Currently delinquent gaming taxes are not collected by the same process as other delinquent taxes. That situation will change if Senate Bill 146 continues to successfully clear hurdles.
Larry Eliason is executive secretary of the South Dakota Commission on Gaming. He asked the House State Affairs Committee for an emergency clause, to get the collection process in place sooner than July 1. An emergency clause requires a two-thirds vote from the legislature.
“We did find that there is an inconsistency in the tax collection statutes and that the same legal process and procedures that are currently in place for many other taxes, especially sales tax, don’t exist in the event that a gaming tax becomes delinquent,” he says.
Eliason says currently the gaming commission has to file suit, get a judgment, and then get a lien. Under the proposed law, the commission can place a lien against the property of the taxpayer and file a notice of tax lien with the register of deeds.
Then the commission on gaming can ask the county treasurer to issue a distress warrant. The county sheriff can then collect in same manner as with other delinquent taxes.
House State Affairs passed the bill unanimously. It now goes to the full House and then to the Governor for his signature.