, the net trade-in, extended warranties, administrative fees, acquisition
35fees, or any other fees assessed on the purchase of the vehicle. Total consideration,
                                                                               Underscores indicate new language.
                                                                             Overstrikes indicate deleted language.
 26.46.12  3  1321
1but does not include title fees, registration fees, motor vehicle excise tax paid
2pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal
3excise taxes attributable to the sale of the motor vehicle to the owner or to the
4lease of the motor vehicle by the owner, insurance, and refundable deposits.
5 Section 2. That a NEW SECTION be added to chapter 32-5B:
6At the time an owner sells, leases, or transfers a used vehicle as described in
7    subdivision 32-5B-4(3), the owner must provide to the purchaser a bill of sale, in a form
8    approved by the secretary, which states the total consideration received, in money or
9    otherwise. The purchaser shall submit the bill of sale to the county treasurer within forty-
10    five days after the date of the sale, lease, or transfer.
11The excise tax imposed pursuant to § 32-5B-1 is assessed on:
12    (1)     The amount shown on the bill of sale, provided that if a motor vehicle is taken in
13trade as a credit or part payment on the used vehicle, the credit or trade-in value
14is deducted from the total consideration; or
15    (2)     If a bill of sale is not submitted, or if the used vehicle is transferred without
16consideration and is not exempt pursuant to § 6 32-5B-2, the retail value, as stated
17in a nationally recognized dealers' guide approved by the secretary of revenue,
18provided that if a motor vehicle is taken in trade as a credit or part payment on
19the used vehicle, the retail value of the motor vehicle taken in trade is deducted
20from the total consideration.
                                                                              Underscores indicate new language.
                                                                            Overstrikes indicate deleted language.