25.139.29 100th Legislative Session 1245
2025 South Dakota Legislature
House Bill 1245
HOUSE TAXATION ENGROSSED
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, and to exempt guaranteed payments made to partners from 2
the state use tax. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4
Section 1. That a NEW SECTION be added to chapter 10-45: 5
For purposes of the tax imposed by this chapter, gross receipts do not include any 6
guaranteed payment, as described in 26 U.S.C. § 707(c) (1986), to a partner who is a: 7
(1) Natural person; 8
(2) Corporation whose only employees are owners of the corporation; or 9
(3) Limited liability company that has no employees and is owned by a natural person. 10
Section 2. That a NEW SECTION be added to chapter 10-46: 11
Exempt from the provisions of this chapter, and the tax imposed by it, are the 12
gross receipts from any guaranteed payment, as described in 26 U.S.C. § 707(c) (1986), 13
to a partner who is a: 14
(1) Natural person; 15
(2) Corporation whose only employees are owners of the corporation; or 16
(3) Limited liability company that has no employees and is owned by a natural person. 17