One win and one loss on new funding proposals for SD counties

Added January 20th, 2016 by

Counties still have a funding bill alive in SD legislature

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Passed:   SB 2   Purpose: revise the distribution of the revenue from the alcoholic beverage fund

 

thumbs down  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

 

 

 

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