10-39-1 to 10-39-22. Repealed.
10-39-23 to 10-39-41. Repealed.
10-39-42
Definitions.
10-39-43
Severance tax on gold.
10-39-44
Gross yield and gross production defined.
10-39-45
Finished value subject to tax--Allocation between processors.
10-39-45.1
Imposition of tax on net profit--Rate.
10-39-45.2
Deductions for determining net profit.
10-39-45.3
Estimated tax--Filing--Payment.
10-39-45.4
Annual filing--Payment, refund, or application to next estimate.
10-39-45.5
Annual statement required--Form--Contents.
10-39-45.6
Delinquency.
10-39-46
Superseded.
10-39-47
Repealed.
10-39-48
Failure to file statements as misdemeanor--Determination of tax.
10-39-49
Promulgation of rules.
10-39-50
Access to taxpayer's records--Violation as misdemeanor.
10-39-51
Payment under protest--Action for recovery--Repayment--Restraining collection
prohibited.
10-39-52
False statement as felony--Forfeiture.
10-39-53
Exemption of persons severing small amounts.
10-39-54
Distribution of proceeds.
10-39-54.1
Transfer of revenue payable to county.
10-39-54.2
Impact and economic diversification trust fund--Deposit of county funds therein--Threshold level for allocations.
10-39-54.3
Allocation of funds by county--Purposes.
10-39-54.4
Annual accounting by county.
10-39-55
Repealed.
10-39-56
Tax on owners of royalty or working interests--Withholding and remittance--Exemptions.
10-39-58
Temporary provisions for severance tax on precious metals--Rate according to value
of gross yield.
10-39-59
Due dates of quarterly payments.
10-39-60
Temporary tax not additional tax.
10-39-61 to 10-39-66. Repealed.
10-39-67
Filing verified estimates--Payment due.
10-39-68
Additional tax on precious metals--Rate.
10-39-42. Definitions.
Terms used in this chapter mean:
(1) "Department," the South Dakota Department of Revenue;
(2) "Precious metals," gold and silver;
(3) "Secretary," the secretary of the South Dakota Department of Revenue;
(4) "Severing," the mining, extracting, or producing of any precious metal.
Source: SL 1981, ch 95, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 37, § 91; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-43. Severance tax on gold.
For the privilege of severing precious metals in this state, there is imposed a severance tax of four dollars per ounce of gold severed in this state.
Source: SL 1981, ch 95, § 2; SL 1984, ch 78, § 1; SL 1994, ch 89, § 1.
10-39-44. Gross yield and gross production defined.
In this chapter, gross yield means total receipts from the sale of precious metals severed in this state. Gross yield includes the amount received in money, credits, property, or other consideration from the sale of precious metals severed in this state without any deduction for the cost of severing precious metals, the cost of labor or services, deduction for losses, or any other expenses. Gross production means the total number of ounces of precious metals severed in this state.
Source: SL 1981, ch 95, § 3; SL 1994, ch 89, § 2.
10-39-45. Finished value subject to tax--Allocation between processors.
For the purposes of this chapter, the severing of precious metals and the further acts or processes necessary to separate, refine, or finish the product are construed to be a continuous and uninterrupted process, and the tax imposed by this chapter shall apply to the value of the finished product. If the processes of refining, finishing, or smelting are carried on by a different person than mined or severed the ore or product from its natural state, the tax shall apply to the value of the finished product and the amount payable by each part engaged in the production shall be allocated by the secretary of revenue by a computation of the value of the product in each state of production. The total tax so allocated may not exceed the total percent to be collected.
Source: SL 1981, ch 95, § 4; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-45.1. Imposition of tax on net profit--Rate.
In addition to any other tax imposed in chapter 10-39, there is imposed a tax of ten percent of the net profits from the sale of precious metals severed in this state.
Source: SL 1984, ch 78, § 2; SL 1994, ch 89, § 3.
10-39-45.2. Deductions for determining net profit.
