FOR AN ACT ENTITLED, An Act to reduce the rate for the contractor's excise tax over a period of time and to repeal the contractor's excise tax in three years.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 10-46A-1 be amended to read as follows:
    10-46A-1. There is imposed an excise tax upon the gross receipts of all prime contractors engaged in realty improvement contracts, at the rate of two one and one-half percent.
    Section 2. That § 10-46B-1 be amended to read as follows:
    10-46B-1. There is imposed an excise tax upon the gross receipts of all prime contractors and subcontractors engaged in realty improvement contracts for those persons subject to tax under chapter 10-28, 10-33, 10-34, 10-35, 10-36, or 10-36A or any municipal telephone company subject to chapter 9-41 or any rural water system, at the rate of two one and one-half percent. Notwithstanding the provisions of this section, the tax imposed by this chapter does not apply to the construction of a power generation facility as defined by § 10-45B-1.
    Section 3. That § 10-46A-1 be amended to read as follows:
    10-46A-1. There is imposed an excise tax upon the gross receipts of all prime contractors

engaged in realty improvement contracts, at the rate of two one percent.
    Section 4. That § 10-46B-1 be amended to read as follows:
    10-46B-1. There is imposed an excise tax upon the gross receipts of all prime contractors and subcontractors engaged in realty improvement contracts for those persons subject to tax under chapter 10-28, 10-33, 10-34, 10-35, 10-36, or 10-36A or any municipal telephone company subject to chapter 9-41 or any rural water system, at the rate of two one percent. Notwithstanding the provisions of this section, the tax imposed by this chapter does not apply to the construction of a power generation facility as defined by § 10-45B-1.
    Section 5. The provisions of sections 3 and 4 of this Act are effective on July 1, 2014.
    Section 6. That § 10-46A-1 be amended to read as follows:
    10-46A-1. There is imposed an excise tax upon the gross receipts of all prime contractors engaged in realty improvement contracts, at the rate of two one-half percent.
    Section 7. That § 10-46B-1 be amended to read as follows:
    10-46B-1. There is imposed an excise tax upon the gross receipts of all prime contractors and subcontractors engaged in realty improvement contracts for those persons subject to tax under chapter 10-28, 10-33, 10-34, 10-35, 10-36, or 10-36A or any municipal telephone company subject to chapter 9-41 or any rural water system, at the rate of two one-half percent. Notwithstanding the provisions of this section, the tax imposed by this chapter does not apply to the construction of a power generation facility as defined by § 10-45B-1.
    Section 8. The provisions of sections 6 and 7of this Act are effective on July 1, 2015.
    Section 9. That §§ 10-46A-1 to 1046A-19, inclusive, be repealed.
    Section 10. That §§ 10-46B-1 to 1046B-18, inclusive, be repealed.
    Section 11. The provisions of sections 9 and 10 of this Act are effective on July 1, 2016.