81st Legislative Session _ 2006

Committee: House Taxation
Thursday, February 02, 2006

                                            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
P    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 JANUARY 31, 2006

Moved by:    Turbiville
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION CORRECT MINUTES OF JANUARY 31, 2006. NAME OF DAN ANDRES TO DON ANDRES.

Moved by:    Koistinen
Second by:    Weems

Action:    Prevailed by voice vote.

MOTION:     TO APPROVE THE MINUTES OF JANUARY 31, 2006 AS CORRECTED.

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

         HB 1069: establish procedures for the forfeiture of money paid by a purchaser of a tax certificate who fails to pay the subsequent taxes.

Presented by:    Representative Joel Dykstra
Previous testimony was taken on HB 1069
Proponents:    Day Breitag, SD Assoc. Of County Officials

MOTION:     AMEND HB 1069

1069fa
     On the printed bill, delete everything after the enacting clause and insert:

"

     Section 1. Notwithstanding the provisions of chapters 10-23, 10-24, and 10-25, no county may sell any tax certificate after July 1, 2006. The county shall be the holder of any tax certificate issued by the county after July 1, 2006. The county treasurer shall continue to serve notice on the owner of record of the real property, publish notice, and attend to the other administrative provisions imposed by chapter 10-23, 10-24, and 10-25. Nothing in this section affects the holder of any existing tax certificate, the method in which the tax certificate is redeemed, or the sale of real property for taxes or assessments."

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

MOTION:     DO PASS HB 1069 AS AMENDED

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

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


Excused:    Van Etten

MOTION:     TO AMEND TITLE OF HB 1069

1069fta
     On page 1, line 1 of the printed bill, delete everything after " to " and insert "prohibit the public sale of tax certificates.".

     On page 1 , delete line 2 .

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

         HB 1154: impose an excise tax on the gross receipts from the sale and use of farm machinery, farm attachment units, and irrigation equipment and to exempt the gross receipts from the sale of farm machinery, farm attachment units, and irrigation equipment from sales and use tax.

Presented by:    Representative Joel Dykstra
Previous testimony was taken on HB 1154
Proponents:    Jane Page, SD Dept. Of Revenue and Regulation

MOTION:     AMEND HB 1154

1154fd
     On page 1, between lines 10 and 11 of the printed bill, insert:

"
    Section 2. An excise tax is hereby imposed on the privilege of the use, storage, and consumption in this state of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes purchased or leased for use in this state at the same rate of the purchase price of said property as imposed pursuant to section 1 of this Act.".


     On page 1 , line 11, after " imposed " insert "at the same rate as imposed by section 1 of this Act".

     On page 3 , delete lines 13 and 14 , and insert:

"

     Section 7. Where applicable and not inconsistent with this Act, the provisions of chapters 10-45 and 10-46, including the exemption, definition, administrative, collection, and enforcement provisions, including penalty and interest, are applicable to the tax imposed by this Act.

     Section 8. The revenue from the tax imposed by this Act shall be deposited in the general fund.

     Section 9. There are exempted from the tax imposed by this Act, gross receipts from the rental of devices primarily used to apply fertilizers and pesticides as defined in §  38-20A-1, for agricultural purposes, if the tax imposed by this Act was paid upon the original purchase of the device.".

     On page 4 , line 5, delete " section 13 of " .

     On page 4 , between lines 13 and 14, insert:

"

     For purposes of this section, the term, person, includes an officer, member, member-manager, partner, general partner, or limited partner of an entity organized pursuant to Title 47 or 48 who has control or supervision of, or is charged with the responsibility for, making tax returns or payments pursuant to this Act.".

On page 7, after line 24, insert:

"      Section 18. That § 10-45-16.1 be amended to read as follows:

     10-45-16.1.   There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, gross receipts from the sale of pesticides, as defined in § 38-20A-1, to be used exclusively by the purchaser for agricultural purposes. Any product or substance to be used in conjunction with the application or use of pesticides for agricultural purposes is also exempt. Such The products or substances include , but are not limited to, adjuvants, surfactants, ammonium sulfate, innoculants, drift retardants, water conditioners, seed treatments, foam markers, and foam dyes. Equipment , other than farm machinery, attachment units, and irrigation equipment uses exclusively for agricultural purposes for the application of pesticides and related products and substances is not exempt. The tax imposed by this chapter on endoparasiticides and ectoparasiticides shall be deposited in the veterinary student tuition and animal disease research and diagnostic laboratory fund to be used for veterinary student tuition grants and the operations and activities conducted by the State Animal Disease Research and Diagnostic Laboratory established in § 13-58-13.

     Section 19. That § 10-46-17.5 be amended to read as follows:

     10-46-17.5.   The use in this state of insecticides, herbicides, pesticides , rodenticides, and fumigants as defined in §  38-20A-1 to be used exclusively for agricultural purposes is specifically exempted from the tax imposed by this chapter. Any product or substance to be used in conjunction with the application or use of pesticides for agricultural purposes is also exempt. These products or substances include adjuvants, surfactants, ammonium sulfate, inoculants, drift retardants, water conditioners, seed treatments, foam markers, and foam dyes. Equipment, other than farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes, for the application of pesticides and related products and substances is not exempt. The tax imposed by this chapter on endoparasiticides and ectoparasiticides shall be deposited in the veterinary student tuition and animal disease research and diagnostic laboratory fund to be used for veterinary student tuition grants and the operations and activities conducted by the State Animal Disease Research and Diagnostic Laboratory established in § 13-58-13.

