Technology

This bill exempts sales tax on enterprise information technology equipment and computer software purchased for use in South Dakota's qualified data centers. It directly affects data center owners, operators, or tenants (referred to as "qualified businesses") who meet specific criteria, such as having facilities classified as real property subject to taxation and equipped with fire suppression systems. The key mechanism requires businesses to submit documentation to the Department of Revenue to verify eligibility and maintain annual certification. To retain the exemption, businesses must also ensure electric service agreements avoid shifting costs to other customers and confirm water usage compatibility with local providers. The tax exemption applies to equipment like servers, cooling systems, power infrastructure, and security systems used exclusively in these facilities.

SB 127 limits data center operations to reduce disruptions for nearby residents. It prohibits new data centers within one mile of residential areas (though local governments can set stricter rules) and caps continuous noise at 45 decibels near residential property lines. The bill defines data centers broadly to include cloud services, cryptocurrency mining, and streaming platforms. Violations would be deemed legal nuisances, allowing state attorneys or affected residents to seek court orders to stop the disruptions.

SB 66 prohibits South Dakota election officials from using automatic tabulating equipment or electronic ballot marking systems for any election. The bill requires all ballots to be hand-counted manually in public view, replacing electronic processing with paper-based counting. It directly affects county auditors, precinct election boards, and all election administrators responsible for ballot handling and counting. The law mandates that ballots must be printed on paper (not processed electronically), with all vote counts performed manually after polls close, eliminating electronic tabulation entirely.