80^th Legislative Session _ 2005

Committee: Senate Taxation

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Duenwald
P    Hansen (Tom)
P    Hundstad
P    Kelly
P    Kooistra
P    Nesselhuf
P    Peterson (Jim)
P    Lintz, Vice-Chair
P    Knudson, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Knudson

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 18, 2005.

Moved by:    Lintz
Second by:    Hundstad
Action:    Prevailed by voice vote.

         HB 1142: provide sales and use tax refunds to certain fabricators.

Presented by:    Representative Lou Sebert
Proponents:    David Owen, SD Chamber of Commerce & Industry
        Mark Buche, self, Mitchell
        Scott Peterson, Department of Revenue and Regulation
        Larry Zikmund, Associated General Contractors - Building Chapter

MOTION:     DO PASS HB 1142

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Moved by:    Hundstad
Second by:    Nesselhuf
Action:    Prevailed by roll call vote.(8-0-1-0)

Voting Yes:    Duenwald, Hansen (Tom), Hundstad, Kelly, Kooistra, Nesselhuf, Lintz, Knudson

Excused:    Peterson (Jim)

MOTION:     PLACE HB 1142 ON CONSENT CALENDAR

Moved by:    Hansen (Tom)
Second by:    Duenwald
Action:    Prevailed by voice vote.

         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 (Document #1)
        Lorin Pankratz, VIA
        Pat McEglann, Chamber of Commerce

MOTION:     DO PASS HB 1180

Moved by:    Kelly
Second by:    Lintz
Action:    Prevailed by roll call vote.(8-1-0-0)

Voting Yes:    Duenwald, Hansen (Tom), Hundstad, Kelly, Nesselhuf, Peterson (Jim), Lintz, Knudson

Voting No:    Kooistra

         HB 1122: clarify that agents for property owners may make certain deductions from gross receipts.

Presented by:    David Owen, SD Chamber of Commerce & Industry (Document #2)
Proponents:    Scott Peterson, Department of Revenue and Regulation

MOTION:     AMEND HB 1122

1122fb

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     On the House Taxation Committee engrossed bill, delete everything after the enacting clause and insert:

"      Section 1. That section 2 of House Bill 1261 as previously enacted by the 2005 South Dakota Legislature be amended to read as follows:

     For the purposes of this Act, the term, new business facility, means a new building or structure or the expansion of an existing building or structure , including a power generation facility, the construction of which is subject to the contractor's excise tax pursuant to chapter 10-46A or 10-46B. A new business facility does not include any building or structure:

             (1)    Used predominantly for the sale of products at retail, other than the sale of electricity at retail, to individual consumers;

             (2)    Used predominantly for residential housing or transient lodging;

             (3)    Used predominantly to provide health care services; or

             (4)    That is not subject to ad valorem real property taxation or equivalent taxes measured by gross receipts.

     Section 2. That § 10-45B-6 be amended to read as follows:

     10-45B-6.   Any person desiring to claim a refund pursuant to § 10-45B-2 this chapter shall apply for a permit from the secretary at least thirty days prior to commencement of the project the construction date. However, any project with a construction date between February 1, 2005, and July 1, 2005, that would otherwise qualify for a refund shall apply for a permit by August 1, 2005 . The application for a permit shall be submitted on a form prescribed by the secretary. A separate application shall be made and submitted for each project. Upon approval of the application, the secretary shall issue a permit entitling the applicant to submit refund claims as provided by §§ 10- 45B-7 and 10-45B-8. Such permit or refund claims are not assignable or transferable except as collateral or security pursuant to chapter 57A-9. "

Moved by:    Kelly
Second by:    Kooistra
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1122 AS AMENDED

Moved by:    Kelly
Second by:    Hansen (Tom)
Action:    Prevailed by roll call vote.(9-0-0-0)

Voting Yes:    Duenwald, Hansen (Tom), Hundstad, Kelly, Kooistra, Nesselhuf, Peterson (Jim), Lintz, Knudson

MOTION:     TO AMEND TITLE OF HB 1122

1122ftb

     On page 1, line 1 of the House Taxation Committee engrossed bill, delete everything after " Act to " and insert "provide certain contractor's excise, sales, and use tax refunds.".

     On page 1 , delete line 2 .

Moved by:    Kelly
Second by:    Kooistra
Action:    Prevailed by voice vote.

DISCUSSION ON SUMMER STUDY TOPICS
The chair invited the committee members to present ideas to be considered for summer studies. The chair will make the following suggestions: assessment equity, economic development incentives, and tax seminars for legislators.

MOTION:     ADJOURN

Moved by:    Lintz
Second by:    Kelly
Action:    Prevailed by voice vote.

Cindy Tryon

Committee Secretary

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