This bill proposes the addition of new sections to chapters 10-45 and 10-46 of South Dakota law, which would exempt certain gross receipts from the state sales and use tax. Specifically, the exemptions apply to services rendered by individuals or entities that are owners of a partnership. The bill outlines three categories of exempt services: those provided by a natural person who is an owner of the partnership, those provided by a limited liability company (LLC) with no employees and wholly owned by a natural person, and those provided by a corporation that is also wholly owned by a natural person and has no employees other than its owner.

By implementing these exemptions, the bill aims to alleviate the tax burden on partnerships for services rendered by their owners or closely held entities. This legislative change is intended to support small businesses and encourage entrepreneurship by reducing operational costs associated with sales and use tax on specific services.