Counties still have a funding bill alive in SD legislature
Passed: SB 2 Purpose: revise the distribution of the revenue from the alcoholic beverage fund
Killed: HB1006 Purpose: authorize counties to impose sales and use taxes
Although South Dakota’s House State Affairs committee killed HB1006 – a proposal to allow counties to raise revenue through a 1 cent sales tax, the Senate Local Government kept alive an amended version of SB 2 – a proposal to revise the distribution of the revenue from alcoholic beverage fund.
Originally SB 2 proposed dividing the revenue from the Alcoholic Beverage Fund evenly between the state, county and municipalities (1/3 each). An approved Amendment decreased the county and municipality shares to 25% each, leaving the state with 50% of the revenue. The Bureau of Finance and Management testified that this would reroute $3.8 million from the state general fund to the counties. A quarter of the counties’ share would come be evenly allocated between all counties so each would get a minimum baseline benefit of about $14,000 per county. The remaining 75% of the county share would be distributed based on county population. The use of these funds would be limited to law enforcement and court or incarceration expenses.
Senate Bill 2 will now be heard on the full Senate Floor, and if successful, would move over to the House of Representatives for further consideration.
The legislation was a recommendation of the SD Legislature’s 2015 County Summer Study (see their report on page 9). Other bills filed from this summer study are:
HB 1002 Proposal: eliminate certain reporting requirements for the county general fund. Status: Passed Local Government Committee on 1-19-2016
HB 1003 Purpose: revise certain administrative functions regarding county government. Status: Passed Local Government Committee on 1-19-2016
HB 1004 Purpose: make form and style revisions to certain statutes regarding counties. Status: Scheduled for first hearing in Local Government Committee on 1-21-2016
HB 1005 Purpose: revise and repeal certain fees that are established to compensate counties for services provided by county officials. Status: Scheduled for first hearing in Local Government on 1-21-2016