SD HB1245

Municipalities may impose a gross receipts tax up to 1% for capital improvement projects, requiring approval by a five-member capital improvement board (one governing body member, four residents) and at least 60% voter approval at election

Tax revenue must be deposited into a special capital outlay fund restricted to acquiring/leasing property, plant assets, or equipment, or constructing/repairing municipally-owned real property

Tax ordinances expire after 60 months or when the municipality collects the minimum amount specified in the ordinance, whichever occurs first

Municipalities must wait 24 months after a previous capital improvement tax collection period ends before imposing a new tax under this authority

Completed projects funded through this mechanism may be transferred to the county or school district in which the municipality is situated