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revise certain provisions regarding the use of exemption certificates.

South Dakota sellers can now obtain exemption certificates from buyers up to 120 days after the Department of Revenue requests documentation, instead of having to have them at the time of sale. The bill also allows sellers to prove a transaction wasn't taxable through other means within that same 120-day window, and any certificates submitted after 120 days don't have to be accepted by the department.

revise certain references to the Internal Revenue Code.

South Dakota updates the date it uses to reference the federal Internal Revenue Code from January 1, 2019 to January 1, 2020 for tax purposes. This change affects several sections of state tax law so that South Dakota taxes align with the more recent version of federal tax rules.

provide timely refunds for excess payments made in lieu of contributions to the unemployment compensation trust fund.

HB1268 requires South Dakota to refund money to employers who have overpaid into the state's unemployment compensation trust fund. The bill speeds up the process for getting these excess payments back to employers rather than keeping the extra funds in the state system.

authorize the secretary of revenue to contract with certain entities for purposes of creating or maintaining a database to determine agricultural income value and to specify the mandatory and permissive data of the database.

HB1006 allows South Dakota's Secretary of Revenue to hire outside companies to create and maintain a database that tracks the value of agricultural income for tax purposes. The law specifies what information must be included in the database and what information can optionally be added to help determine accurate agricultural property values.

permit the secretary of revenue to issue cease and desist orders and to impose a civil penalty on certain public auctions.

South Dakota's Secretary of Revenue now has the power to fine public vehicle auctions $500 for each violation if they ignore a cease-and-desist order from the department. Previously, the state could only order auctions to stop illegal practices but had no financial penalty option if they refused to comply. The penalties collected go into the state motor vehicle fund.

revise provisions regarding certain sales and use tax rates.

This bill establishes a base sales and use tax rate of 4.5% across multiple tax categories in South Dakota. If sales tax revenue grows by more than the cost of living plus $20 million in a fiscal year, the tax rate automatically decreases by 0.1% the following year, but cannot drop below 2%.

lower the total amount of tax credits that may be claimed on annual premium tax returns.

HB1204 lowers the annual cap on tax credits that insurance companies can claim on their premium tax returns from an unspecified amount to $2.5 million per year, starting in fiscal year 2021. This means insurance companies will have a stricter limit on the total tax breaks they can claim, potentially increasing the state's tax revenue from the insurance industry.

revise provisions regarding tax increment districts.

This bill clarifies how South Dakota calculates the baseline property values (called the "tax increment base") for tax increment districts, which are areas where cities use increased property tax revenue to fund development projects. The change requires that the county's director of equalization provide a detailed list of all properties in the district along with their valuations, and it specifies which tax reduction programs should be ignored when setting the baseline value.

establish the Tax Revenue Study Task Force to study tax revenue in this state.

HB 1274 creates a new Tax Revenue Study Task Force to examine and analyze South Dakota's tax system and revenues. The bill modifies existing law related to task forces or study groups to establish this new group's structure and authority.

create the lottery repeal and recovery fund and revise provisions regarding the distribution of state revenue from video lottery.

HB 1282 creates a new "lottery repeal and recovery fund" and changes how the state distributes money it receives from video lottery operations. The bill modifies the rules about where video lottery revenue goes, though the excerpt provided doesn't include the specific details of the new distribution plan.

establish an annual fee for certain electric motor vehicles and electric hybrid motor vehicles.

SB85 creates a new annual fee that electric vehicle and electric hybrid vehicle owners must pay to the state of South Dakota. This fee replaces some of the fuel tax revenue the state loses when drivers use electric motors instead of gasoline, since electric vehicle owners don't buy as much gas and therefore pay less in gas taxes.

permit the Department of Revenue to disclose tax returns and tax return information to the Legislative Research Council in certain circumstances.

SB 110 allows the Department of Revenue to share tax return information with the Legislative Research Council when the legislature needs it for research or policy analysis purposes. This changes current law, which generally keeps all tax returns confidential and prohibits their disclosure to other state entities without specific authorization.

revise the special education property tax levy for school districts and to revise the state aid to special education formula.

School districts can now levy up to $1.68 per thousand dollars of taxable property value for special education (increased from $1.61), giving them more local funding to cover special education services and assistive technology for students with disabilities. The bill also updates the state aid formula for special education to account for this higher local contribution, changing how state funds are calculated to supplement district spending on special education programs.

revise the boundaries of certain water development districts and to revise certain provisions regarding the election of the board of directors and the levying of taxes in the affected districts.

HB 1118 redraws the boundaries of certain water development districts in South Dakota and changes how their board members are elected and how they can collect taxes from property owners. The specific amendments to state law sections 13-39-75 and 13-55-42 expand and revise the rules governing these districts' operations and revenue collection methods.