"      Section 22. That § 13-13-72.1 be amended to read as follows:

     13-13-72.1.   Any adjustments in the levies specified in subdivision 13-13-10.1(6) §  10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the adjustment is made. In addition to the adjustments in the levies provided by this section, the levies for nonagricultural property and owner-occupied single-family dwellings shall also be adjusted as necessary to account for the additional increase in the total assessed value for nonagricultural property and owner-occupied single-family dwellings pursuant to section 1 of this Act. ".

"
     Section 20. That § §  10-6-33.1, 10-6-33.4, 10-6-33.6, 10-6-33.14, 10-6-33.15, 10-6-33.17, 10-6- 33.18, 10-6-33.19, 10-6-33.20, and 10-6-33.23 be repealed.".

"      Section 1. Terms used in this Act mean:

     Section 3. Any commercial renewable energy production facility that uses renewable resources, such as sun, wind, geothermal, or biomass to produce energy; that is qualified to produce and convert renewable energy; and that leases base, foundation, tower, substation, and facility land from a South Dakota landowner is exempt from the taxes imposed under the provisions of chapters 10-46A, 10-46B, and 10-46C for the construction of a new or expanded facility, the contractor's excise tax, and sales and use taxes attributed to the project costs, excluding any associated transmission facilities.

     Section 4. That § 10-4-36 be repealed.

     10-4-36.   All real property used or constructed for the purpose of producing electricity for commercial purposes that utilizes the wind as an energy source is classified for tax purposes as wind energy property and shall be assessed and taxed in the same manner as other real property and shall be locally assessed by the county director of equalization pursuant to § 10-3-16. For the purposes of §§ 10-4-36 to 10-4-38, inclusive, real property includes the base, foundation, tower, and substations. Real property does not include the wind turbine or blades attached thereto.

     Section 5. That § 10-4-37 be repealed.

     Section 6. That § 10-4-38 be repealed.

     10-4-38.   Wind energy property is not subject to any discretionary formulas authorized by Title 10.

     Section 7. A tax of $0.0025 per produced kilowatt/hour transmitted outside the state of South Dakota is imposed on any new renewable energy production facility that begins generating electricity after July 1, 2007. Any nonrenewable energy production facility existing on March 1, 2007 is exempt from the tax imposed in this section. The expansion of any such existing nonrenewable energy production facility is exempt from the tax.

     Section 8. A tax of $0.0025 per kilowatt/hour transmitted over any transmission line that has been installed after July 1, 2007 is imposed on any renewable energy production facility that uses the transmission line.

     Section 9. Money collected from the taxes established in sections 7 and 8 of this Act shall be deposited in the renewable energy development fund, which is hereby established as a special fund in the state treasury. Money in the fund consists of money deposited pursuant to this section, interest on investments, and moneys from all legal public and private sources, including legislative appropriations and federal grants. Money may be expended from the fund as determined by the general appropriations act according to Title 4. Money deposited in the fund from revenues generated pursuant to section 8 of this Act shall be used for projects that build capacity for the transmission or generation of electric energy from renewable sources. Money deposited in the fund from revenues generated pursuant to section 7 of this Act shall be used for the promotion, publicizing, and development of opportunities and capabilities in South Dakota related to the development of renewable energy; for administrative costs; and for other purposes related to the development and use of renewable energy. Of any additional revenue generated under section 7 of this Act, fifty and one tenth percent shall be distributed to the counties on a pro rata basis according to population, and forty-nine and nine tenths percent shall be deposited in the general fund. The South Dakota Energy Infrastructure Authority established pursuant to § 1-16I-2 shall administer the programs, projects, and activities authorized pursuant to this section."

Lois Henry