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Bill To Stabilize SD Bank Tax Headed To Governor

March 4, 2014, 5:21 PM

Bill To Stabilize SD Bank Tax Headed To Governor
PIERRE, SD -

Gov. Dennis Daugaard's plan to stabilize the state bank tax has won final approval from the South Dakota Legislature.

The Senate voted 34-1 to pass the measure, which has already been approved by the House. The bill will become law if signed by the governor.

The measure is designed to protect state revenue from the bank tax by taking into account changes in the way large banks provide services from locations in many states.

The bill would calculate South Dakota's share of bank receipts based on where a customer is located, not where the bank activity takes place.

Officials say the changes are expected to stabilize revenues at $8 million to $10 million a year. They say that without the changes, it could fall to about $4 million a year.

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