Changes to Existing Law

There shall be established within the state treasury the sales and use tax collection6 fund for the purpose of administering the sales, use, municipal non-ad valorem, and contractors' excise taxes. Charges for the administration and collection of taxes collected pursuant to chapter8 10-52 shall be deposited into the sales and use tax collection fund. In addition, the secretary of9 the Department of Revenue shall, on a monthly basis, deposit revenue collected as a result of10 taxes imposed in chapters 10-45, and 10-46, and 10-58 in the sales and use tax collection fund. The total amount deposited in the sales and use tax collection fund may not exceed the amount12 budgeted for such purposes. All money in the fund created by this section shall be budgeted and13 expended in accordance with the provisions of Title 4 on warrants drawn by the state auditor14 on vouchers approved by the secretary of the Department of Revenue. At the end of each fiscal year any cash balance left in the sales and use tax collection fund16 shall be transferred to the general fund.

Any person required to file a return and remit the tax imposed by chapter 10-45, who holds a license issued pursuant to chapter 10-45, who timely files the return due, and who15 timely remits the tax due, is allowed, as compensation for the expense of collecting and paying16 the tax, a credit equal to one and one-half percent of the gross amount of the tax due. However, the credit may not exceed seventy dollars per return period. If a person is required to file a return and to remit tax more than once within a thirty day19 period, the collection allowance credit may not exceed seventy dollars for all returns filed and20 all remittances made within the thirty day period. The collection allowance credit authorized by this section only applies to taxes reported on22 the sales and use tax return, including the taxes imposed by chapters 10-45, 10-45D, 10-46, 10- 46E, 10-52, 10-52A, 10-58, and 10-33A, and §§ 32-5B-20 and 10-62-2.24 - 4 -SB The collection allowance credit authorized by this section shall be granted for any return to1 be filed and for any tax to be remitted after January 1, 2014. The collection allowance credit authorized by this section shall only be granted to a person3 who timely files the return due by electronic means and who timely remits the tax due by4 electronic means. For any tax collected by the department on behalf of another entity, upon which the6 collection allowance credit is calculated, the entities shall negotiate in good faith to share in the7 payment of the collection allowance credit. The department may implement such allocation of8 collection allowance credit directly or through the adjustment of any administrative fee charged9 pursuant to § 10-59-52. No person that has selected a certified service provider as its agent as set forth in § 10-45C- is entitled to the collection allowance credit authorized by this section if the certified service12 provider receives a monetary allowance as provided by the Streamlined Sales and Use Tax13 Agreement authorized by chapter 10-45C for performing the retailer's sales and use tax14 functions in this state. No collection allowance credit authorized by this section may be granted to any person who16 has outstanding tax returns due to the department or who has outstanding tax remittances due17 to the department.

The secretary of revenue may prepare a list of at least one hundred delinquent20 persons who owe the largest amount of tax for chapters 10-45, 10-45D, 10-46, 10-46E, 10-46A, 10-46B, 10-52, 10-52A, 10-58, and 10-33A and § 32-5B-20, and that are delinquent in the22 payment of tax for chapters 10-45, 10-45D, 10-46, 10-46E, 10-46A, 10-46B, 10-52, 10-52A, 10-58, and 10-33A and § 32-5B-20 to the department, if a lien has been filed against the person.24 - 5 -SB The list shall include at least the top one hundred persons with total delinquent final liabilities1 for tax in chapters 10-45, 10-45D, 10-46, 10-46E, 10-46A, 10-46B, 10-52, 10-52A, 10-58, and2 10-33A and § 32-5B-20, including penalties and interest. The list shall contain the person's3 name; the business name, if any; address; and the amount of total tax, penalties and interest4 outstanding of each delinquent person.

If the state is able to enforce the obligation to collect and remit sales tax on remote7 sellers who deliver tangible personal property, products transferred electronically, or services8 directly to the citizens of South Dakota, the additional net revenue from such obligation shall9 be used to reduce the rate of certain taxes. The rate of tax imposed by §§ 10-45-2, 10-45-5, 10- 45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10- 46-69, 10-46-69.1, 10-46-69.2, and 10-46E-1, and 10-58-1 shall be reduced by one-tenth percent12 on July first following the calendar year for which each additional twenty million dollar13 increment of net revenue is collected and remitted by such remote sellers. However, the rate of14 tax imposed by §§ 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45- 71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46-69, 10-46-69.1, 10-46-69.2, and 10-46E-1, and 10- 58-1 may not be reduced below four percent pursuant to the provisions of this section.