82nd Legislative Session _ 2007

Committee: House Taxation
Tuesday, January 30, 2007

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bradford
P    Faehn
P    Feinstein
P    Juhnke
P    Lust
P    Noem
P    Novstrup (Al)
P    Olson (Ryan), Vice-Chair
P    Peters
P    Thompson
P    Turbiville
P    Van Etten
P    Weems
P    Wick
P    Dykstra, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Dykstra.

MOTION:     TO APPROVE THE MINUTES OF JANUARY 23, 2007

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

          HB 1087: exempt certain materials provided by persons letting realty improvement contracts from the contractor's excise tax.
        
A prior bill hearing was held.


Opponents:    Jan Talley, SD Dept of Revenue and Regulation

MOTION:     AMEND HB 1087

1087fe
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. Any owner who directly furnishes all or a portion of the materials for a contract related to the construction or improvement to a single-family dwelling after June 30, 2007, may receive a full or partial refund of the contractor's excise tax imposed pursuant to chapter 10-46A on owner supplied materials on which the contractor's excise tax and sales tax have been paid.

     Section 2. Terms used in used in this Act, inclusive, mean:

             (1)      "Department," the Department of Revenue and Regulation;

             (2)      "Owner furnished materials," the materials furnished by the owner during the improvement or construction of the single-family dwelling;

             (3)      "Owner project cost," the amount paid in money by the owner for owner furnished materials used in the contract for which the owner has documented receipts;

             (4)    "Secretary," the secretary of the Department of Revenue and Regulation;

             (5)      "Single-family dwelling," any dwelling or portion thereof that is owned and occupied by the owner and the dwelling is the owner's principal place of residence as defined in §  12-1-4. The term also includes any dwelling or portion thereof that is under construction or reconstruction by the owner and the dwelling when completed will be the owner's principal place of residence as defined in §  12-1-4. For the purposes of this subdivision, the term, single-family dwelling, means any house, manufactured home, or mobile home, and includes the garage, whether attached or unattached.

     Section 3. Any owner may apply for and obtain a refund for contractor's excise taxes imposed and paid under the provisions of chapter 10-46A for owner furnished materials for the construction of or improvement to a single-family dwelling as defined by this Act. The refund pertains only to owner project costs incurred and paid by the owner after June 30, 2007, for which the owner has documented receipts. The amount of the tax refund shall be one hundred percent of the contractor's excise taxes attributed to the owner furnished materials, however, the refund may not exceed two hundred dollars per single-family dwelling per calendar year.

     Section 4. Any person desiring to claim a refund pursuant to this Act shall submit an application and supporting documentation as required by the secretary within six months of the owner incurring

the owner project cost. The application shall be submitted on a form prescribed by the secretary. Upon approval of the application, the secretary shall send the refund to the owner. The secretary may deny any application if the owner has failed to provide information or documentation requested or considered necessary by the secretary to determine the validity of the application.

     Section 5. The secretary may promulgate rules, pursuant to chapter 1-26, concerning the procedures for filing refund applications and the requirements necessary to qualify for a refund."


Moved by:    Peters
Second by:    Turbiville
Action:    Failed by voice vote.

 MOTION:     DEFER HB 1087 TO THE 41ST LEGISLATIVE DAY

Moved by:    Wick
Second by:    Van Etten
Action:    Prevailed by roll call vote.(12-1-2-0)

Voting Yes:    Bradford, Faehn, Juhnke, Lust, Noem, Novstrup (Al), Olson (Ryan), Thompson, Turbiville, Van Etten, Weems, Wick

Voting No:    Dykstra

Excused:    Feinstein, Peters

          HB 1131: increase the amount of funding for conservation and value-added agriculture purposes from certain unclaimed motor fuel tax refunds.

Presented by:    Representative Larry Tidemann
Proponents:    Senator Julie Bartling
        Angela Ehlers, SD Association of Conservation Districts (Handouts #1)
        Jack Majeres, SD Association of Conservation Districts
        Rick Vallery, SD Wheat Inc.
        Brenda Forman, SD Assn. Of Cooperatives, SD Cattlemen's Association
        Mary Duvall, SD Farm Bureau
        Matt McLarty, SD Farmers Union
        Jay Gilbertson, East Dakota Water District
        David Fischbach, Self
Opponents:    Roxanne Rice, SD Department of Transportation
        Deb Mortenson, Association of General Contractors

MOTION:     AMEND HB 1131

1131ae
     On page 1 , line 11 of the printed bill, after " of the " insert " gallons of the annual ".

     On page 3 , line 1, after " one-half of " insert " the gallons of the annual ".

     On page 3, line 20, after " be " insert " transferred to the Department of Tourism and State Development to be ".

     On page 3 , line 21, delete " The Conservation Commission shall, by rules promulgated " .

     On page 3 , delete lines 22 and 23 .

     On page 4 , line 6, delete " The " .

     On page 4 , delete lines 7 to 9 , inclusive, and insert:

"      Section 5. There is hereby continuously appropriated from monies transferred to the Department of Tourism and State Development pursuant to section 3 of this Act the sum of seventy-five thousand dollars ($75,000), or so much thereof that may be necessary, for a grant to the South Dakota Value Added Development Center.

     Section 6. There is hereby continuously appropriated from monies transferred to the Department of Tourism and State Development pursuant to section 3 of this Act the sum of seventy-five thousand dollars ($75,000), or so much thereof that may be necessary, for a grant to the Northern Crops Institute.

     Section 7. The secretary of the Department of Tourism and State Development shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.".


Moved by:    Van Etten
Second by:    Noem
Action:    Prevailed by voice vote.

 MOTION:     AMEND THE AMENDMENT

1131af
     In the previously adopted amendment (1131ae) in section 5, line 1, delete "continuously".

     In the previously adopted amendment (1131ae) in section 6, line 1, delete "continuously".

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

 MOTION:     DO PASS HB 1131 AS AMENDED

Moved by:    Van Etten
Second by:    Noem
Action:    Was not acted on.

 MOTION:     REFER TO Appropriations with a DO PASS recommendation

Moved by:    Olson (Ryan)
Second by:    Weems
Action:    Failed by voice vote.

 MOTION:     DO PASS HB 1131 AS AMENDED

Moved by:    Van Etten
Second by:    Noem
Action:    Prevailed by roll call vote.(15-0-0-0)

Voting Yes:    Bradford, Faehn, Feinstein, Juhnke, Lust, Noem, Novstrup (Al), Olson (Ryan), Peters, Thompson, Turbiville, Van Etten, Weems, Wick, Dykstra

 MOTION:     TO AMEND TITLE OF HB 1131

1131ata
     On page 1, line 2 of the printed bill, after " refunds " insert "and to make an appropriation therefor".

Moved by:    Van Etten
Second by:    Juhnke
Action:    Prevailed by voice vote.

          HB 1181: impose a sales and use tax on certain advertising services for the purpose of funding an energy assistance program for certain nursing homes, community service organizations, juvenile corrections placement agencies, and adjustment training centers.


Presented by:    Representative Mary Glenski
Opponents:    David Bordewyk, SD Newspaper Assn.
        Steve Willard, SD Broadcasters Assn.
        Dick Gregerson, SD Newspaper Ass'n

The Chair deferred HB 1181 until Thursday, February 1, 2007.

MOTION:     ADJOURN

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

Linda Daugaard

____________________________

Committee Secretary
Joel D. Dykstra, Chair

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