South Dakota cities can now create a local funding mechanism for capital improvement projects by imposing a gross receipts tax of up to one percent on businesses within their borders. To implement this tax, a city must establish a five-member capital improvement board (made up of one city council member and four residents) that reviews and approves any ordinance establishing the tax, which must specify its purpose and minimum revenue target. This gives municipalities a new revenue option to fund infrastructure and other capital projects without needing state approval.
The amendment expanded the gross receipts tax to include "products transferred electronically" and made it conform to both chapters 10-45 and 10-46 instead of just chapter 10-45.
The amendment narrowed the gross receipts tax requirement from applying to all taxable sales to instead requiring the tax to conform to state tax law under chapters 10-45 and 10-46, except for the rate.
The bill's reference citation changed from 26.800.20 to 26.800.21, and formatting changed from "HOUSE ENGROSSED" with underscores/overstrikes to "ENROLLED" without editorial markings.
Signed by the Governor H.J. 578
Delivered to the Governor H.J. 556
Signed by the President S.J. 512
Signed by the Speaker H.J. 542
Senate Do Pass Amended Passed, YEAS 19, NAYS 15. S.J. 484
Local Government Do Pass Passed, YEAS 5, NAYS 2.
Local Government Scheduled for hearing
First read in Senate and referred to Senate Local Government S.J. 248
House of Representatives Do Pass Amended Passed, YEAS 36, NAYS 30. H.J. 278
House of Representatives Reconsidered Passed, YEAS 37, NAYS 29. H.J. 277
House of Representatives Intent to reconsider H.J. 265
House of Representatives Do Pass Amended Failed, YEAS 35, NAYS 30. H.J. 265
House of Representatives Motion to amend H.J. 264
Local Government Do Pass Amended Passed, YEAS 8, NAYS 4.
Local Government Motion to amend
Local Government Scheduled for hearing
First read in House and referred to House Local Government H.J. 192
Prime sponsor · Rep.
R
Cosponsors
Do Pass Amended
Local Government — Do Pass
Reconsidered
Do Pass Amended
Do Pass Amended
Local Government — Do Pass Amended