80th Legislative Session _ 2005

Committee: House Taxation
Tuesday, February 15, 2005

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Buckingham
P    Dykstra
P    Garnos
P    Glover
P    Hackl
P    Hills
P    Lange
P    Novstrup
P    Olson (Ryan)
P    Turbiville
E    Valandra
P    Van Etten
P    Weems
P    Koistinen, Vice-Chair
P    Wick, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Wick

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 10, 2005

Moved by:    Dykstra
Second by:    Weems
Action:    Prevailed by voice vote.

         HB 1236: limit the annual increase of property taxes that may be levied for the capital outlay fund of school districts.

Testimony given on HB 1236 at the February 8, 2005 meeting.


MOTION:     AMEND HB 1236

1236fd
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That chapter 13-16 be amended by adding thereto a NEW SECTION to read as follows:

     This section only applies to the property taxes imposed for the capital outlay fund of a school district. If the taxable valuation of a school district has increased from the previous year and the school district is requesting an amount of revenue payable from taxes on real property for the capital outlay fund that is more than the amount requested for the previous fiscal year, the school district shall adopt a resolution stating that the school district is adopting a budget levy request that produces more revenue for the capital outlay fund than it did in the previous fiscal year."

Moved by:    Dykstra
Second by:    Weems
Action:    Failed by voice vote.

MOTION:     DEFER HB 1236 TO THE 41ST LEGISLATIVE DAY

Moved by:    Dykstra
Second by:    Van Etten
Action:    Prevailed by roll call vote.(13-0-2-0)

Voting Yes:    Buckingham, Dykstra, Garnos, Glover, Hackl, Hills, Lange, Novstrup, Turbiville, Van Etten, Weems, Koistinen, Wick

Excused:    Olson (Ryan), Valandra

         HB 1180: revise certain provisions concerning business improvement districts and to exempt general occupational tax receipts from the sales and gross receipts taxes.

Presented by:    Representative Donna Schafer
Proponents:    Harry Christianson, Convention Visitors Bureau
        George Valentine, SD Innkeepers Assn.
        Lorin Pankratz, Visitor Industry Alliance
        David Owen, SD Chamber of Commerce & Industry
        Yvonne Taylor, SD Municipal League
        Patrick McElgunn Jr., Rapid City Area Of Chamber Of Commerce

MOTION:     AMEND HB 1180

1180fd
     On page 3, line 14 of the printed bill, delete " or on rented hotel and motel rooms and units " and insert " or based on rooms rented by any lodging establishment to transient guests as defined in §  10- 45-7. If the occupational tax is based on rooms rented by a lodging establishment, the tax shall be imposed on the transient guest and such tax may not exceed two dollars per occupied room per night. However, no occupational tax may be imposed on any transient guest who has been offered a room by a lodging establishment on a complimentary basis and no fee or rent was charged for such room. ".

     On page 3 , delete line 15.

     On page 3 , line 16, delete " may not exceed two dollars per occupied room per night. " .

     On page 5 , delete lines 10 to 17 , inclusive.

Moved by:    Van Etten
Second by:    Weems
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1180 AS AMENDED

Moved by:    Turbiville
Second by:    Van Etten
Action:    Prevailed by roll call vote.(14-0-1-0)

Voting Yes:    Buckingham, Dykstra, Garnos, Glover, Hackl, Hills, Lange, Novstrup, Olson (Ryan), Turbiville, Van Etten, Weems, Koistinen, Wick

Excused:    Valandra

MOTION:     PLACE HB 1180 ON CONSENT CALENDAR

Moved by:    Turbiville
Second by:    Van Etten
Action:    Prevailed by voice vote.

         HB 1141: revise certain provisions on how real property sales are used to assess real property and to lower the general fund levies of school districts.

