An Act to increase a limit on video lottery gaming, and to deposit moneys into a new fund.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 10-13:

There is created in the state treasury the residential tax reduction fund.

The Department of Revenue shall administer the fund. The purpose of the fund is to provide property tax relief for owner-occupied single-family dwellings. Interest on moneys credited to the fund must remain in the fund. Expenditures from the fund must be budgeted through the general appropriation bill.

Section 2. That § 42-7A-38 be AMENDED:

42-7A-38. A video lottery machine may not allow more than two five dollars to be played on a game or award free games or credits in excess of one thousand dollars per bet. The payback value of one credit shall must be at least eighty percent of the value of the credit.

Section 3. That § 42-7A-63 be AMENDED:

42-7A-63. The commission shall maximize revenues to the state from video lottery. The state's percentage of net machine income shall be is fifty percent. The After one-half of one percent of net machine income has been deposited into the video lottery operating fund pursuant to § 42-7A-41.1, the state's percentage of net machine income shall be directly must be deposited to the general fund, except for one-half of one percent of net machine income authorized for deposit into the video lottery operating fund in an amount up to one hundred sixty-five million dollars in a year.

Moneys collected as the state's percentage of net machine income in excess of one hundred sixty-five million dollars in a year must be deposited into the residential tax reduction fund established in section 1 of this Act.