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
E    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 17, 2006

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

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

Proponents:    Michael Kenyon, Department of Revenue and Regulation
        Representative Larry Rhoden
        Senator Kenneth McNenny
Opponents:    Ronald Olinger, SD Corn Growers Assn.

Previous testimony was heard on HB 1009 at the February 17, 2006, committee meeting.

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MOTION:     DO PASS HB 1009 AS AMENDED

Moved by:    Lintz
Second by:    Hundstad
Action:    Prevailed by roll call vote.(5-3-1-0)

Voting Yes:    Duenwald, Hundstad, Kelly, Lintz, Knudson

Voting No:    Hansen (Tom), Nesselhuf, Peterson (Jim)

Excused:    Kooistra

MOTION:     REMOVE HB 1128 FROM THE TABLE AND IMMEDIATELY CALENDAR

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

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

Excused:    Kooistra

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

Presented by:    Michael Kenyon, Department of Revenue and Regulation (handout #1)
Proponents:    Charlie Flowers, SD Coalition of Schools

MOTION:     AMEND HB 1128

1128fb

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

"
     Section 1. That § 10-6-33.25 be amended to read as follows:

     10-6-33.25.   For the purposes of § 10-6-33.24, the agricultural income value shall be determined using capitalized annual cash rent. The annual cash rent is the annual cash rent, excluding the per acre tax on agricultural land, determined through an analysis of arms-length rental agreements collected within the county in the three years year prior to the year for which the agricultural income value is being determined. The agricultural income value of cropland shall be based on average rents over a three-year period for cropland under natural conditions. The agricultural income value of noncropland shall be based on average rents over a three-year period for noncropland under natural conditions. However, no arms-length rental agreements for irrigated land may be used to determine the annual cash rent pursuant to this section. The annual cash rent shall be capitalized at seven and three-fourths percent.

     The secretary of revenue and regulation may enter into a contract for the collection of cash rent information by county. Cash rent information shall be adjusted by soil survey statistics, if available, and pursuant to § 10-6-33.26. "

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

MOTION:     DO PASS HB 1128 AS AMENDED

Moved by:    Lintz
Second by:    Nesselhuf
Action:    Prevailed by roll call vote.(5-3-1-0)

Voting Yes:    Kelly, Nesselhuf, Peterson (Jim), Lintz, Knudson

Voting No:    Duenwald, Hansen (Tom), Hundstad

Excused:    Kooistra

MOTION:     TO AMEND TITLE OF HB 1128

1128fta

     On page 1, line 1 of the House engrossed bill, delete everything after " Act to " and insert "revise certain provisions concerning the valuation of agricultural land for ad valorem taxation.".

     On page 1 , delete line 2 .

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

MOTION:     TO JOIN THE HOUSE TAXATION COMMITTEE IN SUGGESTING A SUMMER STUDY REGARDING THE TAXATION ON THE TELECOMMUNICATIONS INDUSTRY.

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

MOTION:     ADJOURN

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

Cindy Tryon

Committee Secretary

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