CHAPTER 10-45A
RETAIL SALES AND SERVICE TAX REFUNDS
10-45A-1 Definition of terms.
10-45A-1.1 Reduction in income allowed for taxes paid--Determination of amount.
10-45A-2 Refund of sales and service tax to elderly and disabled persons.
10-45A-2.1 Refund denied after refund of real property taxes.
10-45A-3 Right to file lost on death--Filing by guardian or attorney.
10-45A-4 Relief limited to one claimant per household--Secretary to resolve disputes.
10-45A-5 Refund amounts for single-member households.
10-45A-6 Refund amounts for multiple-member households.
10-45A-7 Secretary to prepare table.
10-45A-8 Deadline for claims--Forms and assistance from county treasurers--Extension of deadline.
10-45A-9 Claim computed by department at election of claimant.
10-45A-10 Documentary evidence with claim.
10-45A-11 Secretary to determine disability claims.
10-45A-12 Death of claimant--Disposition of claim.
10-45A-13 Proration of funds insufficient to pay all claims.
10-45A-14 Denial of claim--Hearing before secretary of revenue--Appeals.
10-45A-15 Fraudulent claims--Recovery of excess payment--Filing as petty offense.
10-45A-16 Promulgation of rules.
10-45A-1. Definition of terms.
Terms as used in this chapter, unless the context otherwise clearly requires, mean:
(1) "Department," the South Dakota Department of Revenue;
(2) "Disabled," persons receiving or having qualified to receive monetary payments, Pursuant to Title II, X, or XVI of the Social Security Act, as amended, and in effect on January 1, 1974, for all or part of the year for which a refund is claimed;
(3) "Household," the association of persons who live in the same dwelling, share its furnishings, facilities, and accommodation, but not including bona fide lessees, tenants, or roomers and boarders on contract;
(4) "Household income," all income received by all persons of a household while members of the household;
(5) "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as defined by § 10-1-47, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state reemployment assistance or unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of loss of time insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods, or other relief in kind provided by a public agency, less real estate taxes payable or ten percent of rent paid on the applicant's principal residence for the year in which application is made. However, the reduction in the individual's income may not exceed four hundred dollars;
(6) "Secretary," the secretary of the South Dakota Department of Revenue;
(7) "Single-family dwelling," a house, condominium apartment or manufactured home as defined in § 32-3-1 which is assessed and taxed as a separate unit including the platted lot upon which the structure is situated or one acre, whichever is less, and the garage, whether attached or unattached;
(8) "Tax year" or "taxable year," the calendar year or the fiscal year ending during a calendar year, used for computing household income under this chapter. A claimant's tax year is the same period as is covered by his federal income tax return.
Source: SL 1974, ch 89, § 1; SL 1979, ch 72, § 1; SL 1982, ch 95, § 2; SL 1983, ch 69, § 3; SL 1983, ch 82, § 3; SL 1984, ch 70, § 3; SL 1985, ch 83, § 3; SL 1986, ch 98, § 3; SL 1988, ch 103, § 3; SL 1989, ch 101, § 3; SL 1990, ch 83, § 3; SL 1991, ch 98, § 3; SL 1992, ch 68, § 3; SL 1993, ch 95, § 3; SL 1994, ch 92, § 3; SL 1995, ch 65, § 3; SL 1996, ch 79, § 3; SL 1997, ch 65, § 3; SL 1998, ch 68, § 3; SL 1999, ch 56, § 3; SL 2000, ch 59, § 3; SL 2001, ch 53, § 3; SL 2002, ch 59, § 3; SL 2003, ch 60, § 4; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2004, ch 90, § 3; SL 2005, ch 67, § 3; SL 2006, ch 45, § 3; SL 2007, ch 54, § 3; SL 2009, ch 39, § 10; SL 2010, ch 45, § 10; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2011, ch 48, § 10; SL 2012, ch 59, § 10; SL 2013, ch 42, § 10; SL 2014, ch 54, § 10; SL 2015, ch 62, § 10; SL 2016, ch 54, § 12; SL 2019, ch 216, § 27.
10-45A-1.1. Reduction in income allowed for taxes paid--Determination of amount.
The amount of the reduction in income allowed for taxes paid pursuant to subdivision 10-45A-1(5) shall be equal to the real property taxes paid on the principal residence of the claimant. If the residence is a single-family dwelling, then the amount of the reduction shall equal the taxes paid on the residence structure, the platted lot upon which the structure is located or one acre, whichever is less, and the garage, whether attached or unattached. If the residence is not a single-family dwelling, then the reduction shall be equal to the amount of the tax paid on or allocated to the structure and the platted lot upon which the structure is situated or one acre whichever is less, used as a residence by the claimant including the garage, whether attached or unattached.
