CHAPTER 10-12A
TAX COLLECTION AGREEMENTS WITH INDIAN TRIBES
10-12A-1 Definition of terms.
10-12A-2 Legislative findings--Agreements authorized.
10-12A-3 10-12A-3. Repealed by SL 2003, ch 54, § 3.
10-12A-4 Agreement to collect taxes for tribes--Fee.
10-12A-4.1 Approval by Governor and attorney general required--Publication in counties affected.
10-12A-5 Percentage of state and tribal tax proceeds remitted to tribe.
10-12A-6 Duration of collection agreements--Renewal.
10-12A-7 10-12A-7. Repealed by SL 2003, ch 54, § 8.
10-12A-8 State jurisdiction within Indian country.
10-12A-9 Authority to collect fuel excise taxes under this chapter revoked if Hayden-Cartwright Act authorizes state imposition of tax.
10-12A-1. Definition of terms.
Terms as used in this chapter mean:
(1) "Department," the South Dakota Department of Revenue;
(2) "Indian country," those areas defined in 18 U.S.C. § 1151; and
(3) "Tribal tax," any tax imposed by an Indian tribe on persons subject to the Indian tribe's taxing powers.
Source: SL 1974, ch 105, § 1; SL 2003, ch 54, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-12A-2. Legislative findings--Agreements authorized.
The Legislature finds that the public interest of both Indians and non-Indians is best served by close cooperation between the state government and the Indian tribes. The Legislature finds this cooperation to be especially important in the area of taxation. Accordingly, the department is hereby authorized to enter into tax collection agreements with Indian tribes.
Source: SL 1974, ch 105, § 2; SL 2003, ch 54, § 2.
10-12A-4. Agreement to collect taxes for tribes--Fee.
The department may enter into tax collection agreements with any Indian tribe under the provisions of this chapter and chapter 1-24. These agreements may provide for the collection of any of the following state taxes and any tribal taxes imposed by a tribe that are identical to the following state taxes:
(1) The retail sales and service tax imposed by chapter 10-45;
(2) The use tax imposed by chapter 10-46;
(3) The contractors' excise tax imposed by chapter 10-46A;
(4) The alternate contractors' excise tax imposed by chapter 10-46B;
(5) The cigarette tax imposed by chapter 10-50;
(6) The motor vehicle excise tax imposed by chapter 32-5B;
(7) The fuel excise tax imposed by chapter 10-47B;
(8) The wholesale tax on tobacco products imposed by chapter 10-50;
(9) The amusement device tax imposed by chapter 10-58;
(10) The gross receipts tax on visitor related businesses imposed by chapter 10-45D;
(11) The excise tax on farm machinery, attachment units, and irrigation equipment imposed by chapter 10-46E.
The agreement may provide for the retention by the department of an agreed-upon percentage of the gross revenue as an administrative fee.
Source: SL 1974, ch 105, § 4; SL 1981, ch 86, § 2; SL 1991, ch 89, § 2; SL 2003, ch 54, § 4; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2005, ch 61, § 1; SL 2006, ch 58, § 23, eff. Mar. 2, 2006; SL 2010, ch 50, § 1; SL 2015, ch 63, § 4.
10-12A-4.1. Approval by Governor and attorney general required--Publication in counties affected.
Any tax collection agreement entered into pursuant to this chapter is binding and effective only after it is approved by the Governor and attorney general of the State of South Dakota. Prior to approval by the Governor and the attorney general, notice of the pending agreement shall be published by the department in the legal newspaper of the county or counties to be affected by the agreement, not less than two weeks prior to approval.
Source: SL 1978, ch 78; SL 2003, ch 54, § 5.
10-12A-5. Percentage of state and tribal tax proceeds remitted to tribe.
A tax collection agreement between the department and an Indian tribe may provide, if agreed upon by the parties, that a fixed percentage of the total annual state and tribal tax proceeds from an area of Indian country shall be remitted to the Indian tribe in lieu of the exact amount of the revenue collected as a result of the imposition of tribal taxes.
Source: SL 1974, ch 105, § 5; SL 2003, ch 54, § 6.
10-12A-6. Duration of collection agreements--Renewal.
A tax collection agreement between the department and an Indian tribe may not be for a term exceeding ten years but may be renewed upon expiration by the mutual consent of the parties.
Source: SL 1974, ch 105, § 6; SL 2003, ch 54, § 7; SL 2024, ch 36, § 1.
10-12A-8. State jurisdiction within Indian country.
Nothing in this chapter may be construed to relinquish any jurisdiction the state might have to levy or collect from any person any tax or fee within Indian country.
Source: SL 1991, ch 89, § 3; SL 2003, ch 54, § 9.
10-12A-9. Authority to collect fuel excise taxes under this chapter revoked if Hayden-Cartwright Act authorizes state imposition of tax.
The authority granted by subdivision 10-12A-4(7) is hereby revoked if the South Dakota Supreme Court or the United States Supreme Court rules that the Hayden-Cartwright Act, 4 U.S.C. § 104, authorizes the state to impose state motor fuel taxes on enrolled tribal members on Indian country controlled by the member's tribe.
Source: SL 2003, ch 54, § 10.
