The bill amends South Dakota's severance taxation laws, specifically regarding the distribution of revenues collected from severance taxes on precious metals. It establishes that all taxes, interest, and penalties collected must be distributed in a specified manner. For businesses that were severing precious metals before January 1, 1981, all revenues must be deposited into the state treasury and credited to the general fund. For those permitted between January 1, 1981, and July 1, 2026, eighty percent of the revenues must also be deposited in the state treasury, while the remaining twenty percent is to be remitted to the county treasurer where the severance occurs. Once a county receives a total of one million dollars from a specific taxpayer, all future revenues from that taxpayer will be directed to the state treasury. The bill also clarifies that mergers or acquisitions do not affect the revenue share due to the county.

Additionally, for businesses permitted after July 1, 2026, the same revenue distribution rules apply as for those permitted between 1981 and 2026. The bill further stipulates that any revenues from severance activities on lands owned or controlled by the state must be deposited into the common school permanent fund. The secretary of the department is tasked with transferring the revenue payable to counties by the end of the month following each reporting period, ensuring timely distribution of funds.

Statutes affected:
Introduced, 01/18/2026: 10-39-54, 10-39-54.1