Changes to Existing Law

26.809.34 26.809.35 101st Legislative Session 1254 2026 South Dakota Legislature House Bill 1254 HOUSE TAXATION ENGROSSED Introduced by: Representative Heinemann Underscores indicate new language. Overstrikes indicate deleted language. An Act to exempt any soil amendment used exclusively for agricultural purposes 1 from sales tax. tax, and to modify the definition of a soil amendment. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to chapter 10-45: 4 There are specifically exempted from the provisions of this chapter and from the 5 computation of the amount of tax imposed by it, the gross receipts from the sale of any 6 soil amendment, as defined in § 38-19A-1, provided five hundred pounds or more of any 7 one of these products is sold in a single sale to be used exclusively for agricultural 8 purposes. 9 Section 2. That § 38-19A-1 be AMENDED: 10 38-19A-1. Terms as used in this chapter, unless the context otherwise requires, 11 shall mean: 12 (1) "Brand," any trademark, product name, or other specific designation under which 13 any individual soil amendment is offered for sale; 14 (2) "Bulk," nonpackaged form; 15 (3) "Distributing," importing, consigning, manufacturing, producing, compounding, 16 mixing or blending any soil amendment, or offering for sale, selling, bartering, or 17 otherwise supplying any soil amendment in this state; 18 (4) "Distributor," any person who distributes any soil amendment in this state; 19 (5) "Investigational allowance," any allowance for variations inherent in the taking, 20 preparation and analysis of an official sample of a soil amendment; 21 (6) "Label," any display of all written, printed, or graphic matter upon the immediate 22 container or statement accompanying a soil amendment; 23 26.809.35 2 1254 Underscores indicate new language. Overstrikes indicate deleted language. (7) "Labeling," any written, printed, or graphic matter, upon or accompanying any soil 1 amendment, or advertisements, brochures, posters, or television or radio 2 announcements used in promoting the sale of such soil amendment; 3 (7A) "Manipulated manure," any animal or vegetable manure collected or stored in a 4 manner consistent with practices commonly implemented in agricultural production 5 that has been subjected to practices including composting, mechanical dewatering, 6 or pelletizing or altered in any way to change chemical, physical, or biological 7 characteristics; 8 (7B) "Microbe," any microbiological organism or mixture of microbiological organisms 9 intended to produce any physical, chemical, biochemical, biological, or other 10 change in the soil; 11 (8) "Minimum percentage," that percentage of soil amendment ingredient that shall be 12 present in a product before the product may be accepted for registration when 13 distributed in any form or manner; 14 (9) "Official sample," any sample of a soil amendment taken by the secretary and so 15 designated; 16 (10) "Percent," percentage by weight; 17 (11) "Registrant," any person who shall register any soil amendments under the 18 provisions of this chapter; 19 (12) "Secretary," the secretary of the Department of Agriculture and Natural Resources 20 of the State of South Dakota; 21 (13) "Soil amending ingredient," any substance which will improve the physical, 22 chemical, or other characteristic of the soil or improve crop production; 23 (14) "Soil amendment," any substance which is intended to improve the physical, 24 chemical, or other characteristics of the soil or improve crop production, except 25 the following: commercial fertilizer, unmanipulated animal manures, 26 unmanipulated vegetable manures, pesticides, lime or lime sludge produced by a 27 water treatment facility, sewage sludge, as defined in § 38-19-1, and compost as 28 defined in § 38-19-1; 29 (15) "Soil ingredient form," any ingredient or the chemical compound of an ingredient; 30 (16) "Ton," two thousand pounds avoirdupois net weight; and 31 (17) "Weight," the weight of that material offered for sale. 32

