25.139.28 100th Legislative Session 1245
2025 South Dakota Legislature
House Bill 1245
Introduced by: Representative Massie
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to exclude guaranteed payments made to partners from the definition of 1
gross receipts. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That a NEW SECTION be added to chapter 10-45: 4
For purposes of the tax imposed by this chapter, gross receipts do not include any 5
guaranteed payment, as described in 26 U.S.C. ยง 707(c) (1986), to a partner who is a: 6
(1) Natural person; 7
(2) Corporation whose only employees are owners of the corporation; or 8
(3) Limited liability company that has no employees and is owned by a natural person. 9