An Act to provide for the distribution of tax revenue from certain sales gross receipts occurring on fairgrounds, and to provide a minimum amount for certain expenditures made by counties relating to county fairs and fairgrounds.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That chapter 10-45 be amended with a NEW SECTION:

Any person filing a return and remittance in accordance with the provisions of § 10-45-27.3 shall report the amount of tax remitted in the previous period on gross receipts from all sales of tangible personal property and on gross receipts from services rendered, taxable under this chapter, occurring on county fairgrounds.

TheIf a county abides by the provisions of section 3 of this Act in the previous fiscal year, the amount of tax remitted on gross receipts from all sales of tangible personal property and on gross receipts from services rendered, pursuant to § 10-45-27.3, occurring on a county fairground shall be deposited in the general a restricted county fairground fund of that county, to be used for purposes set forth in §§ 7-27-1, 7-27-1.1, and 7-27-3.

Section 2. That § 10-45-47.1 be AMENDED:

10-45-47.1. The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning:

(1) Licensing, including bonding and filing license applications;

(2) The filing of returns and payment of the tax;

(3) Determining the application of the tax and exemptions;

(4) Taxpayer record-keeping requirements; and

(5) Determining auditing methods; and

(6) Depositing moneys into county general restricted funds as provided in section 1 of this Act.

Section 3. That chapter 7-27 be amended with a NEW SECTION:

Each fiscal year, a county shall make expenditures from the county general fund for purposes set forth in §§ 7-27-1, 7-27-1.1, and 7-27-3, in an amount totaling no less than the minimum amount for the county.

For purposes of this section, the term, base year amount, is the average over the five fiscal years immediately preceding the 2024 fiscal year, after removing the highest and lowest values of the five fiscal years, of all expenditures from a county general fund for purposes set forth in §§ 7-27-1, 7-27-1.1, and 7-27-3. For purposes of this section, the term, minimum amount, is the base year amount after being annually increased by the lesser of three percent or the index factor, as defined in § 10-13-38.