85th Legislative Session _ 2010

Committee: House Taxation
Tuesday, February 16, 2010

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Cutler
P    Feickert
P    Gibson
P    Greenfield
P    Hunhoff (Bernie)
P    Juhnke
P    Kirkeby
P    Kirschman
P    Lange
P    Lederman
P    Russell
E    Solum
P    Thompson
P    Noem, Vice-Chair
P    Olson (Ryan), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Ryan Olson.

MOTION:    TO APPROVE THE MINUTES OF THURSDAY, FEBRUARY 11, 2010.

Moved by:    Feickert
Second by:    Noem
Action:    Prevailed by voice vote.

        HJR 1006: Proposing a constitutional amendment to revise the legislative vote required to impose, increase, or authorize taxes.

Presented by:    Representative Kristi Noem (Handouts: #1)

Proponents:    Representative Tim Rave
        Jeremiah D. Murphy, Self
Opponents:    Yvonne Taylor, SD Municipal League
        Bob Wilcox, SD Association of County Commissioners

MOTION:    DEFER HJR 1006 TO THE 41ST LEGISLATIVE DAY

Moved by:    Gibson
Second by:    Cutler
Action:    Prevailed by roll call vote. (8-5-2-0)

Voting Yes:    Cutler, Feickert, Gibson, Hunhoff (Bernie), Kirkeby, Kirschman, Lange, Thompson

Voting No:    Greenfield, Juhnke, Lederman, Russell, Olson (Ryan)

Excused:    Solum, Noem

        HB 1084: set certain property tax levies and to provide for their application.

Presented by:    Jason Dilges, Bureau of Finance and Management

MOTION:    AMEND HB 1084

1084fa

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

    "    Section 1. The general fund levies for school districts shall be set by the Legislature during the 2010 session."


Moved by:    Noem
Second by:    Cutler
Action:    Failed by roll call vote. (7-7-1-0)

Voting Yes:    Cutler, Greenfield, Juhnke, Kirkeby, Lederman, Noem, Olson (Ryan)

Voting No:    Feickert, Gibson, Hunhoff (Bernie), Kirschman, Lange, Russell, Thompson

Excused:    Solum
MOTION:    DEFER HB 1084 TO THE 41ST LEGISLATIVE DAY

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

Voting Yes:    Cutler, Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lange, Lederman, Russell, Thompson, Noem, Olson (Ryan)

Excused:    Solum

        HB 1252: revise certain provisions related to the payment in lieu of taxes for certain housing projects exempt from property taxation.

Presented by:    Representative Peggy Gibson (Handouts: #2)
Proponents:    Barbara Cook, Huron Housing Authority

MOTION:    AMEND HB 1252

1252fa

    On page 2 of the printed bill, delete lines 8 to 10, inclusive, and insert "revenue collected for rentals of a housing project exclusive of any charge for utilities and special services such as heat, water, electricity, gas, cooking fuel, and other necessary services or facilities residential dwelling units. The term, dwelling unit rental, does not include any".


Moved by:    Greenfield
Second by:    Noem
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1252 AS AMENDED

Moved by:    Noem
Second by:    Cutler
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Cutler, Feickert, Gibson, Greenfield, Hunhoff (Bernie), Kirkeby, Kirschman, Lange, Lederman, Russell, Thompson, Noem, Olson (Ryan)

Excused:    Juhnke, Solum
MOTION:    PLACE HB 1252 ON CONSENT CALENDAR

Moved by:    Lederman
Second by:    Kirschman
Action:    Prevailed by voice vote.

        HB 1266: assess and tax certain outdoor sign structures as real property.

