An Act to include lithium in the definition of precious metal for purposes of the minerals severance tax, and to set the tax rate for lithium severed in this state.

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

Section 1. That § 10-39-42 be AMENDED:

10-39-42. Terms used in this chapter mean:

(1) "Department," the South Dakota Department of Revenue;

(2) "Precious metals," gold, and silver, and lithium;

(3) "Secretary," the secretary of the South Dakota Department of Revenue department; and

(4) "Severing," the mining, extracting, or producing of any precious metal.

Section 2. That § 10-39-45.1 be AMENDED:

10-39-45.1. In addition to any other tax imposed in chapter 10-39, there is imposed a tax of ten percent of the net profits from the sale of precious metals gold and silver severed in this state.

In addition to any other tax imposed in chapter 10-39, there is imposed a tax of five percent of the net profits from the sale of lithium severed in this state.