Title 10 — TAXATION
99 chapters · 2,188 sections in this title.
SDCL § 10-43-1 Definition of terms
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Terms used in this chapter mean: (1) "Corporation," joint stock companies, limited partnerships, limited liability companies, and associations organized for pecuniary profit; (a) "Domestic corporation," any corporation organized under the laws of this state; (b) "Foreign corporat…
SDCL § 10-43-10.1 Net income defined
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Net income, in the case of a financial institution, is taxable income as defined in the United States Internal Revenue Code, as defined by § 10-1-47 , and reportable for federal income tax purposes for the taxable year, but subject to the adjustments as provided in §§ 10-43-10.2 …
SDCL § 10-43-10.2 Additions to taxable income
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Added to taxable income are: (1) Interest or dividend income derived from obligations or securities of states or political subdivisions or authorities thereof not included in taxable income as determined under the Internal Revenue Code; (2) All income taxes paid or accrued, as th…
SDCL § 10-43-10.3 Subtractions from taxable income
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Subtracted from taxable income are: (1) Dividends received from financial institutions subject to taxation under this chapter to the extent such dividends were included in taxable income as determined under the Internal Revenue Code; (2) Taxes imposed upon the financial instituti…
SDCL § 10-43-10.4 Carryback of net operating losses not deductible
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No carryback of net operating losses may be deducted from net income for state tax purposes. Source: SL 1982, ch 108 ; SL 2014, ch 60 , § 3, eff. Jan. 1, 2015; SL 2016, ch 62 , § 7.
SDCL § 10-43-10.5 Carryforward of net operating losses deductible
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A deduction may be made for a carryforward of a net operating loss. The deduction is limited to the seven tax years immediately following the tax year of the loss. Net income may not be less than zero prior to making the adjustments provided for in §§ 10-43-10.2 and 10-43-10.3 be…
SDCL § 10-43-2 Tax imposed on financial institutions
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An annual tax is hereby imposed on each financial institution doing business in this state or licensed to do business in this state during any part of its tax year. Source: SL 1939, ch 263 , §§ 3, 4; SDC Supp 1960, §§ 57.30A03, 57.30A04; SDCL § 10-43-3 ; SL 1977, ch 96 , § 2; SL …
SDCL § 10-43-22.1 Tax limited to income from business within state--Formula for net income apportionment
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Financial institutions engaged in business within and without the state shall be taxed only on such business as is properly apportioned to this state. All net income shall be apportioned to this state by multiplying the net income by a fraction, the numerator of which is the prop…
SDCL § 10-43-23.1 Property factor
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The property factor used in § 10-43-22.1 is a fraction, the numerator of which is the average value of the financial institution's real and tangible property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the …
SDCL § 10-43-23.2 Valuation of property owned or rented--Net annual rental rate
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Property owned by the financial institution is valued at its original cost. Property rented by the financial institution is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental received by t…
SDCL § 10-43-23.3 Average value determination
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The average value of property shall be determined by averaging the values at the beginning and ending of the tax period if reasonably required to reflect properly the average value of the financial institution's property. Source: SL 1977, ch 96 , § 8. 10-43-24. Repealed by SL 197…
SDCL § 10-43-24.1 Payroll factor
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The payroll factor used in § 10-43-22.1 is a fraction, the numerator of which is the total amount paid in this state during the tax period by the financial institution for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. …
SDCL § 10-43-24.2 Compensation paid in state
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Compensation is paid in this state if: (1) The individual's service is performed entirely within this state; (2) The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within t…
SDCL § 10-43-25.1 Receipts factor
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The receipts factor used in § 10-43-22.1 is a fraction, the numerator of which is the total receipts of the financial institution in the state during the tax period, and the denominator of which is the total receipts of the financial institution everywhere during the tax period. …
SDCL § 10-43-25.2 Interest, fees, and penalties in nature of interest, discount, and net gain from loans included in numerator
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Interest, fees and penalties in the nature of interest, discount, and net gain from loans, including federal funds sold and acceptances, and other installment obligations shall be included in the numerator specified in § 10-43-25.1 as follows: (1) The numerator of the receipts fa…
SDCL § 10-43-25.3 Fees, commissions, service charges, and other receipts included in numerator
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Fees, other than those described in § 10-43-25.2 , commissions, service charges, and other receipts from the rendering of financial or fiduciary services shall be included in the numerator specified in § 10-43-25.1 if the service is principally performed in South Dakota unless th…
SDCL § 10-43-25.4 Rental property receipts included in numerator
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Receipts from the rental of real or tangible personal property shall be included in the numerator specified in § 10-43-25.1 if the property is principally located in South Dakota. Source: SL 1977, ch 96 , § 14; SL 2014, ch 61 , § 8, eff. Jan. 1, 2015.
