The bill amends South Dakota's severance taxation laws, specifically sections 10-39-54 and 10-39-54.1, to modify the distribution of revenues collected from severance taxation on new permits for precious metals. For individuals or entities severing precious metals who were permitted on or after January 1, 1981, but before July 1, 2026, the bill stipulates that 80% of the collected revenues will be deposited into the state treasury and credited to the general fund, while 20% will be remitted to the county treasurer where the severance occurs. Once a county receives a total of $1 million from a specific taxpayer, all future revenues from that taxpayer will be directed to the state treasury. For those permitted on or after July 1, 2026, the same distribution applies, ensuring that mergers or acquisitions do not affect the county's share of revenue.

Additionally, the bill clarifies that any revenues from the severance of precious metals on state-owned or controlled lands must be deposited into the common school permanent fund. The secretary of the department is tasked with transferring the county's share of revenue by the end of the month following each reporting period, ensuring timely distribution of funds to local governments.

Statutes affected:
Introduced, 01/18/2026: 10-39-54, 10-39-54.1
Enrolled, 03/05/2026: 10-39-54, 10-39-54.1