FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the refunds for new or expanded agricultural facilities and the refunds for new or expanded business facilities, to repeal the contractors' excise tax on new or expanded power production facilities, and to make certain transfers to the revolving economic development and initiative fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 10-45B-2 be amended to read as follows:
    10-45B-2. Any person As provided in this chapter, any person holding a permit issued pursuant to § 10-45B-6 may apply for and obtain a refund or credit for contractors' excise taxes imposed and paid under the provisions of chapter 10-46A for the construction of a new agricultural processing facility and for sales or use taxes imposed and paid by such person under the provisions of chapters 10-45 and 10-46 for the purchase or use of agricultural processing equipment.
    Section 2. That § 10-45B-4 be repealed.
    10-45B-4. The refund of taxes for a new agricultural processing facility pertains only to

project costs incurred and paid after April 1, 1997, and within thirty-six months of the construction date as stated on the application required by § 10-45B-6. No refund may be made unless:

            (2)    The person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.
    Section 3. That § 10-45B-4.1 be repealed.
    10-45B-4.1. The refund of taxes pursuant to § 10-45B-2.1 pertains only to project costs incurred and paid after February 1, 2005, up to and including thirty-six months from the construction date if the project costs are sixty million dollars or less and after February 1, 2005, up to and including seventy-two months from the construction date if the project costs are more than sixty million dollars. There is no refund if the person applying for the refund does not obtain a permit from the secretary as set forth in § 10-45B-6.

    Upon a showing of good cause, the time limits prescribed by this section may be extended by the secretary for a period not to exceed twenty-four months.
    Section 4. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    The refund of taxes pursuant to §§ 10-45B-2 and 10-45B-2.1 pertains only to project costs incurred and paid after January 1, 2008, up to and including thirty-six months from the construction date. No refund may be paid unless the person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.
    Section 5. That § 10-45B-5 be repealed.
    10-45B-5. If the project cost for a new agricultural processing facility exceeds four million five hundred thousand dollars, the refund shall be one hundred percent of the taxes attributed

to the project cost.
    Section 6. That § 10-45B-5.1 be repealed.
    10-45B-5.1. The amount of the tax refund for a new business facility shall be a percentage of the taxes paid, as follows:

            (7)    For project costs of six hundred million dollars and greater there shall be a refund of ninety percent of the taxes paid.
    Section 7. That § 10-45B-6.1 be repealed.
    10-45B-6.1. Any person issued a permit pursuant to this chapter prior to March 31, 1997, may continue to submit claims for the project.
    Section 8. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    Notwithstanding any provision of chapter 10-45B or this Act, this section controls the amount of refunds payable under chapter 10-45B for any new agricultural processing facility

or new business facility that has a construction date on or after January 1, 2010. For project cost incurred and paid from January 1, 2010, to December 31, 2012, inclusive, the amount of the refund shall be determined by applying the provisions of chapter 10-45B in effect on July 1, 2010. The amount of the tax refund for a new agricultural processing facility or new business facility shall be a percentage of the taxes paid, as follows:

            (1)    For project costs of less than ten million dollars, there shall be no refund;

            (2)    For project costs of ten or more million dollars but less than four hundred million dollars, there shall be a refund of fifty percent of the taxes paid; and

            (3)    For projects costs of four hundred million or more dollars, there shall be no refund.

    No tax refund may be given for any project cost incurred and paid on or after January 1, 2013.
    Section 9. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    The provisions of chapter 10-45B in effect prior to January 1, 2010, apply to any project where the construction date was before January 1, 2010.
    Section 10. That § 10-45B-8 be amended to read as follows:
    10-45B-8. Any person issued a permit pursuant to this chapter shall submit a claim for refund to the department no more frequently than on or before the last day of each month and no less frequently than on or before the last day of each month following each calendar quarter. The secretary shall determine and pay the amount of the tax refund within ninety days of receipt of the claim for refund. Ninety-five percent of the amount of refund shall be paid to the claimant in accordance with §§ 10-59-22 and 10-59-23, and five percent shall be withheld by the department. No interest may be paid on the refund amount. If electronic funds transfer is available to the secretary, the secretary shall pay the refund by electronic funds transfer if

requested by the claimant. The secretary shall pay the refund by electronic funds transfer.
    Section 11. That § 10-45B-8.1 be repealed.
    10-45B-8.1. No claim for refund pursuant to this chapter may be considered by the department if the claim for refund is received after the following applicable time period:

            (4)    Twelve months after the extended time period of § 10-45B-4.1 for projects that have obtained a time limit extension from the secretary.
Moreover, any such claim is barred from any future refund eligibility.
    Section 12. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    No claim for refund pursuant to this chapter may be considered by the department if the claim for refund is received twelve months after the thirty-six month time period of section 4 of this Act. Moreover, any such claim is barred from any future refund eligibility.
    Section 13. That § 10-45B-8.2 be repealed.
    10-45B-8.2. No document or record in support of any claim for refund may be considered by the department if the documents or records in support of any claim for refund are received after the following applicable time period:

    However, if the department requests any additional document or record from the project owner after a review of the claim for refund, and the request is made after the applicable time period provided by this section has expired, the project owner has sixty days to provide the requested document or record. No document or record received after this sixty-day period may be considered by the department. Moreover, any such document or record is barred from any future consideration.
    Section 14. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    No document or record in support of any claim for refund may be considered by the department if the document or record in support of any claim for refund is received twelve months after the thirty-six month time period of section 4 of this Act. Moreover, any such document or record is barred from any future consideration.

    However, if the department requests any additional document or record from the project owner after a review of the claim for refund, and the request is made after the applicable time period provided by this section has expired, the project owner has sixty days to provide the requested document or record. No document or record received after this sixty-day period may be considered by the department. Moreover, any such document or record is barred from any future consideration.
    Section 15. That § 10-45B-8.3 be repealed.

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    10-45B-8.3. The provisions of §§ 10-45B-8.1 and 10-45B-8.2 apply to refunds for projects only if the permit was applied for after June 30, 2009.
    Section 16. That § 10-45B-9 be amended to read as follows:
    10-45B-9. The amounts withheld by the department in accordance with § 10-45B-8 shall be retained until the project has been completed and the claimant has met all the conditions of § 10-45B-4 or 10-45B-4.1 section 4 of this Act, at which time all sums retained shall be paid to claimant.
    Section 17. That chapter 10-46C be repealed.
    Section 18. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    The department shall transfer to the revolving economic development and initiative fund established by § 1-16G-3 an amount equal to ten percent per fiscal year of the sales, use, and contractors' excise taxes paid on projects receiving a refund under section 8 of this Act. The total amount transferred pursuant to this section per fiscal year may not exceed ten million dollars.