The bill amends South Dakota's tax collection agreement provisions with Indian tribes, specifically updating Section 10-12A-4. It allows the state department to enter into tax collection agreements with any Indian tribe for the collection of various state taxes, which may also include identical tribal taxes. The list of state taxes that can be included in these agreements encompasses the retail sales and service tax, use tax, contractors' excise tax, alternate contractors' excise tax, cigarette tax, motor vehicle excise tax, fuel excise tax, wholesale tax on tobacco products, amusement device tax, gross receipts tax on visitor-related businesses, and excise tax on farm machinery, attachment units, and irrigation equipment.

Additionally, the bill stipulates that the agreements may allow the department to retain a specified percentage of the gross revenue as an administrative fee. This modification aims to streamline tax collection processes between the state and Indian tribes, ensuring that both parties can effectively manage and benefit from the collection of these taxes.

Statutes affected:
Introduced, 01/29/2026: 10-12A-4
House Taxation Engrossed, 02/05/2026: 10-12A-4
Enrolled, 02/26/2026: 10-12A-4