Source: SL 1980, ch 81, § 3.
10-45A-2. Refund of sales and service tax to elderly and disabled persons.
Any person sixty-five years of age or older prior to January first in the year for which a claim for refund is made, and any disabled person as defined in subdivision 10-45A-1(2), and resident of this state for that entire calendar year, shall be reimbursed and repaid as a refund for retail sales and service taxes paid, within sixty days after the deadline, as prescribed in § 10-45A-8, for the filing of a claim with the secretary of the Department of Revenue, according to the schedule in §§ 10-45A-5 to 10-45A-7, inclusive.
Source: SL 1974, ch 89, § 2; SL 1975, ch 106, § 1; SL 1989, ch 93, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-2.1. Refund denied after refund of real property taxes.
No person who receives a refund of real property taxes under the provisions of chapter 10-18A shall be eligible for a refund of retail sales and service tax as provided in this chapter.
Source: SL 1976, ch 92, § 10.
10-45A-3. Right to file lost on death--Filing by guardian or attorney.
The right to file a claim under this chapter is personal to the claimant, and does not survive his death, but such right may be exercised on behalf of a claimant by his guardian or attorney-in-fact.
Source: SL 1974, ch 89, § 5; SL 1993, ch 213, § 82.
10-45A-4. Relief limited to one claimant per household--Secretary to resolve disputes.
Only one claimant per household per year shall be entitled to relief under this chapter. When two or more individuals of a household are able to meet the qualifications for a claimant, they may determine among them as to who the claimant shall be. If they are unable to agree, the matter shall be referred to the secretary of revenue and his decision shall be final.
Source: SL 1974, ch 89, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-5. Refund amounts for single-member households.
The amount of any claim made pursuant to this chapter by a claimant from a household consisting solely of one person is determined as follows:
(1) If the claimant's income is ten thousand five hundred sixty-six dollars or less, a sum of two hundred fifty-eight dollars;
(2) If the claimant's income is ten thousand five hundred sixty-seven dollars and not more than sixteen thousand five hundred sixty-six dollars, a sum of forty-six dollars plus three and four-tenths percent of the difference between sixteen thousand five hundred sixty-six dollars and the income of the claimant; and
(3) If the claimant's income is more than sixteen thousand five hundred sixty-six dollars, no refund.
Source: SL 1974, ch 89, § 3 (1); SL 1978, ch 79, § 1; SL 1988, ch 96, § 3; SL 1989, ch 93, § 3; SL 1990, ch 81, § 3; SL 2000, ch 53, § 3; SL 2002, ch 57, § 6; SL 2006, ch 42, § 6; SL 2008, ch 59, § 6; SL 2012, ch 65, § 6, eff. Mar. 20, 2012; SL 2013, ch 47, § 6, eff. Mar. 6, 2013; SL 2014, ch 56, § 6, eff. Mar. 26, 2014; SL 2016, ch 60, § 6, eff. Feb. 25, 2016; SL 2018, ch 62, § 6, eff. Feb. 8, 2018; SL 2019, ch 63, § 6, eff. Mar. 27, 2019; SL 2020, ch 33, § 6, eff. Mar. 16, 2020; SL 2021, ch 48, § 6, eff. Mar. 25, 2021; SL 2022, ch 31, § 7, eff. Mar. 18, 2022; SL 2023, ch 31, § 6, eff. Feb. 9, 2023; SL 2024, ch 37, § 6, eff. Feb. 15, 2024; SL 2025, ch 48, § 3, eff. Mar. 11, 2025.
10-45A-6. Refund amounts for multiple-member households.
The amount of any claim made pursuant to this chapter by a claimant from a household consisting of more than one person is determined as follows:
(1) If household income is sixteen thousand one hundred eighty-four dollars or less, the sum of five hundred eighty-one dollars;
(2) If household income is sixteen thousand one hundred eighty-five dollars and not more than twenty-two thousand four hundred eighty-four dollars, a sum of seventy-four dollars plus seven and eight-tenths percent of the difference between twenty-two thousand four hundred eighty-four dollars and total household income; and
(3) If household income is more than twenty-two thousand four hundred eighty-four dollars, no refund.
