23.507.16 98th Legislative Session 1137
HOUSE APPROPRIATIONS ENGROSSED
Introduced by: Representative Karr
An Act to reduce certain gross receipts tax rates and a use tax rate, and to repeal a conditional reduction of certain gross receipts tax rates.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 10-45-2 be AMENDED:
10-45-2.
There is hereby
imposed a tax upon the privilege of engaging in business as a
retailer, a tax of four
and one-half
and
two-tenths percent
upon the gross receipts of all sales of tangible personal property
consisting of goods, wares, or merchandise, except as otherwise
provided in this chapter, sold at retail in the
State of South Dakota
state to
consumers or users.
Section 2. That § 10-45-5 be AMENDED:
10-45-5.
There is imposed a
tax at the rate of four
and one-half
and
two-tenths percent
upon the gross receipts of any person from engaging or continuing in
any of the following businesses or services in this state:
abstracters; accountants; ancillary services; architects; barbers;
beauty shops; bill collection services; blacksmith shops; car
washing; dry cleaning; dyeing; exterminators; garage and service
stations; garment alteration; cleaning and pressing; janitorial
services and supplies; specialty cleaners; laundry; linen and towel
supply; membership or entrance fees for the use of a facility or for
the right to purchase tangible personal property, any product
transferred electronically, or services; photography; photo
developing and enlarging; tire recapping; welding and all repair
services, except repair services for farm machinery, attachment
units, and irrigation equipment used exclusively for agricultural
purposes; cable television; and rentals of tangible personal property
except leases of tangible personal property between one telephone
company and another telephone company, motor vehicles as defined
pursuant to § 32-5-1
leased under a single contract for more than twenty-eight days,
and mobile homes. However, the specific enumeration of businesses and
professions made in this section does not, in any way, limit the
scope and effect of the provisions of § 10-45-4.
Section 3. That § 10-45-5.3 be AMENDED:
10-45-5.3.
There is imposed,
at the rate of four
and one-half
and
two-tenths percent,
an excise tax on the gross receipts of any person engaging in oil and
gas field services (group no. 138) as enumerated in the Standard
Industrial Classification Manual, 1987, as prepared by the
Statistical Policy Division of the Office of Management and Budget,
Office of the President.
Section 4. That § 10-45-6 be AMENDED:
10-45-6.
There is hereby
imposed a tax of four
and one-half
and
two-tenths percent
upon the gross receipts from sales, furnishing, or service of gas,
electricity, and water, including the gross receipts from such sales
by any municipal corporation furnishing gas, and electricity, to the
public in its proprietary capacity, except as otherwise provided in
this chapter, when sold at retail in the State of South Dakota to
consumers or users.
Section 5. That § 10-45-6.1 be AMENDED:
10-45-6.1.
Except as provided
in § 10-45-6.2,
there is hereby imposed a tax of four
and one-half
and
two-tenths percent
upon the gross receipts from providing any intrastate, interstate, or
international telecommunications service that originates or
terminates in this state and that is billed or charged to a service
address in this state, or that both originates and terminates in this
state. However, the tax imposed by this section does not apply to:
(1) Any eight hundred or eight
hundred
-type
service,
unless the service both originates and terminates in this state;
(2) Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or
(3) Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.
If a call center uses an exemption certificate to purchase services not meeting the criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.
Section 6. That § 10-45-6.2 be AMENDED:
10-45-6.2.
There is hereby
imposed a tax of four
and one-half
and
two-tenths percent
upon the gross receipts of mobile telecommunications services, as
defined in 4 U.S.C. § 124(7) as of January 1, 2002, that
originate and terminate in the same state and are billed to a
customer with a place of primary use in this state or are deemed to
have originated or been received in this state and to be billed or
charged to a service address in this state if the customer's place of
primary use is located in this state regardless of where the service
actually originates or terminates. Notwithstanding any other
provision of this chapter and for purposes of the tax imposed by this
section, the tax imposed upon mobile telecommunication services
shall
must be
administered in accordance with 4 U.S.C. §§ 116-126,
as in effect on July 28, 2000.
Section 7. That § 10-45-8 be AMENDED:
10-45-8.
There is imposed a
tax of four
and one-half
and
two-tenths percent
upon the gross receipts from all sales of tickets or admissions to
places of amusement and athletic contests or events, except as
otherwise provided in this chapter.
Section 8. That § 10-45-71 be AMENDED:
10-45-71.
There is imposed a
tax of four
and one-half
and
two-tenths percent
on the gross receipts from the transportation of passengers. The tax
imposed by this section
shall apply
applies to any
transportation of passengers if the passenger boards and exits the
mode of transportation within this state.
Section 9. That § 10-46-2.1 be AMENDED:
10-46-2.1.
