(A) Purpose. The purpose of this section is to provide additional needed revenue for this municipality of by imposing a municipal retail sales and use tax pursuant to the powers granted to this municipality by the State of South Dakota, by SDCL Chapter 10-52 entitled Uniform Municipal Non-Ad Valorem Tax Law, and acts amendatory thereto.
(B) Enactment of tax.
(1) There is hereby imposed as a municipal retail occupational sales and service tax upon the privilege of engaging in business a tax measured by 1% on the gross receipts of all persons engaged in business within the jurisdiction of this municipality who are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL Chapter 10-45 and acts amendatory thereto.
(2) Tax will not be applied to items that may be specifically exempt under state law. Items exempted from municipal tax include: farm machinery and irrigation equipment, parts or repairs for farm machinery, agricultural animal health products and medicine, passenger transportation service, collection and disposal of solid waste, veterinarian and animal specialty services, and air transportation.
(C) Use tax. In addition there is hereby imposed an excise tax on the privilege of use, storage and consumption, within the jurisdiction of this municipality, of tangible personal property or services purchased 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 Chapter 10-46, and acts amendatory thereto.
(D) Collection. Such tax is levied pursuant to authorization granted by SDCL Chapter 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.
(E) Interpretation. It is declared to be the intention of this section 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 Chapter 10-45 and acts amendatory thereto and the South Dakota Use Tax, SDCL Chapter 10-46 and acts amendatory hereto, and that this shall be considered a similar tax except for the rate thereof to that tax.
(F) Penalty.
(1) Any person failing or refusing to make reports or payments prescribed by this section 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 $500 or imprisoned in the municipal jail for 30 days or both such fine and imprisonment.
(2) In addition, all such collection remedies authorized by SDCL Chapter 10-45, and acts amendatory thereto, and SDCL Chapter 10-46, and acts amendatory thereto are hereby authorized for the collection of these excise taxes by the Department of Revenue and Regulation.
Penalty, see § 10.99