Chapter 162

(Senate Bill 98)

An Act to add an exemption from the calculation of adjusted gross proceeds from gaming.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 42-7B-28.2 be AMENDED:

42-7B-28.2. When calculating adjusted gross proceeds for the purpose of applying the tax imposed by §§ 42-7B-28 and 42-7B-28.1:

(1) Free play value provided by the operator may is not be included in the gross proceeds; and

(2) Cash prizes deducted shall be are adjusted to not include an amount equal to ninety percent of the free play value provided by the operator.; and

(3) The federal excise tax on sports wagers imposed by 26 U.S.C. § 4401 (1982) is a deduction from the adjusted gross proceeds.

Signed March 18, 2022