Bill > HB1072

This bill subjects lithium to a severance tax in South Dakota. The key provisions are: 1. Lithium is now subject to the same severance tax as other "energy minerals" under Chapter 10-39A of the state code, where half the revenue goes to the county where the lithium was severed and half goes to the state's general fund. 2. A new section defines the taxable value of severed and saved lithium as the sales price per pound of the lithium content, or the market value if the lithium is not sold. 3. Energy minerals and lithium are now both subject to the severance tax when they are sold or consumed, whichever occurs first. 4. Operators who extract lithium must designate an operator to file tax returns and pay the severance tax on behalf of all the owners. 5. Lithium producers must file quarterly reports on the amount of lithium subject to the tax and remit the tax payment. 6. The existing 2.4 mill conservation tax on the severance of energy minerals now also applies to lithium, with the revenue going to the state's environmental and natural resources fund.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/23761