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 FEBRUARY 15, 2006

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

         HB 1081: exempt from the sales and use taxes certain maintenance items used on agricultural machinery and equipment and to declare an emergency.

Presented by:    Senator Jim Peterson
        Representative Joel Dykstra
Proponents:    Yvonne Taylor, SD Municipal League
        Jane Page, SD Dept. Of Revenue and Regulation

MOTION:     DO PASS HB 1081

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Moved by:    Peterson (Jim)
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

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

Presented by:    Senator Jim Peterson
        Representative Joel Dykstra
Proponents:    Yvonne Taylor, SD Municipal League
        Jane Page, SD Dept. Of Revenue and Regulation

MOTION:     DO PASS HB 1154

Moved by:    Hundstad
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

         HB 1129: exempt certain facilities used for business incubators from property taxation.

Presented by:    Representative Deb Peters
Proponents:    Harry Christianson, Rapid City Econ. Dev. Foundation
        Jim Mirehouse, self, Rapid City

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

MOTION:     DO PASS HB 1129

Moved by:    Kelly
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

MOTION:     PLACE HB 1129 ON CONSENT CALENDAR

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

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

Presented by:    Representative Charles Turbiville

MOTION:     TO TABLE HB 1128

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

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

Voting No:    Knudson

         HB 1167: create a tax relief fund and to dedicate certain sales and use tax revenue received by the state through the Streamlined Sales and Use Tax Agreement.

Presented by:    Representative Hal Wick
        Senator Dave Knudson
Proponents:    Jane Page, SD Dept. of Revenue and Regulation

MOTION:     DO PASS HB 1167

Moved by:    Duenwald
Second by:    Peterson (Jim)
Action:    Prevailed by roll call vote.(9-0-0-0)

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

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

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Presented by:    Representative Elaine Roberts
Proponents:    Kirk Chaffee, self, Sturgis

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

MOTION:     AMEND HB 1232

1232fb

     On page 1, line 6 of the House Taxation Committee engrossed bill, remove the overstrikes from " annually " .

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

MOTION:     DO PASS HB 1232 AS AMENDED

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

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

MOTION:     PLACE HB 1232 ON CONSENT CALENDAR

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

         HB 1098: exempt swine and cattle semen from sales use tax.

Presented by:    Senator Kenneth McNenny
Proponents:    Lorin Pankratz, SD Pork Producers Council
        Mary Duvall, SD Farm Bureau
        Matt McLarty, SD Farmers Union
Opponents:    Jack Magee, Department of Revenue and Regulation

MOTION:     DO PASS HB 1098

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Moved by:    Peterson (Jim)
Second by:    Lintz
Action:    Prevailed by roll call vote.(6-3-0-0)

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

Voting No:    Kelly, Kooistra, Knudson

         HB 1009: create additional classifications of agricultural property and to revise certain provisions concerning the taxation of certain agricultural property.

Presented by:    Representative Larry Rhoden
Proponents:    Kirk Chaffee, SD Assn. of Assessing Officers
        Michael Kenyon, Department of Revenue and Regulation

MOTION:     AMEND HB 1009

1009fi

     On page 1, line 14 of the House engrossed bill, after " criteria " insert " . However, any person owning at least forty acres of land is presumed to meet this criteria. The board of county commissioners may increase the amount of acres necessary to receive this presumption up to two hundred acres ".

     On page 2 , line 23, after " criteria " insert ". However, any person owning at least forty acres of land is presumed to meet this criteria. The board of county commissioners may increase the amount of acres necessary to receive this presumption up to two hundred acres".

     On page 5 , after line 20, insert:

"
     Section 7. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Any class two agricultural land containing a residence is specifically classified for the purpose of taxation. The provisions of § §  10-6-33.20 and 10-6-33.23 do not apply to the valuation of such property.

     Section 8. This Act is effective on July 1, 2007.".

Moved by:    Lintz
Second by:    Peterson (Jim)
Action:    Prevailed by voice vote.

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The Chair deferred final action on HB 1009 until Wednesday, February 22, 2006.

MOTION:     ADJOURN

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

Cindy Tryon

Committee Secretary

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