Bill > HB1245

This bill authorizes municipalities to create a local funding mechanism for capital improvement projects by allowing them to impose a gross receipts tax of up to one percent, which must be approved by a newly established capital improvement board and then by at least sixty percent of the voters in a municipal election. The capital improvement board will consist of five members: one from the municipal governing body and four residents, appointed by the mayor and approved by the governing body, serving three-year terms. Funds collected from this tax must be placed in a special fund and can only be used for acquiring or leasing property, equipment, or for the construction, repair, or renovation of municipal property, with the possibility of transferring ownership to a county or school district after project completion. The tax's duration is limited to a maximum of sixty months or until a specified minimum amount is collected, and a municipality cannot impose this tax again within twenty-four months of collecting funds from a previous imposition of the same tax.

Government Affairs

https://sdlegislature.gov/#/Session/Bill/27099