State of South Dakota
LEGISLATIVE ASSEMBLY, 2012
SENATE BILL NO. 110
Introduced by: Senators Nelson (Tom), Lederman, and Nygaard and Representatives
Turbiville, Gibson, Kirkeby, and Munsterman
FOR AN ACT ENTITLED, An Act to increase the maximum occupational tax that may be
imposed on transient guests for business improvement districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 9-55-7 be amended to read as follows:
9-55-7. Upon receiving a recommendation from the business improvement board, the
governing body may create one or more business improvement districts by adopting a resolution
of intent to establish a district or districts. The resolution shall contain the following
(1) A description of the boundaries of any proposed district;
(2) The time and place of a hearing to be held by the governing body to consider
establishment of a district or districts;
(3) The proposed public facilities and improvements to be made or maintained within
any such district; and
(4) The proposed or estimated costs for improvements, facilities and activities within any
district, and the method by which the revenue shall be raised. If a special assessment
is proposed, the resolution also shall state the proposed method of assessment.
The notice of intent shall recite that the method of raising revenue shall be fair and
equitable. In the use of a general occupation tax, the tax shall be based primarily on the square
footage of the owner's and user's place of business or based on rooms rented by any lodging
establishment to transient guests as defined in § 10-45-7. If the occupational tax is based on
rooms rented by a lodging establishment, the tax shall be imposed on the transient guest and
such tax may not exceed
dollars per occupied room per night. However, no
occupational tax may be imposed on any transient guest who has been offered a room by a
lodging establishment on a complimentary basis and no fee or rent was charged for such room.
In the use of a special assessment, the assessment shall be based upon the special benefit to the
property within the district.