Net profits shall be determined by subtracting from the gross yield, as defined by § 10-39-44, the following deductions for costs paid or incurred during the period for which the tax is paid:
(1) The cost of extracting the precious metals;
(2) The cost of transporting the precious metals from the mines to the place or places of reduction, refining, and sale;
(3) The cost of reduction, refining, and sale;
(4) The cost of marketing and delivering the products and the conversion of the products into money;
(5) The cost of maintenance and repairs of all mine machinery, equipment, apparatus, and facilities; all milling, smelting, and reduction works, plants, and facilities; all transportation facilities and equipment; and general administrative buildings and facilities within the State of South Dakota;
(6) All interest costs and all insurance costs paid or accrued on the machinery, equipment, apparatus, works, plants, and facilities, including moneys expended for industrial insurance or workers' compensation, the actual cost of hospital and medical attention, accident benefits, group insurance, pensions, recreation, and payments into pension and profit-sharing trusts and employee welfare;
(7) Depreciation on the cost of the machinery, equipment, apparatus, works, plants, and facilities mentioned in subdivision (5) of this section at the same rates allowable for federal income tax purposes;
(8) The cost of development and exploration work in or about the mine or upon a group of mines when operated as a unit;
(9) The cost of reclamation pursuant to chapter 45-6B;
(10) The cost of royalty payments;
(11) All state and local taxes;
(12) General administrative expense in connection with mining or extracting and milling operations incurred within the State of South Dakota.
Such deductions do not include general administrative costs or salaries incurred outside the State of South Dakota.
Source: SL 1984, ch 78, § 3.
10-39-45.3. Estimated tax--Filing--Payment.
On or before the last day of January, April, July, and October, each person who mined or extracted precious metals during the previous calendar year shall file with the Department of Revenue a verified estimate of the person's tax for the current year and pay one-fourth of the estimated taxes.
Source: SL 1984, ch 78, § 4; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 37, § 92; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-45.4. Annual filing--Payment, refund, or application to next estimate.
On or before the first day of June, each person subject to the tax imposed by this chapter shall file and pay the balance of any tax due from the previous calendar year. If the estimated tax payments made for the previous calendar year exceed the amount due, the excess shall be refunded or applied to the next quarterly estimate.
Source: SL 1984, ch 78, § 5.
10-39-45.5. Annual statement required--Form--Contents.
Any person engaged in mining or extracting precious metals in the state shall annually on the first day of June file a statement with the secretary of revenue showing the gross yield, gross production, and net profits from precious metal mining or extraction for the previous calendar year. This statement shall indicate each deduction from gross yield and the details as provided in § 10-39-45.2. The secretary shall prescribe the form for the statement required by this section. A person filing the form required by this section shall verify the accuracy of all the information contained in the report.
Source: SL 1984, ch 78, § 6; SL 1994, 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.
10-39-45.6. Delinquency.
If the total tax due is paid on or before June first and if the quarterly estimates total more than eighty percent of the total tax, no delinquency exists.
Source: SL 1984, ch 78, § 7.
10-39-48. Failure to file statements as misdemeanor--Determination of tax.
Every person severing precious metals in this state who fails to file the required statements with the Department of Revenue is guilty of a Class 1 misdemeanor. If any person fails to file required statements, the secretary of revenue may determine the value of the precious metals severed and the amount of tax due.
Source: SL 1981, ch 95, § 7; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-49. Promulgation of rules.
The secretary of revenue may, pursuant to chapter 1-26, promulgate rules concerning:
(1) The procedures for filing a tax return and payment of the tax;
(2) The definition of deductible costs; and
(3) Determining the application of the tax and exemptions.
Source: SL 1981, ch 95, § 8; SL 1987, ch. 82, § 16; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-50. Access to taxpayer's records--Violation as misdemeanor.
Any person owning a precious metal mine or severing precious metals shall, on demand by the secretary of revenue, make available all books, records, inventories, correspondence, and memoranda relating to the severing of precious metals. Any person violating the provisions of this section is guilty of a Class 2 misdemeanor.
Source: SL 1981, ch 95, § 9; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-51. Payment under protest--Action for recovery--Repayment--Restraining collection prohibited.
A taxpayer who is required by the secretary of revenue to pay a tax that the taxpayer deems improper or unlawful in amount may pay the tax under protest and may recover the tax without interest, if an action is commenced in the circuit court against the secretary within six months after payment and a judgment is granted to the taxpayer. A judgment against the secretary shall be paid out of any money not otherwise appropriated in the state general fund upon a voucher duly approved by the secretary. This remedy is exclusive of all other remedies and no injunction to restrain or delay the collection of a tax claimed to be due may be issued by any court in this state.
