Title 10 — TAXATION

10-39A-16 Action by secretary for collection of delinquent taxes--Exemption from execution. 10-39A-17

All delinquent taxes imposed by this chapter shall constitute a debt due to the State of South Dakota and may be collected by action brought by the secretary in the name of the state against the delinquent tax debtor in any court of competent jurisdiction. No exemptions from the …

10-39A-18 Inspection of books and records--Authority of secretary--Violation as misdemeanor. 10-39A-19 Inspection of books and records--Authority of county commissioner--Violation as misdemeanor. 10-39A-20 False statement under oath as perjury. 10-39A-21

The secretary may inspect or examine any books, waybills, inventories, correspondence, and memoranda relating to or used in the transaction of the business of a person subject to the tax imposed by this chapter. It is a Class 1 misdemeanor for any person having charge, control, o…

The board of county commissioners of the affected county may inspect or examine any books, waybills, inventories, correspondence, and memoranda relating to or used in the transaction of the business of a person subject to the tax imposed by this chapter and severing energy minera…

Except as otherwise provided in this chapter, the taxable value of any energy mineral which has been sold is the sale price of such mineral less any rental or royalty payment belonging to the United States or the State of South Dakota or its political subdivisions and the taxable…

When any energy mineral has a posted field price at the point of productions, the taxable value of such mineral is the posted field price. Source: SL 1978, ch 81 , § 5.

The taxable value of severed and saved uranium - bearing material is the sales price per pound of the content of triuranium octa - oxide contained in the severed and saved uranium ore or processed yellow - cake concentrate, regardless of the form in which the product is actually …

Any person, required by this chapter to make or file a statement or to verify it under oath, who intentionally makes or verifies under oath a false statement is guilty of perjury with punishment, upon conviction, as provided by law. Source: SL 1982, ch 100 , § 5. 10-39A-21. Repea…

Repealed by SL 1992, ch 158 , § 4.

Source: SL 1977, ch 93 , § 3; SL 2008, ch 37 , § 96; SL 2021, ch 49 , § 1.

An energy mineral is subject to the severance tax when it is sold or consumed, whichever occurs first. Source: SL 1978, ch 81 , § 7; SL 1991, ch 93 .

Each owner of interests in energy minerals produced from a single well or mine shall designate an operator to file all required returns and to pay the tax due under this chapter. The tax, subject to any provisions to the contrary in any written contract, lease, or other form of a…

Within thirty days after the close of each quarter ending respectively on March thirty-first, June thirtieth, September thirtieth, and December thirty-first of each year, each owner of severed energy minerals or person designated to remit the tax on behalf of the owners shall fil…

10-39A-7 Severance tax in lieu of taxes other than sales, use, and property taxes. 10-39A-8 Proceeds distributed. 10-39A-8.1 10-39A-8.1 , 10-39A-8.2. Repealed by SL 2007, ch 28 , §§ 2, 3. 10-39A-9 Funds paid to counties. 10-39A-10 County trust and agency account--Purposes for whi…

This tax is in lieu of all other occupational, excise, income, privilege, franchise taxes, and any other mineral taxes levied by the state, but is not in lieu of sales, use, and property taxes. Source: SL 1977, ch 93 , § 1; SL 2008, ch 37 , § 98; SL 2021, ch 49 , § 2.

All taxes, interest and penalties imposed and collected by the secretary under this chapter shall be distributed as follows: (1) One-half shall be returned to the county in which the energy minerals or mineral products were severed; and (2) One-half share shall be paid into the s…

Funds paid to counties under this chapter shall be paid out on warrants drawn by the state auditor on vouchers approved by the secretary. Source: SL 1978, ch 81 , § 13; SL 1979, ch 77 , § 2; SL 2021, ch 49 , § 4.

The Legislature finds that: (1) Exploration for and development of energy minerals in this state may from time to time require the expenditure of state funds in the administration of the rules and statutes; and (2) The State of South Dakota should be compensated for those reasona…

There is imposed on the severance of energy minerals in this state an excise tax, to be known as a conservation tax, equal to two and four-tenths mills of the taxable value of any energy minerals severed and saved. The tax shall be paid by the operator as defined in subdivision 1…

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…

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 …

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…

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…

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.

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…

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 …

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…

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 …

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…

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…

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. …

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…

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. …

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…

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…

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.

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…

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…

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, …

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…

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…

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…

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…

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…

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 , …

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…

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…

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…

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…