The bill proposes an amendment to the existing fuel excise tax rates in South Dakota, specifically increasing the tax on aviation gasoline and jet fuel. Under the new provisions, the tax rate for aviation gasoline will rise from six cents to seven cents per gallon, and the tax rate for jet fuel will increase from four cents to seven cents per gallon. Additionally, the bill clarifies the tax rates for other fuel types, including liquid petroleum gas, compressed natural gas, and liquid natural gas, with their respective rates also being updated.

The amendments include the removal of certain language regarding exemptions for ethyl alcohol, methyl alcohol, biodiesel, and biodiesel blends, while also specifying that these fuels will be taxed as provided in other sections of the law. The bill aims to streamline the tax structure for various fuel types while ensuring that aviation fuels are subject to higher excise taxes, reflecting a shift in policy towards increased taxation in this sector.

Statutes affected:
Introduced, 01/30/2025: 10-47B-4
Senate Taxation Engrossed, 02/19/2025: 10-47B-4