Bill > SB243

This bill proposes to create a new transaction tax and use the revenue generated to reduce certain property taxes. The county auditor will report the total property taxes imposed on owner-occupied single-family dwellings, agricultural property, and nonagricultural property to the Department of Revenue. The Secretary of the Department of Revenue will then use the collected transaction tax revenue, deposited into a "property tax replacement fund," to first eliminate property taxes on owner-occupied homes, then on agricultural property, and finally on nonagricultural property, until the fund is depleted or taxes are zeroed out. The bill defines "retail transaction" as the sale or lease of tangible goods or services, with a specific tax rate of $1.50 for transactions of $15 or more, and 10% for transactions under $15. It also clarifies that multiple items purchased together constitute a single transaction. Penalties are established for late payment and tax evasion, including a Class 1 misdemeanor for failure to pay within sixty days and a Class 6 felony for filing a false return. The bill also amends existing laws to include this new transaction tax in provisions related to contractor billing, gross receipts calculations, and tax investigations.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26993