RAPID CITY, S.D. (KOTA) -A bill to keep more severance tax revenue in the county where precious metals are dug up has been sent to Governor Rhoden’s desk.
House Bill 1089 will ensure that after July 1st, 20 percent of the severance tax revenue from precious metals mining will stay within the county where the metals were mined. South Dakota moved in 1981 to allow 20 percent of severance tax revenue from mines to remain in their local counties however imposed a 1 million dollar limit. A limit that was met in Lawrence County in 1994 as explained by the bill’s author State Representative Mary Fitzgerald.
“Lawrence county has not received any mineral severance tax revenue for 32 years,” said Fitzgerald.
The bill will apply to mines that become active after July 1st. Fitzgerald says there is talk that 3 gold mines could begin the permitting process in the near future.
“With gold at over $5000 dollars an ounce I think we can only expect that things like that will happen,” said Fitzgerald.
Fitzgerald’s bill passed the house unanimously but stalled in the senate appropriations committee. Senator Randy Deibert who also represents Lawrence County was able to use a “smokeout” procedure to get the bill delivered to the senate floor where it ended up passing.
“With no votes in the house in committee or with the floor, no opposing testimony in either committee it should have went to the floor. So, I think people that realized it needed to be heard because of that support and no opponents.”
The bill ended up passing on a 23 to 11 vote.
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