89th Legislative Session _ 2014

Committee: Senate Taxation
Wednesday, February 12, 2014

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Ewing
P    Jones (Chuck)
P    Kirkeby
P    Omdahl
P    Welke
P    Monroe, Vice-Chair
P    Otten (Ernie), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Ernie Otten, Chair.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 10, 2014

Moved by:    Ewing
Second by:    Welke
Action:    Prevailed by voice vote.

    SB 160: exempt the production of certain plants and sod from sales and use taxes.

Presented by:    Senator Tim Begalka
Opponents:    David Wiest, Department of Revenue (Handout: 1)

MOTION:    AMEND SB 160

160fa

    On page 1, line 12, of the printed bill, after ";" insert "and".

    On page 1, line 13, delete "; and" and insert ".".

    On page 1, delete line 14.

    On page 2, line 16, after ";" insert "and".
    On page 2, line 17, delete "; and" and insert ".".

    On page 2, delete line 18.


Moved by:    Kirkeby
Second by:    Monroe
Action:    Failed by voice vote.

MOTION:    DO PASS SB 160

Moved by:    Kirkeby
Second by:    Ewing
Action:    Failed by roll call vote. (3-3-1-0)

Voting Yes:    Ewing, Kirkeby, Monroe

Voting No:    Omdahl, Welke, Otten (Ernie)

Excused:    Jones (Chuck)

MOTION:    DEFER SB 160 TO THE 41ST LEGISLATIVE DAY

Moved by:    Omdahl
Second by:    Welke
Action:    Failed by roll call vote. (3-3-1-0)

Voting Yes:    Omdahl, Welke, Otten (Ernie)

Voting No:    Ewing, Kirkeby, Monroe

Excused:    Jones (Chuck)

    SB 162: repeal certain mineral severance taxes imposed on precious metals and to repeal certain temporary and expired mineral severance taxes.

Presented by:    Senator Bob Ewing
Proponents:    Larry Mann, Wharf Resources (Handout: 2)
Opponents:    Jim Terwilliger, Bureau of Finance and Management (Handout: 1)

MOTION:    AMEND SB 162

162fb

    On page 1 of the printed bill, delete lines 4 to 15, inclusive, and insert:

"    Section 1. That § 10-39-68 be amended to read as follows:


    10-39-68. In addition to the tax imposed in § 10-39-43, there is hereby imposed an additional tax on each ounce of precious metals severed as follows:
            (1)    Four dollars of one dollar per ounce of gold severed during a quarter if the average price of the precious metal is eight hundred dollars per ounce or greater;
            (2)    Three dollars per ounce of gold severed during a quarter if the average price of the precious metal is seven hundred dollars per ounce or greater;
            (3)    Two dollars per ounce of gold severed during a quarter if the average price of the precious metal is six hundred dollars per ounce or greater; and
            (4)    One dollar per ounce of gold severed during a quarter if the average price of the precious metal is five hundred dollars per ounce or greater.

    The average price of gold shall be computed by summing the daily London Final price of the precious metal for each business day of the quarter and dividing by the number of business days in the quarter.

    Section 2. That § 10-39-45.1 be amended to read as follows:

    10-39-45.1. In addition to any other tax imposed in chapter 10-39, there is imposed a tax of ten eight percent of the net profits from the sale of precious metals severed in this state. ".


    On page 2, delete lines 1 and 2.


Moved by:    Monroe
Second by:    Ewing
Action:    Prevailed by voice vote.

MOTION:    AMEND THE PREVIOUSLY ADOPTED AMENDMENT

162fc

    On the previously adopted amendment (162fb), delete "one dollar" and insert "two dollars".


Moved by:    Kirkeby
Second by:    Ewing
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 162 AS AMENDED

Moved by:    Ewing
Second by:    Omdahl
Action:    Prevailed by roll call vote. (4-3-0-0)

Voting Yes:    Ewing, Kirkeby, Omdahl, Monroe

Voting No:    Jones (Chuck), Welke, Otten (Ernie)
    HB 1069: revise the maximum redemption fee for property tax deeds.

Presented by:    Representative Julie Bartling
Proponents:    Roger Tellinghuisen, SD Association of County Officials

MOTION:    DO PASS HB 1069

Moved by:    Ewing
Second by:    Jones (Chuck)
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Ewing, Jones (Chuck), Kirkeby, Omdahl, Welke, Monroe, Otten (Ernie)

    SB 160: exempt the production of certain plants and sod from sales and use taxes.

MOTION:    RECONSIDER SB 160

Moved by:    Welke
Second by:    Omdahl
Action:    Prevailed by voice vote.

THE MOTION TO DEFER SB 160 TO THE 41ST LEGISLATIVE DAY

Moved by:    Welke
Second by:    Omdahl
Action:    PREVAILED BY ROLL CALL VOTE. (4-3-0-0)

Voting Yes:    Jones (Chuck), Omdahl, Welke, Otten (Ernie)

Voting No:    Ewing, Kirkeby, Monroe

MOTION:    ADJOURN

Moved by:    Welke
Second by:    Jones (Chuck)
Action:    Prevailed by voice vote.

Charlotte Conway

____________________________

Committee Secretary
Ernie Otten, Chair

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