South Dakota currently taxes contractors on new single-family home construction at 5.5% on all gross receipts, but this bill creates a tax break by exempting the first $150,000 of receipts from taxation and only applying the 5.5% rate to amounts above that threshold. The $150,000 exemption amount will automatically adjust each July based on construction cost inflation, as measured by the Engineering News Record's Building Cost Index.
This bill does not directly amend codified state law.
Taxation Tabled Passed, YEAS 12, NAYS 0. H.J. 1
Taxation Scheduled for hearing
First read in House and referred to House Taxation H.J. 178
John Mills
Prime sponsor · Rep.
R
Cosponsors
Taxation — Tabled