Source: SL 1974, ch 89, § 3 (2); SL 1978, ch 79, § 2; SL 1988, ch 96, § 4; SL 1989, ch 93, § 4; SL 1990, ch 81, § 4; SL 2000, ch 53, § 4; SL 2002, ch 57, § 7; SL 2006, ch 42, § 7; SL 2008, ch 59, § 7; SL 2012, ch 65, § 7, eff. Mar. 20, 2012; SL 2013, ch 47, § 7, eff. Mar. 6, 2013; SL 2014, ch 56, § 7, eff. Mar. 26, 2014; SL 2016, ch 60, § 7, eff. Feb. 25, 2016; SL 2018, ch 62, § 7, eff. Feb. 8, 2018; SL 2019, ch 63, § 7, eff. Mar. 27, 2019; SL 2020, ch 33, § 7, eff. Mar. 16, 2020; SL 2021, ch 48, § 7, eff. Mar. 25, 2021; SL 2022, ch 31, § 8, eff. Mar. 18, 2022; SL 2023, ch 31, § 7, eff. Feb. 9, 2023; SL 2024, ch 37, § 7, eff. Feb. 15, 2024; SL 2025, ch 48, § 4, eff. Mar. 11, 2025.
10-45A-7. Secretary to prepare table.
The secretary of revenue shall prepare a table under which claims shall be determined. The amount of the claim as shown in the table for each bracket shall be computed only to the nearest dollar.
Source: SL 1974, ch 89, § 3 (3); SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-8. Deadline for claims--Forms and assistance from county treasurers--Extension of deadline.
Claims for refund under § 10-45A-2 shall be made annually on or before July first upon forms prescribed by the secretary of revenue. Forms shall be made available to county treasurers who shall, upon request of a claimant, assist the claimant in completing the application and shall forward the same to the Department of Revenue. In case of sickness, absence, or other disability of the claimant, or if other good cause exists, the secretary may extend for a period not to exceed six months the time for filing a claim.
Source: SL 1974, ch 89, § 4; SL 1980, ch 81, § 5; SL 1995, ch 62, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-9. Claim computed by department at election of claimant.
The claimant, at his election, shall not be required to record on his claim the amount claimed by him. The claim allowable to persons making the election shall be computed by the department.
Source: SL 1974, ch 89, § 3 (4).
10-45A-10. Documentary evidence with claim.
Claims for refund shall include such documentary evidence as the secretary of revenue deems necessary to assure validity of the claim.
Source: SL 1974, ch 89, § 7; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-11. Secretary to determine disability claims.
The secretary of the Department of Revenue shall make the final determination as to whether a claimant seeking refund pursuant to subdivision 10-45A-1(2) is qualified thereunder.
Source: SL 1974, ch 89, § 8; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-12. Death of claimant--Disposition of claim.
If a claimant dies after having filed a timely claim, the amount thereof shall be disbursed to another member of the household as determined by the secretary of revenue. If the claimant was the only member of his household, the claim may be paid to his personal representative, but if neither is appointed and qualified within two years of the filing of the claim, the amount of the claim shall escheat to the state.
Source: SL 1974, ch 89, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-13. Proration of funds insufficient to pay all claims.
In the event that funds appropriated are not sufficient to pay all claims authorized by this chapter, funds so appropriated shall be prorated to such claimants as have timely filed.
Source: SL 1974, ch 89, § 3 (5).
10-45A-14. Denial of claim--Hearing before secretary of revenue--Appeals.
Any person aggrieved by the denial in whole or in part of relief claimed under this chapter, may within thirty days after receiving notice of such denial by the secretary of the Department of Revenue, demand and shall be entitled to a hearing, upon notice, before the secretary on the question. The procedures therein shall be conducted and appeals allowed and perfected pursuant to chapter 1-26.
Source: SL 1974, ch 89, § 10; SL 1984, ch 12, § 69; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-45A-15. Fraudulent claims--Recovery of excess payment--Filing as petty offense.
If it is determined that a claim is excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and, if the claim has been paid, the department may initiate appropriate legal actions to recover the amount paid. Fraudulently filing an excessive claim is a petty offense.
Source: SL 1974, ch 89, § 9; SL 1982, ch 86, § 38.
10-45A-16. Promulgation of rules.
The secretary of revenue shall promulgate rules pursuant to chapter 1-26 concerning:
(1) The procedure for filing a refund claim;
(2) The requirements necessary to qualify for a refund; and
(3) The definition of income.
Source: SL 1974, ch 89, § 11; SL 1987, ch 82, § 27; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
