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SD Lawmakers Consider Plan To Change Bank Tax

February 7, 2014, 5:09 AM

SD Lawmakers Consider Plan To Change Bank Tax
PIERRE, SD -

A South Dakota legislative committee is considering Gov. Dennis Daugaard's proposed changes in the state bank franchise tax.

Daugaard has said the tax must be revised to account for changes in how banks have spread their operations among many states. He says changes in the banking industry have made it difficult to identify what share of a bank's income should be apportioned to South Dakota.

The governor says the changes are needed to stabilize the tax and make annual receipts more predictable.

Daugaard says the changes will apply to nine large interstate banks, but will not increase total state tax receipts.

The House State Affairs Committee will hold a hearing Friday on the proposed changes in the bank tax.

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