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. The bill also updates the list of exempt services under section 10-45-12.1 by adding various categories, including health, educational, social, agricultural, and several others, while deleting previous exemptions for advertising services. 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 such as gifts or grants. The purpose of this fund is to supplement property tax revenues and provide credits to real property owners, thereby reducing the property taxes levied by local governments. The state treasurer will be responsible for administering this fund.

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