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South Dakota Education Franchise Tax Amendment (2016)

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Education Franchise Tax Amendment
Flag of South Dakota.png
TypeLegislatively referred constitutional amendment
TopicTaxes on the ballot
StatusNot on the ballot


Not on Ballot
Proposed ballot measures that were not on a ballot
This measure was not put
on an election ballot

A South Dakota Education Franchise Tax Amendment did not make the November 8, 2016 ballot in South Dakota as a legislatively referred constitutional amendment. The measure, upon voter approval, would have allowed the state legislature to impose an "an education franchise tax." The tax would have been levied on the profits of corporations doing business in South Dakota, except on the profits of insurance companies already subject to a tax on gross premiums or financial institutions subject to the bank franchise tax. Revenue from the tax would have been dedicated to "improving the salaries of elementary and secondary public school teachers." The legislature would have set the tax rate.[1]

Text of measure

Constitutional changes

See also: Article XI, South Dakota Constitution

The proposed amendment would have added a new section to Article XI of the South Dakota Constitution. The following text would have been added by the proposed measure's approval:[2]

§ 16. The Legislature shall impose an education franchise tax by imposing a tax on the profits of corporations doing business in South Dakota. However, this section does not apply to any insurance company subject to a tax on gross premiums or financial institution subject to the bank franchise tax. The revenue and interest generated by the tax, less the cost of administration, is dedicated to improving the salaries of elementary and secondary public school teachers. The Legislature shall establish the rate of taxation.[3]

Path to the ballot

See also: Amending the South Dakota Constitution

According to the South Dakota Constitution, the state legislature can refer a proposed amendment to the state's voters through a simple majority vote.

The 2015 legislative session ended on March 30, 2015, without the amendment coming up for a vote.[4] However, the amendment was reintroduced during the 2016 session and was not passed.

See also

External links

Footnotes

  1. South Dakota Legislature, "Senate Joint Resolution 2," accessed March 23, 2015
  2. Cite error: Invalid <ref> tag; no text was provided for refs named bill
  3. Note: This text is quoted verbatim from the original source.
  4. Rapid City Journal, "South Dakota's 2015 legislative session comes to an end," March 30, 2015