81^st Legislative Session _ 2006

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 JANUARY 20, 2006

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

MOTION:     TO INTRODUCE A BILL ON BEHALF OF THE GOVERNOR

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

Senator Knudson, Chair, turned the gavel over to Senator Lintz, Vice-Chair.

         SB 92: revise the formula for determining the amount of the sales, use, and contractors' excise tax refund provided to certain new business facilities.

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Presented by:    Senator Dave Knudson (handout #1)
Proponents:    David Owen, SD Chamber of Commerce & Industry (handouts #2 & 3)
        Jafar Karim, Department of Tourism
        Jane Page, SD Dept. Of Revenue and Regulation
        Dan Nelson, Sioux Falls Area Chamber Of Commerce

MOTION:     AMEND SB 92

92fa

     On page 1 of the printed bill, delete lines 7 to 15 , inclusive, and insert:

"

             (1)      For project costs of less than ten million dollars, there shall be no refund;

             (2)      For project costs of ten or more million dollars but less than twenty fifteen million dollars there shall be a refund of twenty-five percent of the taxes paid;

             (3)      For project costs of twenty fifteen or more million dollars but less than sixty twenty million dollars there shall be a refund of fifty thirty-three percent of the taxes paid;

             (4)      For project costs of sixty twenty or more million dollars but less than six hundred forty million dollars there shall be a refund of fifty percent of the taxes paid;

             (6)    For project costs of sixty million dollars or more but less than six hundred million dollars there shall be a refund of seventy-five percent of the taxes paid; and

             (5) (7)      For project costs of six hundred million dollars and greater there shall be a refund of ninety percent of the taxes paid. ".

     On page 2 , delete lines 1 to 3 , inclusive.

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

MOTION:     DO PASS SB 92 AS AMENDED

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

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

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Senator Lintz, Vice-Chair, turned the gavel over to Senator Knudson, Chair.

         SB 96: exempt religious organizations from sales and use taxes.

The Chair deferred SB 96 until January 27, 2006.

         SB 111: repeal the excise tax on the gross receipts of personal communications system, wireless, and cellular telecommunications companies.

The Chair deferred SB 111 until February 1, 2006.

         SB 127: revise the notice of sale of real property for taxes.

Presented by:    Senator Royal "Mac" McCracken
Proponents:    Michael Kenyon, Department of Revenue and Regulation
Opponents:    Day Breitag, SD Assoc. Of County Officials

Mary Scott, Hughes County Treasurer, answered questions from the committee.

MOTION:     AMEND SB 127

127fa

     On page 1, line 10 of the printed bill, after " deeds " insert " on the first Monday of November ".

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

MOTION:     DO PASS SB 127 AS AMENDED

Moved by:    Nesselhuf
Second by:    Kooistra
Action:    Prevailed by roll call vote.(9-0-0-0)

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

         SB 79: exempt the purchase of farm machinery, farm attachment units, and irrigation equipment from sales and use tax.

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Testimony on SB 79 was heard at a previous committee meeting.

MOTION:     DO PASS SB 79

Moved by:    Nesselhuf
Second by:    Hundstad
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 79 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Kelly
Second by:    Kooistra
Action:    Prevailed by roll call vote.(6-3-0-0)

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

Voting No:    Hundstad, Nesselhuf, Peterson (Jim)

MOTION:     ADJOURN

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

Cindy Tryon

Committee Secretary

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