Bill > SB96

This bill authorizes counties to impose a local gross receipts tax, which is a tax on the total amount of sales of tangible goods, electronically transferred products, and services, at a rate not exceeding one-half percent. The revenue generated from this tax would be deposited into a dedicated "property tax reduction fund" within the county. The primary purpose of this fund is to provide a credit against county property taxes specifically for owner-occupied properties, meaning homes where the owner lives. If there are any remaining funds after fully covering the property tax for owner-occupied homes, the excess will be used to provide a credit for all other properties, including agricultural and non-agricultural land. Counties would implement this tax by adopting an ordinance, which could be subject to a public vote, and the tax would take effect on either January 1st or July 1st of the following year, with at least 90 days' notice to the Department of Revenue. The bill also makes conforming changes to existing tax laws to include this new county gross receipts tax in various provisions related to contractor billing and the definition of gross receipts.

Budget and Finance, Government Affairs

Taxation (Senate)

https://sdlegislature.gov/#/Session/Bill/26772