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 being updated to twenty cents, ten cents, and fourteen cents per gallon.

The amendments also include the removal of certain language regarding exemptions for ethyl alcohol, methyl alcohol, biodiesel, and biodiesel blends, while maintaining the structure for special fuel and motor fuel taxation. The bill aims to ensure that the tax framework is updated to reflect the new rates and clarify the conditions under which certain fuel types are taxed, thereby enhancing the state's revenue from aviation-related fuel consumption.

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