Revise certain references to the Internal Revenue Code.
Impact
The revisions in HB 1018 are significant as they impact multiple statutes within South Dakota's tax framework, which rely on definitions from the federal Internal Revenue Code. By updating these references, the bill seeks to eliminate confusion that might arise from outdated terminology or inconsistent references, thereby facilitating better compliance for taxpayers and tax administrators alike. This alignment is crucial for maintaining coherent state tax policies that correspond with changes in federal legislation.
Summary
House Bill 1018 amends specific references to the Internal Revenue Code as it applies to various state laws in South Dakota. The primary focus of the bill is to ensure that state legislation aligns with the federal tax code, specifically the version that is in effect as of January 1, 2024. This streamlining of references aims to clarify and revise sections of the law that depend on federal definitions and standards, thereby providing more uniformity and clarity for both state and federal tax obligations.
Sentiment
The sentiment around HB 1018 appears largely positive, with support prevalent among legislators acknowledging the necessity of adapting state laws to reflect federal changes. The bill's passage through the legislative process shows broad consensus, with a majority voting in favor during discussions. This bipartisan support indicates that lawmakers perceive the bill as a straightforward and necessary update to ensure smooth tax administration.
Contention
While there was a general agreement on the need for these amendments, concerns were raised regarding the implications of continuous alignment with federal tax codes. Critics highlight that such reliance may limit the state’s ability to craft its own tax policies tailored to local needs. However, the debate remained largely focused on procedural and technical aspects of the amendments, with less contention compared to more controversial bills.
Proposing and submitting to the electors at the next general election an amendment to the Constitution of the State of South Dakota, updating references to certain officeholders and persons.