     Section 20. That § 10-12A-4 be amended to read as follows:

     10-12A-4.   The department may enter into tax collection agreements with any Indian tribe under the provisions of this chapter and chapter 1-24. These agreements may provide for the collection of any of the following state taxes and any tribal taxes imposed by a tribe that are identical to the following state taxes:

             (1)      The retail sales and service tax imposed by chapter 10-45;
             (2)      The use tax imposed by chapter 10-46;
             (3)      The contractors' excise tax imposed by chapter 10-46A;
             (4)      The alternate contractors' excise tax imposed by chapter 10-46B;
             (5)      The cigarette tax imposed by chapter 10-50;
             (6)      The motor vehicle excise tax imposed by chapter 32-5B;
             (7)      The fuel excise tax imposed by chapter 10-47B;
             (8)      The wholesale tax on tobacco products imposed by chapter 10-50;
             (9)      The amusement device tax imposed by chapter 10-58; or
             (10)      The gross receipts tax on visitor related businesses imposed by chapter 10-45D ;
             (11)    The excise tax on farm machinery, attachment units, and irrigation equipment imposed by this Act .

     The agreement may provide for the retention by the department of an agreed-upon percentage of the gross revenue as an administrative fee.

     Section 21. Sections 1 to 20, inclusive, are effective on April 1, 2006.

     Section 22. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.".


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


MOTION:     DO PASS HB 1154 AS AMENDED

Moved by:    Turbiville
Second by:    Olson (Ryan)
Action:    Prevailed by roll call vote.(15-0-0-0)

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

MOTION:     TO AMEND TITLE OF HB 1154

1154fta
     On page 1, line 2 of the printed bill, after " equipment " delete " and " and insert ",".

     On page 1 , line 4, after " tax " insert ", and to declare an emergency".

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

         HB 1229: revise the classification of certain real property used for residential purposes.

Presented by:    Representative Al Novstrup
Proponents:    Mary Worlie, SD Assn. Of Assessing Officers
        Dick Kallemeyen, Director of Equalization, Minnehaha Co
        Jeane Wharton, SD Home Builders Association
        Dean Krogman, SD Assn. Of Realtors
Opponents:    Michael Kenyon, Department of Revenue and Regulation

MOTION:     DO PASS HB 1229

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

MOTION:     SUBSTITUTE MOTION DEFER HB 1229 TO THE 36TH LEGISLATIVE DAY

Moved by:    Dykstra
Second by:    Van Etten
Action:    Failed by roll call vote.(6-9-0-0)

Voting Yes:    Buckingham, Dykstra, Garnos, Turbiville, Van Etten, Koistinen

Voting No:    Glover, Hackl, Hills, Lange, Novstrup, Olson (Ryan), Valandra, Weems, Wick

MOTION:     DO PASS HB 1229

Moved by:    Lange
Second by:    Novstrup
Action:    Prevailed by roll call vote.(9-6-0-0)

Voting Yes:    Glover, Hackl, Hills, Lange, Novstrup, Olson (Ryan), Valandra, Weems, Wick

Voting No:    Buckingham, Dykstra, Garnos, Turbiville, Van Etten, Koistinen

         HB 1110: provide compensation to certain retailers for collecting and remitting the sales tax.

Presented by:    Representative Shantel Krebs
Previous testimony was taken on HB 1110
Proponents:    Jerry Wheeler, SD Retailers Assn.
Opponents:    Jane Page, SD Dept. Of Revenue and Regulation

MOTION:     AMEND HB 1110

1110fb
     On page 1, line 8 of the printed bill, delete " two " and insert "one and one-half".

     On page 1 , line 9, delete " one hundred and fifty " and insert "seventy".

     On page 1 , after line 10, insert:

"

     Section 2. This Act is effective on July 1, 2007.".

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

MOTION:     DO PASS HB 1110 AS AMENDED

Moved by:    Lange
Second by:    Weems
Action:    Prevailed by roll call vote.(12-3-0-0)

Voting Yes:    Buckingham, Garnos, Glover, Hills, Lange, Novstrup, Olson (Ryan), Turbiville, Valandra, Weems, Koistinen, Wick

Voting No:    Dykstra, Hackl, Van Etten

MOTION:     TO CALENDAR HB1151 TO REVISE CERTAIN PROVISIONS CONCERNING THE USE OF CERTAIN REAL PROPERTY SALES TO VALUE OTHER REAL PROPERTY AND TO REVISE THE GENERAL FUND LEVIES OF SCHOOL DISTRICTS.

Moved by:    Dykstra
Second by:    Weems
Action:    Prevailed by roll call vote.(15-0-0-0)

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

MOTION:     TO TABLE HB 1151

Moved by:    Dykstra
Second by:    Garnos
Action:    Prevailed by roll call vote.(14-1-0-0)

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

Voting No:    Weems

         HB 1232: revise certain provisions concerning the freeze on property assessments for disabled and senior citizens.

Presented by:    Representative Elaine Roberts
Proponents:    Travis Benson, Catholic Diocese Of Sioux Falls
        Michael Kenyon, Department of Revenue and Regulation
Opponents:    Representative Don Van Etten

The Chair deferred HB 1232 until Tuesday February 7, 2006.
         HB 1129: exempt certain facilities used for business incubators from property taxation.

Presented by:    Representative Deb Peters
Proponents:    Jim Mirehouse, self, Rapid City
        Rich Naser, SDTBC, Sioux Falls

The Chair deferred HB 1129 until Tuesday February 7, 2006.

         HB 1128: increase the rate of taxation that municipalities may impose on certain goods and services.

Proponents:    Mike Verchio, self, Hill City
        Peggy Woolridge, self, Huron

The Chair deferred HB 1128 and HB 1167 until Tuesday February 7, 2006.

MOTION:     ADJOURN

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

Diane Mellan

____________________________

Committee Secretary
Hal G. Wick, Chair

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