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TITLE XIII

MUNICIPAL SALES AND SERVICE TAX

Chapter 13.01     Establishment of Municipal Sales and Service Tax

13.0101     Purpose

The purpose of this ordinance is to provide additional needed revenue for the Municipality of Scotland, Bon Homme County, South Dakota, by imposing a municipal retail sales and use tax pursuant to the powers granted to the municipality by the State of South Dakota, by SDCL 10-52 entitled Uniform Municipal Non-Ad Valorem Tax Law, and acts amendatory thereto.

13.0102     Effective Date and Enactment of Tax

From and after the first day of January, 2005 there is hereby imposed as a municipal retail occupational sales and service tax upon the privilege of engaging in business a tax measured by two and no/100 percent (2.00%) on the gross receipts of all persons engaged in business within the jurisdiction of the Municipality of Scotland, Bon Homme County, South Dakota, who are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL 10-45 and acts amendatory thereto.

13.0103     Use Tax

In addition there is hereby imposed an excise tax on the privilege of use, storage and consumption within jurisdiction of the municipality of tangible personal property or services purchased from and after the first of January, 2004, at the same rate as the municipal sales and service tax upon all transactions or use, storage and consumption which are subject to the south Dakota Use Tax Act, SDCL 10-46. And acts amendatory thereto.

13.0104     Collection

Such tax is levied pursuant to authorization granted by SDCL 10-52 and acts amendatory thereto, and shall be collected by the South Dakota Department of Revenue and Regulation in accordance with the same rules and regulations applicable to the State Sales Tax and under such additional rules and regulations as the Secretary of Revenue and Regulation of the State of South Dakota shall lawfully prescribe.

13.0105     Interpretation

It is declared to be the intention of this ordinance and the taxes levied hereunder that the same shall be interpreted and construed in the same manner as all sections of the South Dakota Retail Occupational Sales and Service act, SDCL 10-45 and acts amendatory thereto and the South Dakota Use Tax, SDCL 10-46 and acts amendatory hereto, and that this shall be considered a similar tax except for the rate thereof to that tax.

13.0106     Penalty

Any person failing or refusing to make reports or payments prescribed by this ordinance and the rules and regulations relating to the ascertainment and collection of the tax herein levied shall be guilty of a misdemeanor and upon conviction shall be fined not more than $200 or imprisoned in the municipal jail for thirty (30) days or both such fine and imprisonment. In addition, all such collection remedies authorized by SDCL 10-45, and acts amendatory thereto, and SDCL 10-46, and acts amendatory thereto are hereby authorized for the collection of these excise taxes by the Department of Revenue and Regulation.

13.0107     Separability

If any provision of this ordinance is declared unconstitutional or the application thereof to any person or circumstances held invalid the constitutionality of the remainder of the ordinance and applicability thereof to other persons or circumstances shall not be affected thereby.

13.0108     Use of Revenue from Rate Over One Percent up to Two Percent

Any revenues received under Section 2 and 3 of this Article in excess of one (1) percent up to two (2) percent, may be used only for the purpose of capital improvements, land acquisition, and debt retirement. These expenditures may be financed through sale-leaseback agreement.