South Dakota 2025 Regular Session

South Dakota House Bill HB1050

Introduced
1/15/25  

Caption

Authorize municipalities to impose a new tax to fund capital improvement projects.

Impact

The enactment of HB 1050 will allow local governments greater flexibility in generating revenue specifically earmarked for capital projects. Each municipality will have the discretion to establish this tax, which must align with state tax laws, except for the tax rate itself. The revenue collected is mandated to be deposited into a special capital outlay fund and can only be utilized for specified purposes such as property acquisition, construction, or renovation. This can significantly impact the financial management of local budgets and the ability to improve community facilities.

Summary

House Bill 1050 authorizes municipalities in South Dakota to impose a gross receipts tax to fund capital improvement projects. The tax rate is limited to a maximum of one percent on all taxable sales of tangible personal property and services within the municipality. This new municipality-imposed tax is meant to provide more financial resources to address infrastructure needs and other necessary improvements within local communities, thereby potentially enhancing local development and public services.

Contention

Notable points of concern surrounding HB 1050 include the requirements for voter approval and the establishment of a capital improvement board in each municipality. The bill stipulates that the proposed tax must receive a favorable vote from at least sixty percent of the electorate during an annual election, which proponents argue ensures community input and transparency. However, some may view this voter mandate as a potential barrier to timely development initiatives, as it could delay necessary funding for urgent projects. Additionally, the functioning of the capital improvement board could be scrutinized regarding its effectiveness and representation in decisions impacting local communities.

Companion Bills

No companion bills found.

Previously Filed As

SD HB1050

Authorize counties to issue bonds for certain expenditures funded by a gross receipts tax.

SD SB99

Authorize counties to issue bonds for certain expenditures funded by a gross receipts tax.

SD SB155

Create the jail improvement and construction fund for the improvement and construction of jails, to make an appropriation therefor, and to declare an emergency.

SD SB74

Provide for the establishment of regional jail authorities.

SD SB131

Remove certain limitations on property tax levy increases.

SD SB201

Provide new statutory requirements for regulating linear transmission facilities, to allow counties to impose a surcharge on certain pipeline companies, and to establish a landowner bill of rights.

SD HB1109

Modify the occupation tax for business improvement districts.

SD HB1194

Clarify provisions pertaining to tax increment finance districts.

SD SB219

Modify provisions related to the control of counties and municipalities over medical marijuana establishments within their jurisdictions.

SD SB181

Authorize the provision of medical records and the imposition of related fees.

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