State of South Dakota
LEGISLATIVE ASSEMBLY, 2013
SENATE BILL NO. 51
Introduced by: The Committee on Appropriations at the request of the Department of
FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the application of the
collection allowance credit for collecting the sales tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-45-27.2 be amended to read as follows:
10-45-27.2. Any person required to file a return and remit the tax imposed by chapter 10-45
on a monthly basis and, who holds a license issued pursuant to chapter 10-45, who timely files
the return due, and pays who timely remits the tax due, is allowed, as compensation for the
expense of collecting and paying the tax monthly, a credit equal to one and one-half percent of
the gross amount of the tax due. However, the credit may not exceed seventy dollars per month
If a person is required to file a return and to remit tax more than once within a thirty day
period, the collection allowance credit may not exceed seventy dollars for all returns filed and
all remittances made within the thirty day period.
The collection allowance credit authorized by this section only applies to taxes reported on
the sales and use tax return, including the taxes imposed by chapters 10-45, 10-45D, 10-46, 10-
46E, 10-52, 10-52A, 10-58, and 10-33A, and §§ 32-5B-20 and 10-62-2.
The collection allowance credit authorized by this section shall be granted for any return to
be filed and for any tax to be remitted after January 1, 2014.
After January 1, 2015, the collection allowance credit authorized by this section shall only
be granted to a person who timely files the return due by electronic means and who timely
remits the tax due by electronic means.
For any tax collected by the department on behalf of another entity, upon which the
collection allowance credit is calculated, the entity shall share in the payment of the collection
No person that has selected a certified service provider as its agent as set forth in § 10-45C-1
is entitled to the collection allowance credit authorized by this section if the certified service
provider receives a monetary allowance as provided by the Streamlined Sales and Use Tax
Agreement authorized by chapter 10-45C for performing the retailer's sales and use tax
functions in this state.
No collection allowance credit authorized by this section may be granted to any person who
has outstanding tax returns due to the department or who has outstanding tax remittances due
to the department.
Section 2. That § 10-45C-14 be repealed.
10-45C-14. There is hereby created in the state treasury the tax relief fund. The revenue
collected pursuant to § 10-45C-15 shall be deposited in the tax relief fund for the purpose of
reducing the rate of taxation or reducing property taxes. The fund shall be invested as provided
by law, and the interest earned shall be credited to the fund. The Legislature may not appropriate
any money from the tax relief fund until the second fiscal year after Congress approves
legislation giving states the authority to require retailers to collect South Dakota's sales and use
Section 3. That § 10-45C-15 be repealed.
10-45C-15. The additional net revenue received by the state from voluntary retail licensees
shall be deposited in the tax relief fund created pursuant to § 10-45C-14. For the purposes of
§ 10-45C-14 and this section, a voluntary retail licensee is any person licensed through the
Streamlined Sales and Use Tax Agreement to remit sales and use tax pursuant to chapters 10-45
and 10-46 who does not otherwise have a legal obligation to remit such taxes.
Section 4. That § 10-45C-16 be repealed.
10-45C-16. When the cumulative total of the net revenue received pursuant to § 10-45C-15
exceeds ten million dollars, a collection allowance established pursuant to § 10-45-27.2 shall
become effective the following July first.
Section 5. That chapter 10-59 be amended by adding thereto a NEW SECTION to read as
For any tax collected by the department on behalf of another entity, the department may
charge the entity an administrative fee for collecting the tax.