SDCL § 10-43-25.5 Interest, dividends, and net gains from securities transactions included in numerator
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Interest, dividends, and net gains from transactions in securities, including stocks, bonds, and all other money markets instruments, shall be included in the numerator specified in § 10-43-25.1 if the financial institution's principal place of business is in South Dakota. Source…
SDCL § 10-43-25.6 Receipts from securities used to maintain reserves against deposits included in numerator
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Notwithstanding the provisions of § 10-43-25.5 , receipts from securities used to maintain reserves against deposits to meet federal and state reserve requirements shall be included in the numerator specified in § 10-43-25.1 based on the ratio that the deposits in South Dakota be…
SDCL § 10-43-25.7 Receipts from securities held or pledged for public or trust funds included in numerator
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Receipts from securities owned by a financial institution but held or pledged to secure public or trust funds shall be included in the numerator specified in § 10-43-25.1 if the financial institution's office where the deposits are maintained is in South Dakota. Source: SL 1977, …
SDCL § 10-43-25.8 Affiliated service income included in numerator
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Affiliated service income shall be included in the numerator specified in § 10-43-25.1 only if the income relates to: (1) Loans secured primarily by real property or tangible personal property located in this state; (2) Loans made to customers located in this state, which are not…
SDCL § 10-43-25.9 Affiliated service income defined
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For the purposes of §§ 10-43-25.3 and 10-43-25.8 , affiliated service income means fees, commissions, service charges, and other receipts from the production or servicing of loans or credit card receivables by a nondepository financial institution for another nondepository financ…
SDCL § 10-43-29.1 Alternative apportionment methods
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If the apportionment methods included in §§ 10-43-22.1 to 10-43-25.9 , inclusive, do not fairly represent the financial institution's net income in this state, the financial institution may petition for, or the secretary may require with respect to all or any part of the taxpayer…
SDCL § 10-43-30 Time for filing annual return and paying tax--Penalty and interest for delinquency
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Each taxpayer shall file a return for the tax year, and pay any tax imposed by this chapter, within fifteen days after the taxpayer's federal income tax return is due. Any return not filed by the due date or tax not paid by the due date is delinquent and bears penalty and interes…
SDCL § 10-43-30.1 Extension of time to file return--Conditions--Interest
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Any taxpayer shall receive an extension of time to file the return required by this chapter to a day not later than six months from the day the return was originally due, if the taxpayer: (1) Files for an extension of time to file the taxpayer's federal income tax return; (2) Fil…
SDCL § 10-43-34 Final return on dissolution
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Before a corporation may be dissolved and its assets distributed, the corporation shall make a return for any settlement of the tax for any income earned in the income year up to its final date of dissolution. Source: SL 1935, ch 205 , § 15; SDC 1939, § 57.2713; SL 2008, ch 37 , …
SDCL § 10-43-36 Consolidated report of related corporations
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Any related corporation required to report under this chapter and owned or controlled either directly or indirectly by another corporation may petition the secretary of revenue, or may be required by the secretary of revenue, to make a consolidated report with related corporation…
SDCL § 10-43-4 Time of liability for tax--Rate of tax--Minimum
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The liability for the tax imposed by this chapter shall arise upon the first day of each tax year and shall be based upon the net income assignable to this state at the rate of six percent on net income of four hundred million dollars or less; at the rate of five percent on net i…
SDCL § 10-43-42.1 Administration of chapter by secretary of revenue--Promulgation of rules
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The provisions of this chapter shall be administered by the secretary of revenue and the secretary may promulgate rules, pursuant to chapter 1-26 , concerning: (1) The procedure for filing tax returns and payment of the tax; (2) The type of accounting to be used; (3) The definiti…
SDCL § 10-43-43.1 Records kept by taxpayers--Inspection by secretary--Out-of-state records
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Each person subject to tax under this chapter shall make and keep for a period of six years after federal taxable income has been finally determined by the United States any records as required by the secretary of revenue or otherwise necessary for the administration of this chap…
SDCL § 10-43-46 False or fraudulent return or information with intent to evade legal requirements as misdemeanor--Civil penalty
