HB 1089 — modify the distributions of revenues collected from severance taxation on new permits.

26.575.1226.575.13 101st Legislative Session 1089 South Dakota Legislature House Bill 1089 IntroducedENROLLED by:AN A CT ENTITLED An Act to modify the distributions of revenues collected from severance taxation on new permits.

RepresentativeB FitzgeraldE AnIT ActENACTED toBY modifyTHE theLEGISLATURE distributionsOF ofTHE revenuesS collectedTATE fromOF severanceS taxationOUTH onD newAKOTA permits.:

B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF SOUTH D AKOTA :

All taxes, interest and penalties imposed and collected by the secretary of revenue under this chapter shall must 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 must be deposited in the state treasury and credited to the general fund;

(2) For persons permitted on or after January 1, 1981, but before July 1, 2026, for the purpose of severing precious metals, eighty percent of the revenues collected shall must be deposited in the state treasury and credited to the general fund, while the remaining twenty percent shall must be remitted by the secretary of revenue the department 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 must 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 10-39-10-39-54.4, 54.4, inclusive, by another such personperson, shall limit, limits the share of revenue due to the county from the personperson; so acquired;

No merger, consolidation or acquisition Overstrikesof indicatea deletedperson language.subject to §§ 10-39-54 to 10-39-54.4, inclusive, by another such person limits the share of revenue due to the county from the person.

26.575.1226.575.13 2 1089 ofAny arevenues personattributed subject to §§the 10-39-54severance toof 10-39-54.4,precious inclusive,metals byfrom anotherlands suchowned personor limitscontrolled theby sharethis ofstate revenuemust duebe todeposited in the countycommon fromschool thepermanent person.fund.

However, any Any revenues attributed to the severance of precious metals from lands owned or controlled by the State of South Dakota shall this state must be deposited in the common school permanent fund.

The secretary of revenue the department shall transfer, by the end of the calendar month next succeeding following each reporting period, the revenue payable to a county pursuant to subdivision § subdivisions 10-39-54(2) and (3).

UnderscoresHB1089 indicateENROLLED 26.575.13 3 1089 An Act to modify the distributions of revenues collected from severance taxation on new language.permits.

OverstrikesReceived indicateat deletedthis language.Executive Office I certify that the attached Act originated in this _____ day of _____________, the:

at ____________M.

House as Bill No.

1089 By Chief Clerk of the House for the Governor The attached Act is hereby approved this ________ day of Speaker of the House ______________, A.D., 2026 Attest:

Governor Chief Clerk of the House STATE OF SOUTH DAKOTA, ss.

Office of the Secretary of State President of the Senate Filed ____________, 2026 Attest:

at _________ o'clock __M.

Secretary of the Senate Secretary of State House Bill No.

1089 By File No.

____ Asst.

Secretary of State Chapter No.

______ HB1089 ENROLLED