On Mar. 17, SD LEG approved bill exempting tax re partnership service
SD LEG enacted bill HB 1245 exempting certain services to a partnership from State sales and use of tax gross receipts; add sections to SD LEG 10-45 and SD LEG 10-46.
Bill Provisions
Outlines exemptions for taxes, including gross receipts from services rendered by natural person to business taxed as partnership in which natural person is an owner.
Also, gross receipts from services rendered by limited liability company, which has no employees and is wholly owned by a natural person, to business taxed as partnership.
Gross receipts from services rendered by corporation, which is wholly owned by natural person, has no employees other than owner, to business taxed as partnership.
Legislative History
On Feb. 5, 2025, bill was introduced in House; on Feb. 20, 2025, bill passed House.
On Feb. 21, 2025, bill was introduced in Senate; on Mar. 10, 2025, bill passed Senate.
On Mar. 13, 2025, bill delivered to governor; on Mar. 17, 2025, bill signed by governor.
Effectiveness
SD law sets effective date of bills passed during regular session as Jul. 1, 2025.
Regulators
SD LEG
Entity Types
CNSM
Reference
Bill HB1245, 3/17/2025; Citation: *SD LEG* 10-45, 10-46;
