South Dakota2026Active

HB1089

Changes to How Precious Metal Tax Money is Shared

Last scannedAug 25, 2026, 3:29 AM

In one sentence

This law changes how South Dakota shares tax money from new mining permits for precious metals between the state and local counties.

Keeps all taxes from mines that started before January 1, 1981, in the state general fund.
Sends eighty percent of taxes to the state general fund for mines permitted on or after July 1, 2026.
Sends twenty percent of those new mine taxes directly to the county where the mining happens.
Removes a rule that stopped counties from getting money once they collected one million dollars from a single miner under permits issued before July 1, 2026.
Requires the secretary of revenue to send tax payments to counties by the end of the month after each reporting period.

Companies or people who hold permits to mine precious metals in South Dakota on or after July 1, 2026.
County treasurers who receive a share of the tax revenue from new mining operations.
The state treasury and general fund which receives eighty percent of these taxes.

This law only applies to precious metals, not other types of minerals or resources.
The text does not say how much total tax revenue will be collected from these new permits in the future.

Plain language

Severance taxation: A tax collected when natural resources like minerals are removed or mined from the ground.
General fund: The main account where the state keeps money to pay for government services and programs.

Official record

Source attached

modify the distributions of revenues collected from severance taxation on new permits.

Official activity