Source: SL 1981, ch 95, § 10; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 37, § 93; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-52. False statement as felony--Forfeiture.
A person who intentionally makes or files, under oath, a statement required by this chapter which is false, is guilty of a Class 6 felony. The market value of all precious metals on which the person makes a false statement shall be forfeited to the State of South Dakota.
Source: SL 1981, ch 95, § 11.
10-39-53. Exemption of persons severing small amounts.
Each person severing precious metals shall be given an exemption from the taxes imposed by this chapter for the first twenty ounces of precious metals severed each year.
Source: SL 1981, ch 95, § 12; SL 1984, ch 78, § 8.
10-39-54. Distribution of proceeds.
All taxes, interest and penalties imposed and collected by the secretary of revenue under this chapter shall be distributed as follows:
(1) For persons severing precious metals that were in business in the state prior to January 1, 1981, all revenues collected shall be deposited in the state treasury and credited to the general fund;
(2) For persons permitted on or after January 1, 1981, for the purpose of severing precious metals, eighty percent of the revenues collected shall be deposited in the state treasury and credited to the general fund, while the remaining twenty percent shall be remitted by the secretary of revenue to the treasurer of the county in which the precious metals were severed. When the county has received a total of one million dollars attributable to any person subject to the tax, all future revenues attributable to that person shall be deposited in the state treasury and credited to the general fund. No merger, consolidation or acquisition of a person subject to §§ 10-39-54 to 10-39-54.4, inclusive, by another such person shall limit the share of revenue due to the county from the person so acquired.
However, any revenues attributed to the severance of precious metals from lands owned or controlled by the State of South Dakota shall be deposited in the common school permanent fund.
Source: SL 1981, ch 95, § 13; SL 1988, ch 101, § 1; SL 1993, ch 53, § 20; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-54.1. Transfer of revenue payable to county.
The secretary of revenue shall transfer by the end of the calendar month next succeeding each reporting period the revenue payable to a county pursuant to subdivision § 10-39-54(2).
Source: SL 1988, ch 101, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-39-54.2. Impact and economic diversification trust fund--Deposit of county funds therein--Threshold level for allocations.
Upon receipt of any funds paid to a county under the provisions of §§ 10-39-54 to 10-39-54.4, inclusive, the county treasurer shall deposit the funds in a trust account to be known as the impact and economic diversification trust fund. No allocation of such funds for authorized purposes may be made until the balance of such fund, including accumulated interest, initially reaches or exceeds a threshold level of four hundred thousand dollars.
Source: SL 1988, ch 101, § 3.
10-39-54.3. Allocation of funds by county--Purposes.
The county auditor shall, at the direction of the board of county commissioners, allocate funds received by the county pursuant to §§ 10-39-54 to 10-39-54.4, inclusive, to be distributed by the county treasurer for the following purposes in the indicated amounts:
(1) On a yearly basis, the board of county commissioners may allocate funds, in an amount not exceeding one hundred thousand dollars, for road and school purposes to offset social, economic, or physical impacts, either direct or indirect, resulting from mineral development or production in the county;
(2) Accumulated interest income earned on the principal of the fund may be allocated under terms and conditions to be determined by the board of county commissioners for the purpose of fostering the diversification and expansion of the economic base of the county by assisting the private sector in generating employment and income opportunities for county residents;
(3) As a result of either a severe economic impact that would have widespread negative income and employment consequences on the residents of the county or the presence of an unusual economic development opportunity that would have a significant positive impact on the economic base and income or employment levels of the county, the commissioners may allocate any amount of revenue contained in the fund. Any funds spent pursuant to this subdivision shall be based upon a credible feasibility analysis or mitigation plan and shall have the approval of the Governor's Office of Economic Development or any successor agency that is charged with promoting economic development in the state;
(4) A maximum of ten thousand dollars per year may be allocated for research activities that will foster the expansion and diversification of the economic base of the county, including but not limited to economic feasibility studies, recreation planning and land utilization studies designed to analyze potential, adaptive reuse of previously reclaimed mining land.
Source: SL 1988, ch 101, § 4.
