Refund of sales and use tax and contractor's excise tax
to the movie industry.
Terms used in this Act mean:
The refund of taxes for a production pertains only to project costs incurred and paid
after July 1, 2006, and within thirty-six months of the approval of the application required by this
Act. No refund may be made unless:
Any claim for refund shall be submitted on forms prescribed by the secretary and
shall be supported by such documentation as the secretary may require. The secretary may deny
any claim where the claimant has failed to provide information or documentation requested or
considered necessary by the secretary to determine the validity of the claim.
Any person issued a permit pursuant to this Act shall submit a return to the
department within sixty days after the completion of the project in South Dakota. At the discretion
of the secretary, the person may apply for and obtain a refund more frequently than prescribed. The
secretary shall determine and pay the amount of the tax refund within thirty days of receipt of the
return. Ninety-five percent of the amount of refund shall be paid to the claimant in accordance with
§§ 10-59-22 and 10-59-23, and five percent shall be withheld by the department. No interest may
be paid on the refund amount. If electronic funds transfer is available to the secretary, the secretary
shall pay the refund by electronic funds transfer if requested by the claimant.
The amounts withheld by the department in accordance with this Act shall be
retained until the production has been completed and the claimant has met all the conditions of this
Act, at which time all sums retained shall be paid to the claimant.
If any claim has been fraudulently presented or supported as to any item in the claim,
or if the claimant fails to meet all the conditions of this Act, then the claim may be rejected in its
entirety and all sums previously refunded to the claimant shall constitute a debt to the state and a
lien in favor of the state upon all property and rights to property whether real or personal belonging
to the claimant and may be recovered in an action of debt.
Any person, aggrieved by the denial in whole or in part of a refund claimed under
this Act, may, within thirty days after service of the notice of such denial by the secretary, demand
a hearing, upon notice, before the secretary. The hearing shall be conducted pursuant to chapter
Any person, aggrieved by a decision of the secretary under this Act, may, within
thirty days of receipt of written notice of the secretary's decision, make written application to the
secretary for a hearing to be conducted pursuant to chapter 1-26. Hearings are to be conducted and
appeals taken pursuant to the provisions of chapters 1-26 and 1-26D. A copy of the hearing
examiner's proposed decision, findings of fact, and conclusions of law shall be served on all parties
when furnished to the secretary. If the secretary, pursuant to chapter 1-26D, accepts the final
decision of the hearing examiner, no appeal from a final decision of the secretary upon any
additional tax to be paid may be taken unless any amount ordered paid by the secretary is paid or
a bond filed to insure payment of the amount. However, if the final decision of the secretary,
pursuant to chapter 1-26D, rejects or modifies the decision of the hearing examiner regarding the
amount due, an appeal may be taken without payment of the amount ordered to be paid and
without filing of a bond. If the secretary's decision is affirmed by the circuit court, no appeal may
be taken unless any amount ordered to be paid by the secretary is paid or a bond is filed to insure
payment of such amount.
Any amount refunded pursuant to this Act for a production that is not completed
within the time frames prescribed by this Act, including any extensions granted by the secretary,
shall be returned to the state without interest. Any refunded amounts not returned pursuant to this
section and all sums previously refunded to the claimant constitute a debt to the state and a lien
in favor of the state upon all property and rights to property whether real or personal belonging to
the claimant and may be recovered in an action of debt.
This Act is repealed on June 30, 2011.