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State of South Dakota
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NINETIETH SESSION LEGISLATIVE ASSEMBLY, 2015 |
| 186W0461 | SENATE BILL NO. 180 |
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Introduced by: Senators Rave, Frerichs, Greenfield (Brock), and Peterson (Jim) and
Representatives Solum, Deutsch, Hawley, Kirschman, and Wiik
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FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the production tax for
wind energy facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-35-17 be amended to read as follows:
10-35-17. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1, 2007, and prior to July 1, 2015, shall pay the alternative annual taxes provided in §§ 10-35-18 and 10-35-19. A wind farm that produces power for the first time on or after July 1, 2015, shall pay the alternative annual taxes provided in § 10-35-18 and section 3 of this Act. The alternative taxes imposed by §§ 10-35-18 and, 10-35-19, and section 3 of this Act are in lieu of
all taxes levied by the state, counties, municipalities, school districts, or other political
subdivisions of the state on the personal and real property of the company which is used or
intended for use as a wind farm, but are not in lieu of the retail sales and service tax imposed
by chapter 10-45, the use tax imposed by chapter 10-46, or any other tax.
Section 2. That § 10-35-19 be amended to read as follows:
10-35-19. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1, 2007, and prior to July 1, 2015, shall pay an annual tax of two percent of the gross receipts of the wind farm. For purposes of this section, the gross receipts of the wind farm is its production of electricity in kilowatt hours multiplied by the South Dakota electricity base rate of $0.0475 per kilowatt hour in 2008, with the electricity base rate of $0.0475 per kilowatt hour increasing by 2.5 percent on an annual basis thereafter, as determined by the secretary. The owner of a wind farm subject to the taxunder this section shall file a report with the secretary
detailing the amount of electricity in kilowatt-hours that was produced by the wind farm for the
previous calendar year. The secretary shall prescribe the form of the report. The tax for the gross
receipts generated in a calendar year shall become due and be payable to the secretary on the
first day of February of the following year. Except as otherwise provided in §§ 10-35-16 to 10-35-22, inclusive, the provisions of chapter 10-59 apply to the administration of the tax.
Section 3. That chapter 10-35 be amended by adding thereto a NEW SECTION to read as follows:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-35-17 be amended to read as follows:
10-35-17. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1, 2007, and prior to July 1, 2015, shall pay the alternative annual taxes provided in §§ 10-35-18 and 10-35-19. A wind farm that produces power for the first time on or after July 1, 2015, shall pay the alternative annual taxes provided in § 10-35-18 and section 3 of this Act. The alternative taxes imposed by §§ 10-35-18
Section 2. That § 10-35-19 be amended to read as follows:
10-35-19. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1, 2007, and prior to July 1, 2015, shall pay an annual tax of two percent of the gross receipts of the wind farm. For purposes of this section, the gross receipts of the wind farm is its production of electricity in kilowatt hours multiplied by the South Dakota electricity base rate of $0.0475 per kilowatt hour in 2008, with the electricity base rate of $0.0475 per kilowatt hour increasing by 2.5 percent on an annual basis thereafter, as determined by the secretary. The owner of a wind farm subject to the tax
Section 3. That chapter 10-35 be amended by adding thereto a NEW SECTION to read as follows:
Any company owning or holding under lease, or otherwise, real or personal property used,
or intended for use, as a wind farm producing power for the first time on or after July 1, 2015,
shall pay an annual tax of .00035 dollars per kilowatt-hour of electricity produced by the wind
farm. The owner of a wind farm subject to the tax shall file a report with the secretary detailing
the amount of electricity in kilowatt-hours that was produced by the wind farm for the previous
calendar year. The secretary shall prescribe the form of the report. The tax for the electricity
produced in a calendar year shall become due and be payable to the secretary on the first day of
February of the following year. Except as otherwise provided in §§ 10-35-16 to 10-35-22,
inclusive, the provisions of chapter 10-59 apply to the administration of the tax.
Section 4. That § 10-35-22 be amended to read as follows:
10-35-22. Any company requiring transmission lines or wind farm collector systems or both in South Dakota for a wind farm or a power generation facility as described in § 10-35-1.3, is eligible for a partial rebate of the tax paid under § 10-35-19 or section 3 of this Act. The company shall apply for the rebate on forms prescribed by the secretary. The total amount of tax rebated shall be no more than fifty percent of the cost of the transmission lines and wind farm collector systems in South Dakota.
Section 4. That § 10-35-22 be amended to read as follows:
10-35-22. Any company requiring transmission lines or wind farm collector systems or both in South Dakota for a wind farm or a power generation facility as described in § 10-35-1.3, is eligible for a partial rebate of the tax paid under § 10-35-19 or section 3 of this Act. The company shall apply for the rebate on forms prescribed by the secretary. The total amount of tax rebated shall be no more than fifty percent of the cost of the transmission lines and wind farm collector systems in South Dakota.
The maximum rebate any company may receive in one year is ninety percent of the tax paid
under pursuant to § 10-35-19 or section 3 of this Act for the first five years and fifty percent of
the tax paid under pursuant to § 10-35-19 or section 3 of this Act for the next five years. The
secretary shall determine when the wind farm is commercially operational. No wind farm may
receive a rebate under this section after this ten year period.
The secretary shall rebate the tax from the wind energy tax fund prior to the distribution of
any money as provided in § 10-35-21. The secretary may provide a tax credit, in lieu of full
payment of the gross receipts tax, of up to eighty percent of the transmission rebate value that
has been approved by the secretary. Any revenue in the wind energy tax fund after the rebates
are paid shall be deposited in the property tax reduction fund.
