ENTITLED An Act to clarify language regarding sales and use tax in certain statutes.

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

Section 1. That   10-45-8 be AMENDED:

10-45-8. Except as otherwise provided in this chapter, there is imposed a tax of four and two-tenths percent upon the gross receipts from all sales of tickets or admissions to:

(1) Places of amusement;

(2) Athletic contests; or

(3) Events.

Section 2. That   10-45-9.1 be AMENDED:

10-45-9.1. Gross receipts from the sale of tangible personal property and any product transferred electronically to a person who intends to lease the property to persons in this state and actually does so are exempted from the provisions of this chapter and the tax imposed by it.

Section 3. That   10-45-14.6 be AMENDED:

10-45-14.6. There are specifically exempted from the provisions of this chapter and the computation of the amount of tax imposed by it, the gross receipts from the sale of meals to inpatients of hospitals if the meals are paid for, by law or by contract, by the United States, this state or a political subdivision, including, but not limited to, meals provided to medicare, medicaid, Tricare, Indian health service, or county poor relief patients.

Section 4. That   10-45-113 be AMENDED:

10-45-113. There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts of any person under eighteen years of age with gross receipts totaling less than one thousand dollars in any calendar year from any sale of tangible personal property, any service delivered, or any product or service transferred electronically for use in the state.

Section 5. That   10-45-114 be AMENDED:

10-45-114. There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receiptscoaching services performed for youth or amateur sports when the gross receipts for the coaching services total less than four thousand dollars in any calendar year. For purposes of this section, a youth or amateur sport is any sport in which the participants are aged nineteen or younger and do not receive compensation for participation.

Section 6. That   10-46-74 be AMENDED:

10-46-74. There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts for coaching services performed for youth or amateur sports when the gross receipts for the coaching services total less than four thousand dollars in any calendar year. For purposes of this section, a youth or amateur sport is any sport in which the participants are aged nineteen or younger and do not receive compensation for participation.

Section 7. That   10-45-12.7 be AMENDED:

10-45-12.7. There are hereby specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts for officiating services provided at an amateur sporting event.

Section 8. That   10-45C-1 be AMENDED:

10-45C-1. Terms used in this chapter mean:

(1) "Agreement," the Streamlined Sales and Use Tax Agreement;

(2) "Certified automated system," software certified jointly by the states that are signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction;

(3) "Certified service provider," an agent certified jointly by the states that are signatories to the agreement to perform all of the seller's sales tax functions;

(4) "Person," an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity;

(5) "Sales tax," the tax levied under chapter 10-45;

(6) "Seller," any person making sales, leases, or rentals of tangible personal property, any product transferred electronically, or services;

(7) "State," any state of the United States and the District of Columbia; and

(8) "Use tax," the tax levied under chapter 10-46.

An Act to clarify language regarding sales and use tax in certain statutes.

I certify that the attached Act originated in the: House as Bill No. 1019 Chief Clerk Speaker of the House Attest: Chief Clerk President of the Senate Attest: Secretary of the Senate House Bill No. 1019 File No. ____ Chapter No. ______

Received at this Executive Office this _____ day of _____________, 2024 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2024 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State