Presented by:    Representative Al Koistinen

Proponents:    Senator Dave Knudson
        Michael Kenyon, Department of Revenue and Regulation
        David Owen, SD Chamber of Commerce & Industry
        John Brown, Nat'l Federation Of Independent Business
        Dan Nelson, Sioux Falls Chamber of Commerce
        Dick Kallemeyen, Director of Equalization, Minnehaha Co
Opponents:    Ronald Olinger, SD Corn Growers Assn.
        Senator Jim Lintz
        Senator Kenneth McNenny
        Roger Lee, Kingsbury Asessment Task Force

MOTION:     DEFER HB 1141 TO THE 41ST LEGISLATIVE DAY

Moved by:    Lange
Second by:    Glover
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1141

1141fa
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 10-6-74 be amended to read as follows:

     10-6-74.   Any real property which sells for more than one hundred fifty sixty percent of its assessed value, may not be used for the purpose of valuing other real property. The sale of any real property which is not used for the purpose of valuing other real property pursuant to this section may not be used in any sales ratio study.

     Section 2. For taxes payable in 2007, the levy for the general fund of a school district, as provided in §  10-12-42, shall be lowered by:

             (1)      Eleven cents per thousand dollars of taxable valuation subject to the limitations on agricultural property as provided in subdivision (2) of this section, owner-occupied property as provided for in subdivision (3) of this section, and nonagricultural acreage property as provided for in subdivision (4) of this section;
             (2)      Three cents per thousand dollars of taxable valuation for agricultural property;
             (3)      Five cents per thousand dollars of taxable valuation for an owner-occupied single-family dwelling as defined in § 10-13-40; and
             (4)      Three cents per thousand dollars of taxable valuation for nonagricultural acreage property.

     This rate reduction is in addition to any other adjustment made by the Eighty-first Legislature of the State of South Dakota to the levy for the general fund of a school district as provided in §  10- 12-42.

     Section 3. That § 10-6-74 be amended to read as follows:

     10-6-74.   Any real property which sells for more than one hundred fifty one hundred seventy-five percent of its assessed value, may not be used for the purpose of valuing other real property. The sale of any real property which is not used for the purpose of valuing other real property pursuant to this section may not be used in any sales ratio study.

     Section 4. That § 10-6-74 be amended to read as follows:

     10-6-74.   Any real property which sells for more than one hundred fifty one hundred ninety percent of its assessed value, may not be used for the purpose of valuing other real property. The sale of any real property which is not used for the purpose of valuing other real property pursuant to this section may not be used in any sales ratio study.

     Section 5. That § 10-6-74 be amended to read as follows:

     10-6-74.   Any real property which sells for more than one hundred fifty two hundred ten percent of its assessed value, may not be used for the purpose of valuing other real property. The sale of any real property which is not used for the purpose of valuing other real property pursuant to this section may not be used in any sales ratio study.

     Section 6. That § 10-6-74 be repealed.

     10-6-74.   Any real property which sells for more than one hundred fifty percent of its assessed value, may not be used for the purpose of valuing other real property. The sale of any real property which is not used for the purpose of valuing other real property pursuant to this section may not be used in any sales ratio study.

     Section 7. Section 3 of this Act is effective on July 1, 2007.

     Section 8. Section 4 of this Act is effective on July 1, 2009.

     Section 9. Section 5 of this Act is effective on July 1, 2011.

     Section 10. Section 6 of this Act is effective on July 1, 2012."


Moved by:    Koistinen
Second by:    Weems
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1141 AS AMENDED

Moved by:    Weems
Second by:    Buckingham
Action:    Was not acted on.

MOTION:     CALL THE QUESTION

Moved by:    Buckingham
Second by:    Dykstra
Action:    Prevailed by voice vote.

ORIGINAL MOTION: DO PASS HB 1141 AS AMENDED

Moved by:    Weems
Second by:    Buckingham
Action:    Prevailed by roll call vote.(8-6-1-0)

Voting Yes:    Buckingham, Dykstra, Novstrup, Olson (Ryan), Van Etten, Weems, Koistinen, Wick

Voting No:    Garnos, Glover, Hackl, Hills, Lange, Turbiville

Excused:    Valandra

         SB 2: revise the procedure for assessing certain agricultural property.

Proponents:    Roger Lee, Kingsbury Asessment Task Force
        Faye Dubbelde, Turner County, Parker, SD

The Chair deferred SB 2 until Thursday, February 17, 2005.

The Chair deferred SB 78 until Thursday, February 17, 2005.

MOTION:     ADJOURN

Moved by:    Turbiville
Second by:    Hills
Action:    Prevailed by voice vote.



Diane Mellan

____________________________

Committee Secretary
Hal G. Wick, Chair

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