The bill proposes the repeal of the alternate realty improvement contractor's excise tax, which eliminates the tax on the gross receipts of prime contractors and subcontractors involved in realty improvement contracts. This repeal includes the removal of various sections that detail the tax's application, reporting requirements, and penalties for non-compliance. Additionally, the bill amends existing language to clarify that the contractor's excise tax is now only applicable under chapter 10-46A, removing references to chapter 10-46B. This change aims to simplify the tax obligations for contractors in South Dakota and reduce their regulatory burden.

Furthermore, the bill clarifies the definition of "project" to include specific facilities such as laboratory and testing facilities, manufacturing facilities, and wind energy facilities, while excluding buildings primarily used for retail sales, residential housing, healthcare services, and transportation of natural resources. It introduces a new requirement that any contractor's excise taxes paid for water development projects exceeding twenty million dollars be deposited into the water and environment fund. The bill also streamlines the tax code by deleting references to chapter 10-46B, specifies that contractors must display their excise tax license number with building permits, and establishes procedures for electronic filing and remittance of taxes, enhancing clarity and efficiency in tax administration.

Statutes affected:
Introduced, 01/29/2025: 10-46B-1, 10-46B-1.1, 10-46B-1.2, 10-46B-1.3, 10-46B-1.6, 10-46B-2, 10-46B-3, 10-46B-4, 10-46B-5, 10-46B-6, 10-46B-7, 10-46B-9, 10-46B-10, 10-46B-10.1, 10-46B-11, 10-46B-11.1, 10-46B-12, 10-46B-13, 10-46B-14, 10-46B-15, 10-46B-16, 10-46B-16.1, 10-46B-17, 10-46B-18, 1-16G-56, 5-18B-17, 5-21-3, 10-45-1.14, 10-46-5, 10-46A-12.1, 10-52-17, 10-52A-1.1, 10-56-1, 10-59-1, 10-59-32, 10-59-32.1, 10-59-40, 10-59-44, 10-59-46, 10-61-1, 49-34A-82, 49-34A-83, 10-46A-1.2, 10-46A-12.2