Presented by:    Representative Mark Kirkeby (Handouts: #3)
Proponents:    Kirk Chaffee, Self, Whitewood
        Senator Larry Rhoden
        Bob Wilcox, SD Association of County Commissioners
Opponents:    Ted Hustead, Self, Wall
        Rick Murray, Self, Pierre
        Michele Brich, SD Innkeepers Association
        Terra Fisher, Daktronics
        Shawn Lyons, SD Retailers Association
        David Owen, SD Chamber of Commerce & Industry
        Lorin Pankratz, Visitor Industry Alliance
        Julie Johnson, Absolutely Aberdeen

MOTION:    DEFER HB 1266 TO THE 41ST LEGISLATIVE DAY

Moved by:    Noem
Second by:    Greenfield
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DO PASS HB 1266

Moved by:    Lederman
Second by:    Cutler
Action:    Failed by roll call vote. (5-8-2-0)

Voting Yes:    Cutler, Feickert, Kirkeby, Lederman, Thompson

Voting No:    Greenfield, Hunhoff (Bernie), Juhnke, Kirschman, Lange, Russell, Noem, Olson (Ryan)

Excused:    Gibson, Solum

THE MOTION TO DEFER HB 1266 TO THE 41ST LEGISLATIVE DAY
Moved by:    Noem
Second by:    Greenfield
Action:    PREVAILED BY ROLL CALL VOTE. (9-4-2-0)

Voting Yes:    Feickert, Greenfield, Hunhoff (Bernie), Juhnke, Kirschman, Lange, Russell, Noem, Olson (Ryan)

Voting No:    Cutler, Kirkeby, Lederman, Thompson

Excused:    Gibson, Solum

        HB 1041: repeal the discount on the sales of cigarette tax stamps to distributors.

        *Prior Testimony heard on February 9, 2010 and February 11, 2010.

Opponents:    Garry Moore, Self, Yankton
        Jeremiah M Murphy, McLane Company
        
Rebuttal:    Michael Kenyon, Department of Revenue and Regulation

MOTION:    AMEND HB 1041

1041ff

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

    "    Section 1. The requirement for affixing stamps to packages containing cigarettes is hereby repealed. Each distributor and wholesaler delivering cigarettes in the state of South Dakota shall pay the tax imposed by this chapter. The Department of Revenue and Regulation shall promulgate rules pursuant to chapter 1-26 to collect the cigarette tax and to administer and enforce the provisions regarding the sale and distribution of cigarettes."


Moved by:    Greenfield
Second by:    Hunhoff (Bernie)
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND HB 1041

1041fb
    On page 1, line 8, of the printed bill, delete "a discount of two percent of" and insert "a discount of two one percent of".


Moved by:    Cutler
Second by:    Juhnke
Action:    Failed by voice vote.

THE MOTION TO AMEND HB 1041

1041ff

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

    "    Section 1. The requirement for affixing stamps to packages containing cigarettes is hereby repealed. Each distributor and wholesaler delivering cigarettes in the state of South Dakota shall pay the tax imposed by this chapter. The Department of Revenue and Regulation shall promulgate rules pursuant to chapter 1-26 to collect the cigarette tax and to administer and enforce the provisions regarding the sale and distribution of cigarettes."


Moved by:    Greenfield
Second by:    Hunhoff (Bernie)
Action:    PREVAILED BY VOICE VOTE.

MOTION:    DO PASS HB 1041 AS AMENDED

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

Voting Yes:    Cutler, Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lange, Lederman, Russell, Thompson, Noem, Olson (Ryan)

Excused:    Solum

MOTION:    AMEND TITLE OF HB 1041

1041ftb

    On page 1, line 1, of the printed bill, delete everything after "to" and insert "revise certain

provisions concerning the application and administration of the cigarette tax and to repeal certain requirements concerning cigarette stamps.".


    On page 1, delete line 2.


Moved by:    Greenfield
Second by:    Juhnke
Action:    Prevailed by voice vote.

        HB 1255: lower the state sales and use tax on certain food items and to increase the rate of taxation for the sales and use tax on certain goods and services.

Presented by:    Representative Marc Feinstein (Handouts: #4)
        Senator Pam Merchant

        THE CHAIR DEFERRED HB 1255 UNTIL THURSDAY, FEBRUARY 18, 2010.

MOTION:    ADJOURN

Moved by:    Juhnke
Second by:    Gibson
Action:    Prevailed by voice vote.

Linda Daugaard

____________________________

Committee Secretary
Ryan P. Olson, Chair

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