State of South Dakota
LEGISLATIVE ASSEMBLY, 2013
HOUSE ENGROSSED NO. SB 51 - 03/05/2013
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.
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
For any tax collected by the department on behalf of another entity, upon which the
collection allowance credit is calculated, the entities shall negotiate in good faith to share in the
payment of the collection allowance credit. The department may implement such allocation of
collection allowance credit directly or through the adjustment of any administrative fee charged
pursuant to section 3 of this Act.
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-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 3. 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.