This bill proposes to amend South Dakota tax law by excluding guaranteed payments made to partners from the definition of gross receipts and exempting these payments from the state use tax. Specifically, it introduces new legal language that clarifies that gross receipts do not include any guaranteed payment to a partner who is a natural person, a corporation with only owner-employees, or a limited liability company owned by a natural person with no employees.

Additionally, the bill establishes that gross receipts from guaranteed payments to the specified types of partners are exempt from the provisions of the state tax law. This change aims to provide tax relief for certain business structures and their partners, thereby potentially encouraging business growth and investment in the state.