26.809.35 26.809.36 101st Legislative Session 1254 2026 South Dakota Legislature House Bill 1254 HOUSE TAXATION ENGROSSED Introduced by: Representative Heinemann Underscores indicate new language. Overstrikes indicate deleted language. An Act to exempt any soil amendment used exclusively for agricultural purposes 1 from sales tax, and to modify the definition of a soil amendment. tax. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to chapter 10-45: 4 There are specifically exempted from the provisions of this chapter and from the 5 computation of the amount of tax imposed by it, the gross receipts from the sale of any 6 soil amendment, as defined in § 38-19A-1, provided five hundred pounds or more of any 7 one of these products is sold in a single sale to be used exclusively for agricultural 8 purposes. 9 Section 2. That § 38-19A-1 be AMENDED: 10 38-19A-1. Terms as used in this chapter, unless the context otherwise requires, 11 shall mean: 12 (1) "Brand," any trademark, product name, or other specific designation under which 13 any individual soil amendment is offered for sale; 14 (2) "Bulk," nonpackaged form; 15 (3) "Distributing," importing, consigning, manufacturing, producing, compounding, 16 mixing or blending any soil amendment, or offering for sale, selling, bartering, or 17 otherwise supplying any soil amendment in this state; 18 (4) "Distributor," any person who distributes any soil amendment in this state; 19 (5) "Investigational allowance," any allowance for variations inherent in the taking, 20 preparation and analysis of an official sample of a soil amendment; 21 (6) "Label," any display of all written, printed, or graphic matter upon the immediate 22 container or statement accompanying a soil amendment; 23 26.809.35 2 1254 Underscores indicate new language. Overstrikes indicate deleted language. (7) "Labeling," any written, printed, or graphic matter, upon or accompanying any soil 1 amendment, or advertisements, brochures, posters, or television or radio 2 announcements used in promoting the sale of such soil amendment; 3 (7A) "Manipulated manure," any animal or vegetable manure collected or stored in a 4 manner consistent with practices commonly implemented in agricultural production 5 that has been subjected to practices including composting, mechanical dewatering, 6 or pelletizing or altered in any way to change chemical, physical, or biological 7 characteristics; 8 (7B) "Microbe," any microbiological organism or mixture of microbiological organisms 9 intended to produce any physical, chemical, biochemical, biological, or other 10 change in the soil; 11 (8) "Minimum percentage," that percentage of soil amendment ingredient that shall be 12 present in a product before the product may be accepted for registration when 13 distributed in any form or manner; 14 (9) "Official sample," any sample of a soil amendment taken by the secretary and so 15 designated; 16 (10) "Percent," percentage by weight; 17 (11) "Registrant," any person who shall register any soil amendments under the 18 provisions of this chapter; 19 (12) "Secretary," the secretary of the Department of Agriculture and Natural Resources 20 of the State of South Dakota; 21 (13) "Soil amending ingredient," any substance which will improve the physical, 22 chemical, or other characteristic of the soil or improve crop production; 23 (14) "Soil amendment," any substance which is intended to improve the physical, 24 chemical, or other characteristics of the soil or improve crop production, except 25 the following: commercial fertilizer, unmanipulated animal manures, 26 unmanipulated vegetable manures, pesticides, lime or lime sludge produced by a 27 water treatment facility, sewage sludge, as defined in § 38-19-1, and compost as 28 defined in § 38-19-1; 29 (15) "Soil ingredient form," any ingredient or the chemical compound of an ingredient; 30 (16) "Ton," two thousand pounds avoirdupois net weight; and 31 (17) "Weight," the weight of that material offered for sale. 32

26.809.36 26.809.37 101st Legislative Session 1254 2026 South Dakota Legislature House Bill 1254 HOUSE ENGROSSED Introduced by: Representative Heinemann Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to exempt any soil amendment used exclusively for agricultural purposes 1 from sales tax. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to chapter 10-45: 4 There are specifically exempted from the provisions of this chapter and from the 5 computation of the amount of tax imposed by it, the gross receipts from the sale of any 6 soil amendment, as defined in § 38-19A-1, provided five hundred pounds or more of any 7 one of these products is sold in a single sale to be used exclusively for agricultural 8 purposes. 9 26.809.37 2 1254 HB1254 ENROLLED An Act to exempt any soil amendment used exclusively for agricultural purposes from sales tax. I certify that the attached Act originated in the: House as Bill No. 1254 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1254 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State