The bill amends the existing law regarding the distribution of revenues from the precious metals severance tax in South Dakota. It specifies that all taxes, interest, and penalties collected by the secretary of revenue must be distributed according to new guidelines. For individuals severing precious metals who were in business prior to January 1, 1981, all revenues will be credited to the general fund. For those permitted after this date, eighty percent of the revenues will also go to the general fund, while the remaining twenty percent will be remitted to the county treasurer where the severance occurred. Additionally, once a county receives a total of three million dollars from a specific taxpayer, all future revenues from that taxpayer will be directed to the general fund.

The bill also clarifies that any revenues from the severance of precious metals on lands owned or controlled by the state must be deposited into the common school permanent fund. Furthermore, it ensures that mergers, consolidations, or acquisitions of companies subject to this tax will not affect the revenue share due to the county from the acquired entity. This legislative change aims to provide a more structured approach to the distribution of severance tax revenues while ensuring that counties receive their fair share.

Statutes affected:
Introduced, 01/21/2025: 10-39-54