Bill > SB18

This bill amends South Dakota law to remove specific adjustments made to taxable income for the bank franchise tax that were related to bad debts. The bank franchise tax is a tax levied on banks. The bill specifically targets provisions within sections 10-43-10.2 and 10-43-10.3 of the South Dakota Codified Laws, which detail amounts that are either added to or subtracted from taxable income. These adjustments, particularly those concerning bad debts, were previously tied to definitions and rules found in the United States Internal Revenue Code, which is the federal tax law. By repealing these modifications, the bill simplifies how banks calculate their taxable income for state franchise tax purposes, effectively eliminating the special treatment for bad debt deductions that was previously allowed.

Budget and Finance

Taxation (Senate)

https://sdlegislature.gov/#/Session/Bill/26671