10-39-45.2. Deductions for determining net profit.
Net profits shall be determined by subtracting from the gross yield, as defined by §10-39-44, the following deductions for costs paid or incurred during the period for which the tax is paid:
(1)The cost of extracting the precious metals;
(2)The cost of transporting the precious metals from the mines to the place or places of reduction, refining, and sale;
(3)The cost of reduction, refining, and sale;
(4)The cost of marketing and delivering the products and the conversion of the products into money;
(5)The cost of maintenance and repairs of all mine machinery, equipment, apparatus, and facilities; all milling, smelting, and reduction works, plants, and facilities; all transportation facilities and equipment; and general administrative buildings and facilities within the State of South Dakota;
(6)All interest costs and all insurance costs paid or accrued on the machinery, equipment, apparatus, works, plants, and facilities, including moneys expended for industrial insurance or workers' compensation, the actual cost of hospital and medical attention, accident benefits, group insurance, pensions, recreation, and payments into pension and profit-sharing trusts and employee welfare;
(7)Depreciation on the cost of the machinery, equipment, apparatus, works, plants, and facilities mentioned in subdivision (5) of this section at the same rates allowable for federal income tax purposes;
(8)The cost of development and exploration work in or about the mine or upon a group of mines when operated as a unit;
(9)The cost of reclamation pursuant to chapter 45-6B;
(10)The cost of royalty payments;
(11)All state and local taxes;
(12)General administrative expense in connection with mining or extracting and milling operations incurred within the State of South Dakota.
Such deductions do not include general administrative costs or salaries incurred outside the State of South Dakota.
Source: SL 1984, ch 78, §3.
Structure South Dakota Codified Laws
Chapter 39 - Mineral Severance Tax
Section 10-39-42 - Definitions.
Section 10-39-43 - Severance tax on gold.
Section 10-39-44 - Gross yield and gross production defined.
Section 10-39-45 - Finished value subject to tax--Allocation between processors.
Section 10-39-45.1 - Imposition of tax on net profit--Rate.
Section 10-39-45.2 - Deductions for determining net profit.
Section 10-39-45.3 - Estimated tax--Filing--Payment.
Section 10-39-45.4 - Annual filing--Payment, refund, or application to next estimate.
Section 10-39-45.5 - Annual statement required--Form--Contents.
Section 10-39-45.6 - Delinquency.
Section 10-39-48 - Failure to file statements as misdemeanor--Determination of tax.
Section 10-39-49 - Promulgation of rules.
Section 10-39-50 - Access to taxpayer's records--Violation as misdemeanor.
Section 10-39-52 - False statement as felony--Forfeiture.
Section 10-39-53 - Exemption of persons severing small amounts.
Section 10-39-54 - Distribution of proceeds.
Section 10-39-54.1 - Transfer of revenue payable to county.
Section 10-39-54.3 - Allocation of funds by county--Purposes.
Section 10-39-54.4 - Annual accounting by county.
Section 10-39-59 - Due dates of quarterly payments.
Section 10-39-60 - Temporary tax not additional tax.