81st Legislative Session _ 2006

Committee: Senate Taxation
Wednesday, February 08, 2006

                                            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 3, 2006

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

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

Previous testimony was heard on SB 111 on February 1, 2006.
Presented by:    Senator Ed Olson
Opponents:    Greg Dean, SD Telecommunications Assn.

Michael Kenyon, Dept of Revenue and Regulation, answered questions from the committee.

MOTION:     AMEND SB 111


111fc
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That § 10-33A-4 be amended to read as follows:

     10-33A-4.   There is hereby imposed a tax of four percent upon the gross receipts of telecommunications services, as defined in § 10-33A-2, that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates. Notwithstanding any other provision of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile telecommunication services shall be administered in accordance with 4 U.S.C. §§ 116-126 as of July 28, 2000. After January 1, 2006, the total amount of revenue imposed by this chapter for any twelve month period may not exceed the total amount of revenue collected for the twelve month period ending December 31, 2005. "


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

Voting No:    Duenwald, Hundstad, Kelly, Kooistra, Nesselhuf, Peterson (Jim), Lintz, Knudson

Excused:    Hansen (Tom)

MOTION:     DEFER SB 111 TO THE 36TH LEGISLATIVE DAY

Moved by:    Lintz
Second by:    Kelly
Action:    Prevailed by roll call vote.(7-2-0-0)

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

Voting No:    Nesselhuf, Peterson (Jim)

         HB 1206: provide contractors' excise, sales, and use tax refunds for the filming of certain motion pictures, documentaries, or television films.

Presented by:    Representative Cooper Garnos
        Senator Stanford Adelstein

Proponents:    Representative Charles Turbiville
        Mark Remily, Aberdeen, Self
        Senator Jim Lintz
Opponents:    Jane Page, SD Dept. of Revenue and Regulation

MOTION:     AMEND HB 1206

1206fb
     On page 2, line 13 of the House engrossed bill, after " dollars " insert "in taxable costs".

     On page 2 , line 17, after " dollars " insert "in taxable costs".

     On page 2 , line 18, delete " project cost " and insert "taxable project costs in excess of two hundred fifty thousand dollars".

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

MOTION:     AMEND HB 1206

1206fc
     On page 1, line 6 of the House engrossed bill, after "documentary," insert "television advertisement,".

     On page 2 , line 1, after " documentary, " insert "television advertisement,".

     On page 2 , line 9, after " documentary, " insert "television advertisement,".

     On page 2 , line 16, after " documentary, " insert "television advertisement,".

     On page 2 , line 20, after " documentary, " insert "television advertisement,".

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

MOTION:     AMEND HB 1206

1206fd
     On page 4, after line 24 of the House engrossed bill, insert:

"

     Section 14. This Act is repealed on June 30, 2011.".

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

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

Voting No:    Kooistra, Nesselhuf, Lintz

MOTION:     DO PASS HB 1206 AS AMENDED

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

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

Voting No:    Hundstad

MOTION:     TO AMEND TITLE OF HB 1206

1206ftb
     On page 1, line 2 of the House engrossed bill, after " documentaries, " insert "television advertisements,".

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

         SB 121: provide for the assessment of severed mineral interests and to provide additional funding for the general fund of counties and school districts.

Presented by:    Senator Eric Bogue
Proponents:    Larry Nelson, SD Municipal League
        David Blair, East River Electric Power Cooperative, Inc.

        Ed Anderson, Rural Electric Assn, SD
        Dennis Davis, SD Assn of Rural Water Systems
        Greg Dean, SD Telecommunications Assn.
Opponents:    Kevin V. Schieffer, DM&E Railroad
        Jim Keyes, Associated General Contractors of SD

MOTION:     AMEND SB 121

121cb
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section  1.  Electric utilities, public utilities, telecommunication companies, and rural water systems have the right to the use of the railroad right-of-way for the placement of facilities, upon payment of a reasonable fee, and subject to reasonable regulation and negotiation in good faith as to location, placement, and compensation when the placement of facilities is outside the public right of way."


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

MOTION:     TO AMEND TITLE OF SB 121

121ctb
     On page 1, line 1 of the printed bill, delete everything after " An Act to " and insert "clarify provisions regarding the use of railroad rights-of-way by utility companies.".

     On page 1 , delete line 2 .

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

MOTION:     AMEND SB 121

121fd
     On the printed bill, delete everything after the enacting clause and insert:

"

     Section 1. Recognized electric utilities, public utilities, telecommunication companies, and rural water systems duly organized under the laws of South Dakota have the right to traverse the railroad right-of-way with underground facilities, subject to reasonable railroad regulation and terms and conditions as to prevention of present and future railroad operational interference, placement, safety, liability, maintenance, reclamation, administrative costs, and compensation."

Moved by:    Hansen (Tom)
Second by:    Duenwald
Action:    Prevailed by roll call vote.(5-4-0-0)

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

Voting No:    Hundstad, Kooistra, Nesselhuf, Lintz

MOTION:     DEFER SB 121 TO THE 36TH LEGISLATIVE DAY

Moved by:    Kooistra
Second by:    Kelly
Action:    Failed by roll call vote.(4-5-0-0)

Voting Yes:    Kelly, Kooistra, Nesselhuf, Peterson (Jim)

Voting No:    Duenwald, Hansen (Tom), Hundstad, Lintz, Knudson

MOTION:     DO PASS SB 121 AS AMENDED

Moved by:    Hundstad
Second by:    Hansen (Tom)
Action:    Prevailed by roll call vote.(6-3-0-0)

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

Voting No:    Kelly, Kooistra, Nesselhuf

MOTION:     ADJOURN

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


Cindy Tryon

____________________________

Committee Secretary
Dave Knudson, Chair

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