State of South Dakota
LEGISLATIVE ASSEMBLY, 2018
||HOUSE BILL NO. 1288 |
Introduced by: Representatives Rasmussen, Lesmeister, Peterson (Sue), and Wiese and Senator Kolbeck
FOR AN ACT ENTITLED, An Act to provide contractors' excise, sales, and use tax refunds for the filming of certain motion pictures, documentaries, television advertisements, or television films.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That the code be amended by adding a NEW SECTION to read:
Terms used in this Act mean:
(1) "Department," the Department of Revenue;
(2) "Filming date," the first date a person begins the production in this state;
(3) "Person," any person who is engaged in the business of producing nationally or regionally distributed productions;
(4) "Production," a nationally or regionally distributed motion picture, documentary, single television advertisement, or television film made in this state, in whole or in part, for theatrical, television, video, internet, or other viewing. The term does not include the production of television coverage of news and athletic events or any production that contains any obscene material or performance as described in
(5) "Project cost," the amount paid in money for a production. The term does not include expenditures made for marketing or advertising a production, other than a television advertisement. Nor does the term include expenditures made for goods or services obtained out of state for which no sales and use taxes were paid pursuant to chapters 10-45 and 10-46; and
(6) "Secretary," the secretary of the Department of Revenue.
Section 2. That the code be amended by adding a NEW SECTION to read:
As provided in this Act, any person holding a permit issued pursuant to this Act may apply for and obtain a refund or credit for sales or use tax imposed and paid by the person under the provisions of chapter 10-45 or 10-46 and contractors' excise taxes imposed and paid under the provisions of chapter 10-46A or 10-46B on the project costs.
Section 3. That the code be amended by adding a NEW SECTION to read:
The refund of taxes for a production pertains only to project costs incurred and paid after July 1, 2018, and within thirty-six months of the approval of the application required by this Act. No refund may be made unless:
(1) The project costs that are incurred in this state exceed the sum of fifty thousand dollars in taxable costs; and
(2) The person applying for the refund obtains a permit from the secretary as set forth in this Act.
Section 4. That the code be amended by adding a NEW SECTION to read:
If the project cost for a production is two hundred thousand dollars or more in taxable costs, the refund shall be one hundred percent of the taxes attributed to the taxable project costs.
Project costs between the sum of fifty thousand dollars and one hundred ninety-nine
thousand nine hundred ninety-nine dollars are eligible for a seventy-five percent refund if all other requirements of this Act are met.
Section 5. That the code be amended by adding a NEW SECTION to read:
Any person desiring to claim a refund pursuant to this Act shall apply for a permit from the secretary at least thirty days before the start date of the production. The application for a permit shall be submitted on a form prescribed by the secretary. A separate application shall be made and submitted for each production. Upon approval of the application, the secretary shall issue a permit entitling the applicant to submit refund claims as provided by this Act. The permit or refund claims are not assignable or transferable except as collateral or security pursuant to chapter 57A-9.
Section 6. That the code be amended by adding a NEW SECTION to read:
Any claim for refund shall be submitted on forms prescribed by the secretary and shall be supported by any documentation the secretary may require. The secretary may deny any claim if the claimant has failed to provide information or documentation requested or considered necessary by the secretary to determine the validity of the claim.
Section 7. That the code be amended by adding a NEW SECTION to read:
Any person issued a permit pursuant to this Act shall submit a return to the department within ninety days after the completion of the project in South Dakota. The secretary shall determine and pay the amount of the tax refund within sixty days of receipt of the return. If electronic funds transfer is available to the secretary, the secretary shall pay the refund by electronic funds transfer if requested by the claimant.
Section 8. That the code be amended by adding a NEW SECTION to read:
If any claim has been fraudulently presented or supported as to any item in the claim, or if the claimant fails to meet all the conditions of this Act, the claim may be rejected in its entirety.
Section 9. That the code be amended by adding a NEW SECTION to read:
Any person aggrieved by the denial in whole or in part of a refund claimed under this Act, may, within thirty days after service of the notice of the denial by the secretary, request a hearing, upon notice, before the secretary. The hearing shall be conducted pursuant to chapter 1-26.
Section 10. That the code be amended by adding a NEW SECTION to read:
Any person, aggrieved by a decision of the secretary under this Act, may, within thirty days of receipt of written notice of the secretary's decision, make written application to the secretary for a hearing to be conducted pursuant to chapter 1-26. Any hearing is to be conducted and any appeal taken pursuant to the provisions of chapters 1-26 and 1-26D. A copy of the hearing examiner's proposed decision, findings of fact, and conclusions of law shall be served on all parties when furnished to the secretary.