10-39-54.4. Annual accounting by county.
On or before January thirty-first of each year, the board of county commissioners shall cause to be filed with the state auditor general a financial accounting of all funds held at the beginning and end of the previous calendar year, segregating such funds into severance tax payments and interest earnings generated from such payments. The county shall report the uses associated with the spending of any fund proceeds during the previous calendar year, categorized in accordance with the four classes of use specified in § 10-39-54.3.
Source: SL 1988, ch 101, § 5.
10-39-56. Tax on owners of royalty or working interests--Withholding and remittance--Exemptions.
The owner of a royalty interest, of an overriding royalty or of profits or working interest shall pay a tax equal to eight percent of the value received for the right to sever precious metals. The person severing precious metals shall withhold the tax from the distributions made to the owner of interest. The person severing precious metals shall remit the tax with his quarterly remittance following the distribution. The provisions of this section do not apply to royalty interests owned by the federal government, state government, or a local government.
Source: SL 1984, ch 78, § 10.
10-39-58. Temporary provisions for severance tax on precious metals--Rate according to value of gross yield.
Notwithstanding the provisions of § 10-39-43, for the privilege of severing precious metals in this state, for the time period beginning July 1, 1993, and ending June 30, 1994, there is imposed a severance tax of two percent of the first fifty million dollars of the gross yield from the sale of precious metals severed in this state, and a severance tax of one percent of the gross yield from the sale of precious metals in excess of fifty million dollars severed in this state.
Source: SL 1992, ch 87, § 1; SL 1993, ch 93, § 1.
10-39-59. Due dates of quarterly payments.
Notwithstanding the provisions of §§ 10-39-45.3, 10-39-45.4, and 10-39-45.5, the period set forth in § 10-39-58 shall be treated as a separate tax year. The estimated payment for the quarter ending September 30, 1993, is due on or before the last day of October; the estimated payment for the quarter ending December 31, 1993, is due on or before the last day of January 1994; the estimated payment for the quarter ending March 31, 1994, is due on or before the last day of April 1994, and the estimated payment for the quarter ending June 30, 1994, is due on or before the last day of July 1994.
The final return and final payment of tax for the period provided for in § 10-39-58 is due December 1, 1994. If the total tax due is paid on or before December 1, 1994, and if the quarterly estimates total more than eighty percent of the total tax, no delinquency exists. The final return and final payment of tax for that portion of the calendar tax year ending December 31, 1994, not included within the provisions of § 10-39-58, is due as provided in §§ 10-39-45.4 and 10-39-45.5.
Source: SL 1992, ch 87, § 2; SL 1993, ch 93, § 2.
10-39-60. Temporary tax not additional tax.
Nothing in § 10-39-58 or 10-39-59 may be construed to mean that the tax imposed under § 10-39-58 is in addition to the tax imposed by § 10-39-43.
Source: SL 1992, ch 87, § 3.
10-39-67. Filing verified estimates--Payment due.
Effective January 1, 1993, persons required to report net profits tax shall file verified estimates of the tax due and pay one-fourth of the tax on the last day of April for the quarter ending on March thirty-first, on the last day of July for the quarter ending June thirtieth, on the last day of October for the quarter ending September thirtieth, and on the last day of January for the quarter ending December thirty-first. The final return and final payment of any additional tax due for the preceding calendar year is due June first of the year following the year for which the report is due.
Source: SL 1994, ch 89, § 4.
10-39-68. Additional tax on precious metals--Rate.
In addition to the tax imposed in § 10-39-43, there is hereby imposed an additional tax on each ounce of precious metals severed as follows:
(1) Four dollars per ounce of gold severed during a quarter if the average price of the precious metal is eight hundred dollars per ounce or greater;
(2) Three dollars per ounce of gold severed during a quarter if the average price of the precious metal is seven hundred dollars per ounce or greater;
(3) Two dollars per ounce of gold severed during a quarter if the average price of the precious metal is six hundred dollars per ounce or greater; and
(4) One dollar per ounce of gold severed during a quarter if the average price of the precious metal is five hundred dollars per ounce or greater.
The average price of gold shall be computed by summing the daily London Final price of the precious metal for each business day of the quarter and dividing by the number of business days in the quarter.
Source: SL 1994, ch 89, § 5.
