South Dakota Public Utilities Commission sets tax levy for utility companies

PIERRE — South Dakota's Public Utilities Commission on Tuesday set its annual tax levy for Fiscal Year 2020 on utility and telecommunications companies that do business in the state.

The PUC voted to set its Fiscal 2020 Gross Receipts Tax levy at staff's recommended rate of 0.0015 percent, or $250 — whichever is greater — per company. Dollars collected on the levy go toward the PUC's annual budget.

PUC Finance Manager Cindy Kemnitz said that tax rate should ultimately leave the PUC in a financial position comparable to the past few years. She estimated that the tax should bring in approximately $1.76 million in Fiscal 2020, which is less than the PUC's overall 2020 budget of $2 million.

"That could bring our cash balance down slightly," she said.

PUC Vice Chairman Chris Nelson said he has not supported tax levies as high as the one recommended by PUC staff, "but it looks like this levy will maintain the fund really as it has been for the last four or five years."

He and Commissioner Kristie Fiegen voted in favor of the levy. PUC Chair Gary Hanson was absent due to a family emergency.