PIERRE, S.D. (KELO) — A state lawmaker plans to ask the Legislature to double the duration of tax compacts that South Dakota state government can have with tribal governments.
Republican Sen. Michael Rohl said he’ll introduce the legislation during the 2024 session that opens January 9. It would allow the tax-collection agreements to run up to 10 years. State law currently limits them to no more than five years.
Rohl co-chairs the Legislature’s State-Tribal Relations Committee. His proposal received the committee’s endorsement during a September 22 meeting at the Yankton Sioux Tribe’s Fort Randall Casino and Hotel in Lake Andes.
State government has agreements regarding sales, use, tourism, and contractor’s excise taxes with five of the nine tribal governments that have reservation areas in South Dakota, according to the state Department of Revenue website. There also are agreements with two tribes on use tax and contractor’s excise tax, but not sales tax.
There also is an agreement with the Flandreau Santee Sioux Tribe regarding cigarette excise tax, according to state Revenue Secretary Michael Houdyshell.
State laws allow distribution of state tax revenue to tribal governments, with each agreement covering a special jurisdiction area. South Dakota’s governor and attorney general must approve each agreement.
“While it will still allow shorter agreements to be made, by extending the allowable time frame up to ten years it will not only save the Department of Revenue and each tribal government time and resources on negotiating, which can take several years to finalize,” Rohl said. “It will also allow negotiations that rely on census data to have new census data for each negotiation, if the Department of Revenue, with the consent of the attorney general and governor, and the tribal government agree to a max-length deal.”
Rohl said the proposed change would also put the tax compacts in line with some of the state-tribal gaming agreements that now have longer 10-year durations.
There are federally-approved gaming compacts in place with tribal governments for Crow Creek Sioux, Flandreau Santee Sioux, Lower Brule Sioux*, Oglala Sioux, Rosebud Sioux*, Sisseton Wahpeton Oyate, Standing Rock Sioux**, and Yankton Sioux***.
The governor plans to sign a new gaming compact with the Rosebud Sioux tribal government on Thursday.
*–Currently two-years duration.
**–Currently three-years duration.
***–Currently four-years duration.