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Any person, corporation, or any officer or employee of a corporation, or member or employee of any partnership, who, with intent to evade any of the requirements of this chapter or any lawful requirements of the secretary of revenue pursuant to this chapter, makes a false or frau…
SDCL § 10-43-5 Income tax in lieu of other taxes
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The tax referred to in this chapter is in lieu of all other taxes, state, county, and local, except taxes upon the institutions' real property, taxes upon the institutions' leased sites, taxes upon tangible personal property and products transferred electronically not normally us…
SDCL § 10-43-50.1 Supplementary return required for taxable income increase due to federal adjustment--Payment of additional tax and interest
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A taxpayer who has filed a return with the department for a specific tax year and subsequently has a change or correction to the taxpayer's net income, as a result of audit or adjustment by the United States, that increases the taxpayer's taxable income in this state, shall repor…
SDCL § 10-43-50.2 Supplementary return for taxable income decrease due to federal adjustment--Refund for overpayment
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A taxpayer who has filed a return with the department for a specific tax year and subsequently has a change or correction to the taxpayer's net income, as a result of audit or adjustment by the United States, that decreases the taxpayer's taxable income in this state, may report …
SDCL § 10-43-50.3 Failure to file supplementary return--Secretary's determination of additional tax--Interest and penalties
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If a taxpayer fails to file a supplementary return as required by § 10-43-50.1 , the secretary may determine the amount of additional tax due, if any, based on information available to the secretary. The secretary's determination of additional tax due, together with interest and …
SDCL § 10-43-73 Tax payment as condition precedent to doing business--Injunction against continuation in business by delinquent taxpayer
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The payment of the tax levied by this chapter is, in addition to all other licenses and taxes imposed by the laws of this state, a condition precedent to the engaging or continuing to engage in a business or occupation within this state. Default in the payment of taxes as provide…
SDCL § 10-43-76 Percentage of proceeds retained by state--Payment of remainder to counties--Branch office remittances kept separate
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Upon the receipt of the funds referred to in this chapter, the secretary of revenue shall deposit ninety-five percent of the taxes paid by credit card banks and twenty-six and two-thirds percent of all other revenue to the general fund. The secretary of revenue shall remit the re…
SDCL § 10-43-77 Apportionment of funds among taxing subdivisions
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The county treasurer upon receipt of the funds, remitted to the county pursuant to § 10-43-76 , shall apportion and distribute the funds between the taxing subdivisions in the same proportion as the real property taxes levied in each taxing subdivision in the previous year as det…
SDCL § 10-43-88 Financial institution authorized to engage in trust business
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For the purpose of this section and §§ 10-43-89 and 10-43-90 , financial institution means a financial institution defined in subdivision § 10-43-1(4) but is one which is authorized to engage in the trust business and has not been authorized to accept deposits by the director, co…
SDCL § 10-43-89 Tax on financial institutions engaging in trust business
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There is hereby imposed an annual minimum tax upon the financial institutions defined in §
SDCL § 10-43-90 Determining minimum tax imposed upon financial institutions engaged in the trust business
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If a financial institution as described in § 10-43-88 has been authorized to engage in the trust business in South Dakota for fewer than twelve months, the annual minimum tax is five hundred dollars; for more than twelve months, but fewer than twenty - four months the annual mini…
SDCL § 10-43-91 Tax on trustee of extended term trust
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Any corporation, limited liability company, partnership, or other business entity which serves as a trustee or co - trustee for an extended term trust, which trust has a situs for state income tax purposes in the State of South Dakota, is subject to the South Dakota income tax on…
SDCL § 10-43-92 Extended term trust defined
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As used in § 10-43-91 , the term, extended term trust, means any trust which has no limitation on duration which would require the trust to cease and terminate on a date not later than twenty-one years beyond any life in being. Extended term trusts may not include any trust subje…
SDCL § 10-43-94 Entities exempt from payment of tax
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The State of South Dakota, any political subdivision of the state, and any quasi-governmental organization created by an executive order of the State of South Dakota and any subsidiary of such organization; any nonprofit United States Treasury Community Development Financial Inst…