For the privilege
of using services in South Dakota, except those types of services
exempted by § 10-46-17.3,
there is imposed on the person using the service an excise tax equal
to four and
one-half and
two-tenths percent
of the value of the services at the time they are rendered. However,
this tax may not be imposed on any service rendered by a related
corporation,
as defined in subdivision 10-43-1(11),
for use by a financial institution,
as defined in subdivision 10-43-1(4);
or on any service rendered by a financial institution,
as defined in subdivision 10-43-1(4),
for use by a related corporation as defined in subdivision
10-43-1(11).
For the purposes of this section, the term,
related corporation,
includes a corporation,
which together with the financial institution,
is part of a controlled group of corporations,
as defined in 26 U.S.C. § 1563 as in effect on January 1,
1989, except that the eighty percent ownership requirements set forth
in 26 U.S.C. § 563(a)(2)(A) for a brother-sister controlled
group are reduced to fifty-one percent. For the purpose of this
chapter, services rendered by an employee for the use of
his
the employer
are not taxable.
Section 10. That § 10-46-2.2 be AMENDED:
10-46-2.2.
An excise tax is
imposed upon the privilege of the use of rented tangible personal
property and any product transferred electronically in this state at
the rate of four and
one-half and
two-tenths percent
of the rental payments upon the property.
Section 11. That § 10-46-58 be AMENDED:
10-46-58.
There is imposed a
tax of four and
one-half and
two-tenths percent
on the privilege of the use of any transportation of passengers. The
tax imposed by this section
shall apply
applies to any
transportation of passengers if the passenger boards and exits the
mode of transportation within this state.
Section 12. That § 10-46-69 be AMENDED:
10-46-69.
There is hereby
imposed a tax of four and
one-half and
two-tenths percent
upon the privilege of the use of mobile telecommunications services,
as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that
originate and terminate in the same state and are billed to a
customer with a place of primary use in this state. Notwithstanding
any other provision of this chapter and for purposes of the tax
imposed by this section, the tax imposed upon mobile
telecommunication services
shall
must be
administered in accordance with 4 U.S.C. §§ 116-126,
as in effect on July 28, 2000.
Section 13. That § 10-46-69.1 be AMENDED:
10-46-69.1.
Except as provided
in § 10-46-69,
there is hereby imposed a tax of four and
one-half and
two-tenths percent
upon the privilege of the use of any intrastate, interstate, or
international telecommunications service that originates or
terminates in this state and that is billed or charged to a service
address in this state, or that both originates and terminates in this
state. However, the tax imposed by this section does not apply to:
(1) Any eight hundred or eight hundred type service unless the service both originates and terminates in this state;
(2) Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or
(3) Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.
If a call center uses an exemption certificate to purchase services not meeting the criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.
Section 14. That § 10-46-69.2 be AMENDED:
10-46-69.2.
There is hereby
imposed a tax of four and
one-half and
two-tenths percent
upon the privilege of the use of any ancillary services.
Section 15. That § 10-46E-1 be AMENDED:
10-46E-1.
There is hereby
imposed an excise tax of four and
one-half and
two-tenths percent
on the gross receipts from the sale, resale, or lease of farm
machinery, attachment units, and irrigation equipment used
exclusively for agricultural purposes. However, if any trade-in or
exchange of used farm machinery, attachment units, and irrigation
equipment is involved in the transaction, the excise tax is only due
and may only be collected on the cash difference.
Section 16. That § 10-58-1 be AMENDED:
10-58-1.
There is imposed
upon owners and operators a special amusement excise tax of four and
one-half and
two-tenths percent
of the gross receipts from the operation of any mechanical or
electronic amusement device. The tax imposed by this section is in
lieu of the tax imposed pursuant to chapter 10-45.
Section 17. That § 10-64-9 be REPEALED:
If the state is able to
enforce the obligation to collect and remit sales tax on remote
sellers who deliver tangible personal property, products transferred
electronically, or services directly to the citizens of South Dakota,
the additional net revenue from such obligation shall be used to
reduce the rate of certain taxes. The rate of tax imposed by
§§ 10-45-2,
10-45-5,
10-45-5.3,
10-45-6,
10-45-6.1,
10-45-6.2,
10-45-8,
10-45-71,
10-46-2.1,
10-46-2.2,
10-46-58,
10-46-69,
10-46-69.1,
10-46-69.2,
10-46E-1,
and 10-58-1
shall be reduced by one-tenth percent on July first following the
calendar year for which each additional twenty million dollar
increment of net revenue is collected and remitted by such remote
sellers. However, the rate of tax imposed by §§ 10-45-2,
10-45-5,
10-45-5.3,
10-45-6,
10-45-6.1,
10-45-6.2,
10-45-8,
10-45-71,
10-46-2.1,
10-46-2.2,
10-46-58,
10-46-69,
10-46-69.1,
10-46-69.2,
10-46E-1,
and 10-58-1
may not be reduced below four percent pursuant to the provisions of
this section.
Underscores indicate new language.
Overstrikes
indicate deleted language.