South DakotaSeverance-tax revenues would be split between state and counties
The enrolled measure sets revenue-splitting rules for precious-metal mining permits and directs certain state-land mining revenue to a school fund.
What it does
For precious-metal permits issued on or after July 1, 2026, 80% of severance-tax revenue would go to the state and 20% to the county where mining occurs. Older permits follow separate rules, including a $1 million county limit.
Money tied to precious metals removed from state-owned or state-controlled land would be deposited in South Dakota's common school permanent fund.
Argument forCounties could receive a direct share of tax revenue from newer precious-metal permits, giving mining areas money tied to local activity.
Argument againstSending 20% of qualifying revenue to counties could leave less money in the state general fund for statewide uses.
More detail
The revenue secretary must send 80% of severance-tax revenue to the state general fund and 20% to the county where the precious metals were removed. This applies to businesses permitted on or after July 1, 2026, to remove precious metals. The county share is not limited by a merger, consolidation, or acquisition involving another covered business. For businesses permitted from January 1, 1981, through June 30, 2026, the same 80%/20% split applies until the county receives $1 million tied to that business; later revenue goes to the state general fund. Businesses that were operating in the state before January 1, 1981, have all of their revenue sent to the state general fund. The rule for permits issued on or after July 1, 2026, applies based on the permit date.
Revenue from removing precious metals from state-owned or state-controlled land must go into the common school permanent fund. This applies to any severance-tax revenue attributed to precious metals removed from land owned or controlled by South Dakota. The text does not state a separate start date or end date for this deposit rule.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Signed by the Governor Larry Rhoden on 2026-03-30 H.J. 578Became Law
- Mar 10Delivered to the Governor on 2026-03-10 H.J. 546To Governor
- Mar 9Signed by the President S.J. 506Major
- Mar 5Signed by the Speaker H.J. 529Major
- Mar 4Senate Do Pass , Passed, YEAS 21, NAYS 13 S.J. 459Passed Senate
- Vote recorded Placed on calendar pursuant to JR 6F-6. Result: pass.Upper
- Vote recorded Do Pass. Result: pass.Upper
- Mar 4Placed on calendar pursuant to JR 6F-6 , Passed, YEAS 23, NAYS 11 S.J. 459
- Mar 3Committee on Appropriations Report out of committee without recommendation , Passed,
- Mar 3Recalled from committee (Rule 7-7) , Passed, S.J. 444
- Mar 2Committee on Appropriations Deferred to the 41st legislative day , Passed, YEAS 5, NAYS 4
- Vote recorded Deferred to the 41st legislative day. Result: pass.Upper
- Mar 2Scheduled for hearing
- Feb 20First read in Senate and referred to Senate Committee on Appropriations S.J. 340Minor
- Feb 19House of Representatives Do Pass , Passed, YEAS 65, NAYS 0 H.J. 372Passed House
- Vote recorded Do Pass. Result: pass.Lower
- Feb 18Committee on Appropriations Do Pass , Passed, YEAS 9, NAYS 0Minor
- Vote recorded Do Pass. Result: pass.Lower
- Feb 18Scheduled for hearing
- Jan 21Referred to House Committee on Appropriations H.J. 105Minor
- Jan 20First Reading House H.J. 52Introduced
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