State of South Dakota  
EIGHTY-EIGHTH SESSION
LEGISLATIVE ASSEMBLY, 2013  

400U0200   SENATE ENGROSSED    NO.  SB 51 -  02/20/2013  

Introduced by:    The Committee on Appropriations at the request of the Department of Revenue
 

        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 return period.
    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.
    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 tax.
    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 follows:

    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.