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No refund may be made unless:
(a) The project includes new construction that adds at least $5,000,000 in taxable value to the city’s property tax base, or an investment in non-realty capital assets of not less than $10,000,000, or if the combination of new construction and non-realty capital assets exceeds $10,000,000;
(b) The facility is used directly in:
A. The manufacture or processing or fabricating or compounding of personal property which is intended to be sold or leased for final use consumption;
B. Data processing, hosting and related services including payroll services, financial transactions processing as those terms are defined by 2002 NAICS; or
C. Research and development in the:
1. Social sciences;
2. Humanities; and
3. Physical, engineering and life sciences as those terms are defined by 2002 NAICS.
(c) The person makes application for the refund from the finance director as set forth in § 37.169; and
(d) The project is not ineligible under § 37.168.
(1992 Code, § 39-174) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
A project shall not be eligible for tax refunds under this subchapter if it is:
(a) Used predominantly for the sale of products at retail to individual consumers;
(b) Used predominantly for residential housing or transient lodging;
(c) Used predominantly to provide health care services; or
(d) Not subject to ad valorem real property taxation or equivalent taxes measured by gross receipts.
(1992 Code, § 39-175) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
Any person desiring to claim a refund pursuant to this subchapter shall make application to the finance director at least 30 days prior to the earlier of the construction commencement or the ordering of equipment to be used in a new business facility. The application shall be submitted on a form prescribed by the finance director. A separate application shall be submitted for each project. Upon the finance director’s approval of the application, the finance director shall notify the applicant that he or she is eligible to submit refund claims and to receive refunds as provided in this subchapter. Refund claims are not assignable or transferable except as collateral or security pursuant to SDCL ch. 57A-9.
(1992 Code, § 39-176) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
The refund shall be 100% of the sales taxes paid to the city with respect to the project. The person receiving a refund shall be entitled to retain 100% of the amount refunded if the project remains in operation in the city for at least five years. If the project ceases operation in the city before the end of the five-year period, the city shall be entitled to repayment of all or a portion of the amount refunded, the refund being prorated based upon the time remaining in the five-year minimum term. Any amount the city is entitled to recover under this section shall constitute a debt to the city and a lien in favor of the city upon all property and rights to property whether real or personal belonging to the claimant and may be recovered in an action of the debt.
(1992 Code, § 39-177) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
Any person who is eligible for a refund pursuant to this subchapter shall submit a return to the department no more frequently than on or before the last day of each month and no less frequently than on or before the last day of each month following each calendar quarter. The finance director shall determine and pay 95% of the amount of the tax refund within 30 days of receipt of the return. Five percent of the refund shall be withheld by the department. No interest shall be paid on the refund amount.
(1992 Code, § 39-178) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
The amounts withheld by the department in accordance with § 37.171 shall be retained until the project has been completed and the claimant has met all the conditions of this subchapter, at which time all sums retained shall be paid to claimant.
(1992 Code, § 39-179) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
If any claim has been fraudulently presented or supported as to any item in the claim, or if the claimant fails to meet all the conditions of this subchapter, then the claim may be rejected in its entirety and all sums previously refunded to the claimant shall constitute a debt to the city and a lien in favor of the city upon all property and rights to property whether real or personal belonging to the claimant and may be recovered in an action of debt.
(1992 Code, § 39-180) (Ord. 42-05, passed 4-18-2005; Ord. 60-07, passed 5-7-2007)
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