This bill amends South Dakota law to impose a ten percent gross receipts tax on advertising services related to drugs, as defined in existing legislation. It also updates the list of exempt services under section 10-45-12.1 by adding several categories, including health, educational, social, agricultural, forestry, radio and television broadcasting, and others, while removing previous exemptions for advertising services. The bill specifies that the revenue generated from this new tax will be directed to a newly established property tax reduction fund.

Additionally, the bill creates the property tax reduction fund, which will consist of the proceeds from the advertising services tax, along with any other contributions or appropriations made for this purpose. The fund aims to supplement property tax revenues and provide credits to real property owners in South Dakota, thereby reducing the property taxes levied by local governments. The state treasurer is designated to administer this fund.

Statutes affected:
Introduced, 01/30/2025: 10-45-12.1