Budget & Taxes (Sales Tax)

This bill exempts sales tax on enterprise information technology equipment and computer software purchased for use in South Dakota's qualified data centers. It directly affects data center owners, operators, or tenants (referred to as "qualified businesses") who meet specific criteria, such as having facilities classified as real property subject to taxation and equipped with fire suppression systems. The key mechanism requires businesses to submit documentation to the Department of Revenue to verify eligibility and maintain annual certification. To retain the exemption, businesses must also ensure electric service agreements avoid shifting costs to other customers and confirm water usage compatibility with local providers. The tax exemption applies to equipment like servers, cooling systems, power infrastructure, and security systems used exclusively in these facilities.

HB 1191 exempts firearm sales from South Dakota's sales tax on or after December 1st each year. The bill directly affects firearm buyers and sellers within South Dakota, applying to all firearms defined under state law (§ 22-1-2). Key provision: it adds a new tax exemption to Chapter 10-45, removing the sales tax obligation for qualifying firearm transactions during this annual period. This is a straightforward tax policy change with no additional requirements or administrative mechanisms.

HB 1005 exempts sales and use taxes on data center equipment and software for businesses operating qualified data centers in South Dakota. It specifically covers servers, cooling systems, power infrastructure, security systems, and related technology used in facilities meeting strict criteria (e.g., built between 2026-2036, meeting fire safety standards). Qualified businesses must verify eligibility with the Department of Revenue and maintain compliance with electric utility agreements and water usage requirements. The tax exemption lasts 50 years from the facility's construction permit date. This directly affects data center operators seeking to reduce operational costs in South Dakota.