AN ACT

        ENTITLED, An Act to  increase the amount of funding for conservation and value-added agriculture purposes from certain unclaimed motor fuel tax refunds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That § 10-47B-154 be amended to read as follows:
     10-47B-154.   The Legislature finds that not all motor fuel taxes which qualify for the nonhighway agricultural motor fuel tax refund are, in fact, refunded under the procedure set forth in this chapter. The Legislature further finds that a certain amount of these unclaimed tax refunds from the sale of motor fuel for nonhighway agricultural uses should be used for agricultural purposes in a manner which benefits both agriculture and the citizens of the state by preserving its natural resources. Therefore, the Legislature declares that an amount equal to one-half of the gallons of the annual South Dakota agricultural gasoline and gasoline blend sales as determined in section 2 of this Act is used for nonhighway agricultural purposes and eligible for refund of the motor fuel tax. The amount of eligible tax refunds less the claimed refunds authorized by § 10-47B-119, as determined in section 2 of this Act represents the amount of unclaimed tax refunds from the sale of motor fuel tax for nonhighway agricultural uses. The Legislature further declares that it is the policy of this state to use these funds, representing the unclaimed tax refunds from the sale of motor fuel for nonhighway agricultural purposes, to implement the Coordinated Soil and Water Conservation Program. Notwithstanding any other provisions of this Act, the total amount of unclaimed motor fuel tax refunds to be transferred to the coordinated soil and water conservation fund, may not exceed two million five hundred thousand dollars in any single fiscal year.
     Section  2.  For purposes of section 1 of this Act, the amount of unclaimed tax refunds from the sale of motor fuel for nonhighway agricultural purposes in any fiscal year is determined as provided in this section. The gasoline and gasoline blend sales in South Dakota in accordance with section 1

of this Act, is twelve percent of the gasoline and gasoline blend sales by the plains states as reported in the USDA-NASS Farm Production Expenditures Annual Summary Report. The number of gallons of gasoline and gasoline blend used in South Dakota for agricultural purposes is the amount of money spent on gasoline and gasoline blend in South Dakota for agricultural purposes divided by the average price of gasoline as published by the Energy Information Administration. The number of gallons of gasoline and gasoline blend purchased for nonhighway agricultural purposes is fifty percent of the gallons purchased in South Dakota in accordance with section 1 of this Act. That amount multiplied by the tax rate pursuant to §  10-47B-4 is the amount of tax that is eligible to be refunded by the Department of Revenue and Regulation. The amount of money eligible for refunds less the actual amount of refunds paid by the Department of Revenue and Regulation is the total amount of unclaimed refunds.
     Section  3.  That § 10-47B-149 be amended to read as follows:
     10-47B-149.   At the beginning of each month, the secretary shall make adjustments to the motor fuel tax fund balance in the following manner:

             (1)      Each July transfer an amount to the snowmobile trails' fund equal to the product of multiplying the number of licensed snowmobiles as of July first, times one hundred twenty-five gallons, times the rate of tax provided for motor fuel under this chapter;
             (2)      Transfer to the motor fuel tax refund fund an amount to pay motor fuel tax refunds for the current month;
             (3)      Transfer to the motor fuel tax administration account two percent of the deposits made to the motor fuel tax fund during the preceding month to cover the expenses incurred in administering all motor fuel and special fuel tax laws of this state. On or about August first of each year, the preceding year's remaining motor fuel tax administration account balance, less an amount to provide cash flow within the account, shall be transferred to

the state highway fund. The remaining balance is to be calculated by subtracting from the total of monthly deposits, the amount of corresponding expenses. The expense of administering the chapters relating to motor and special fuel taxation shall be paid out of appropriations made by the Legislature;

             (4)      Each September transfer an amount to the coordinated soil and water conservation fund equal to the amount calculated pursuant to section 2 of this Act;
             (5)      Each July transfer to the parks and recreation fund an amount equal to the product of multiplying the number of licensed motorized boats as of the previous December thirty-first, times one hundred forty gallons, times the rate of tax provided for motor fuels under this chapter;
             (6)      Transfer to the member jurisdictions taxes collected under the provisions of the international fuel tax agreement; and
             (7)      Transfer the remaining cash balance to the state highway fund.
     Section  4.  That § 38-7-26 be amended to read as follows:
     38-7-26.   The coordinated soil and water conservation fund shall consist of money transferred from the unclaimed tax refunds from the sale of motor fuel for nonhighway agricultural uses in the motor fuel tax fund as provided in §  10-47B-149, and all public and private sources including legislative appropriations or federal grants.
     Section  5.  That § 38-7-27 be amended to read as follows:
     38-7-27.   The Coordinated Soil and Water Conservation Program is hereby established. Under this program, the State Conservation Commission may grant or loan funds from the coordinated soil and water conservation fund. The Conservation Commission shall promulgate rules pursuant to chapter 1-26 for administration, terms, and conditions for the disbursement of grants or loans and to establish criteria for the selection of projects to receive grants or loans through the Coordinated

Soil and Water Conservation Program.


An Act to increase the amount of funding for conservation and value-added agriculture purposes from certain unclaimed motor fuel tax refunds.

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I certify that the attached Act originated in the

HOUSE as Bill No. 1131

____________________________
Chief Clerk
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____________________________
Speaker of the House

Attest:

____________________________
Chief Clerk

____________________________
President of the Senate

Attest:

____________________________
Secretary of the Senate

House Bill No. 1131
File No. ____
Chapter No. ______  
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Received at this Executive Office this _____ day of _____________ ,

20____ at ____________ M.


By _________________________
for the Governor
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The attached Act is hereby approved this ________ day of ______________ , A.D., 20___

____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State

Filed ____________ , 20___
at _________ o'clock __ M.

____________________________
Secretary of State

By _________________________
Asst. Secretary of State