SD SB205

Drones are excluded from the standard 4% aircraft registration tax and instead subject to a separate drone-specific registration tax: 1.5% for agricultural drones and 2% for all other drones

Creates a new "drone aviation fund" in the state treasury to receive all drone registration fees and penalties

The Board of Technical Education will administer the drone aviation fund to award grants supporting drone aviation training at South Dakota technical colleges

Failure to pay drone registration tax within 30 days is a Class 2 misdemeanor; late payment beyond 90 days incurs a civil penalty of 0.5% per month, capped at 5% of the tax due

Small unmanned aircraft (as defined in § 50-1-1) are exempt from these registration requirements