SB 130 treats merchandise given away as prizes in redemption stores (like arcade or gaming establishments) as purchases for resale, which affects how those businesses are taxed and regulated under state law. This change means redemption store operators will need to report and potentially pay sales tax on prize merchandise the same way traditional retailers do for inventory purchased for resale. The bill modifies tax and business licensing rules across multiple chapters of South Dakota law to implement this new classification.
Senate Do Pass Failed, YEAS 14, NAYS 19. S.J. 359
Senate Deferred to another day S.J. 343
Taxation Do Pass Passed, YEAS 4, NAYS 3. S.J. 9
Taxation Scheduled for hearing
First read in Senate and referred to Senate Taxation S.J. 147
Al Novstrup
Prime sponsor · Sen.
R
Kirk Chaffee
Prime sponsor · Rep.
R
Cosponsors
Do Pass
Taxation — Do Pass