Printer FriendlyHB 1116 authorize municipalities to impose an additional sales and use...
State of South Dakota
LEGISLATIVE ASSEMBLY, 2016
HOUSE BILL NO. 1116
Introduced by: Representatives Munsterman, Greenfield (Lana), Hunt, Kirschman,
Schoenfish, Verchio, Willadsen, and Wollmann and Senators Fiegen, Brown,
Greenfield (Brock), Tidemann, and Tieszen
FOR AN ACT ENTITLED, An Act to authorize municipalities to impose an additional sales
and use tax for a limited period of time for a specified use.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 10-52 be amended by adding a NEW SECTION to read:
In addition to the tax imposed by § 10-52-2, any incorporated municipality may impose an
additional non-ad valorem tax in accordance with the provisions of this chapter, except upon
fuel used for motor vehicles, by ordinance enacted by its local governing board. However, no
tax may be levied on the sale, use, storage, and consumption of items taxed pursuant to the
provisions of chapters 10-45 and 10-46, unless the tax conforms in all respects to the state tax
on such items with the exception of the rate, and the rate levied pursuant to this section does not
exceed one percent. The governing board shall specify in the ordinance the proposed use for the
tax. The use specified in the ordinance shall be for capital expenditures or refunds not provided
for under the existing sources of revenue or budget. The term, capital expenditures, includes
land acquisition, professional fees, construction costs, and other fixed assets for the project,
facility, municipal utilities, streets, or structure. A portion of the tax revenue collected pursuant
to this section may be refunded to the citizens of the municipality pursuant to a methodology
specified in the ordinance.
The governing board shall specify in the ordinance the year or number of years the tax will
be applied and the date the tax will end. If sufficient tax revenue is collected or projected to be
collected to pay for the capital expenditures before the end date specified in the ordinance, the
tax shall be repealed at a date in accordance with the provisions of § 10-52-9. No tax levied
pursuant to this section may be extended or renewed, unless the governing body adopts a new
ordinance and receives approval from the voters.
Any ordinance adopted pursuant to this section shall be referred to a vote of the people for
its approval or disapproval.
Section 2. That § 10-52-2.10 be amended to read:
10-52-2.10. Any incorporated municipality imposing a non-ad valorem tax in accordance
§ 10-52-2 this chapter
may issue municipal non-ad valorem tax revenue bonds pursuant
to this section and chapter 6-8B in anticipation of the collection of the taxes. The bonds shall
be payable solely from the collections of the taxes imposed by the municipality under
, as determined by the governing body. The governing body shall, in the resolution
or ordinance authorizing the bonds, agree that it will continue to impose and collect the taxes
so long as the bonds are outstanding. The governing body shall also pledge so much of the
collections of the taxes as may be necessary to pay the principal premium and interest on the
bonds and to maintain any debt service reserve established for the bonds. For bonds issued
January 1, 2004, the proceeds of the bonds may be used for land acquisition, the
funding of public ambulances and medical emergency response vehicles, public hospitals or
nonprofit hospitals with fifty or fewer licensed beds,
and other public health care facilities or
nonprofit health care facilities with fifty or fewer licensed beds, capital asset acquisition and
capital improvements, to establish a debt service reserve fund for the bonds and to pay not more
than one year's capitalized interest on the bonds.
No election is required to authorize the issuance of municipal non-ad valorem tax revenue
bonds. The bonds shall be issued and sold as provided in chapter 6-8B.