The bill proposes the repeal of the alternate realty improvement contractor's excise tax in South Dakota, eliminating the tax on gross receipts from prime contractors and subcontractors involved in realty improvement contracts. This repeal also removes the associated reporting requirements, including the obligation for contractors to file returns and pay taxes monthly, as well as various stipulations regarding tax reporting methods. By repealing these provisions, the bill aims to simplify the tax structure for contractors, thereby reducing their tax burden and the administrative processes previously required.

In addition to the tax repeal, the bill amends existing law to clarify the definition of "project" for tax considerations, including specific facilities while excluding others such as retail buildings and residential housing. It introduces a requirement for excise taxes paid on large water development projects to be deposited into the water and environment fund. The bill also streamlines legal language by deleting references to chapter 10-46B and updating requirements for contractors regarding excise tax licenses and tax refunds for construction-related tangible personal property. These amendments are designed to enhance clarity and efficiency in tax administration while supporting targeted industries and infrastructure development in South Dakota.

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