91
st Legislative Session _ 2016
Committee: House Taxation
Tuesday, February 16, 2016
As Amended February, 18, 2016
P - Present
E - Excused
A - Absent
Roll Call
P Bartling
P Beal
P Duvall
P Haggar (Don)
P Killer
P Kirschman
P Latterell
P May
P Novstrup (Al)
P Rasmussen
P Russell
P Wiik
P Willadsen
P Rozum, Vice-Chair
P Solum, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Tona Rozum, Vice-Chair.
MOTION: TO APPROVE THE MINUTES OF THURSDAY, FEBRUARY 11, 2016
Moved by: Willadsen
Second by: Haggar (Don)
Action: Prevailed by voice vote.
HB 1177: revise certain provisions concerning tax incentives for certain energy facilities.
Presented by: Representative Solum
Proponents: Julie Voeck, Nextera Energy, WI, self (Handouts: #1)
Hunter Roberts, Governor'S Office
Brett Koenecke, Iberdrola Renewables, LLC
MOTION: AMEND HB 1177
1177fb
On page 2, line 18 of the printed bill, overstrike "on".
On page 2, line 19, overstrike "or".
On page 2, line 19, delete "that produces power for the first time after".
On page 2, line 20, delete "June 30, 2016".
On page 3, line 5, delete "producing power for the first time after June 30, 2016".
On page 3, line 16, delete "or a solar facility producing power for the first time after June 30,".
On page 3, line 17, delete "2016,".
On page 3, line 17, remove the overstrikes from "wind".
On page 3, line 18, remove the overstrikes from the first "farm".
On page 3, line 18, delete the first "renewable facility".
On page 3, line 18, after "." insert "Any company owning or holding under lease, or otherwise,
real or personal property used, or intended for use, as a solar facility, shall pay an annual tax of
$.00090 per kilowatt hour of electricity produced by the solar facility.".
On page 3, line 20, overstrike "wind farm" and insert "renewable facility".
On page 3, after line 24, insert:
" Section 5. That § 10-35-20 be amended to read:
10-35-20. The secretary shall deposit the tax imposed by §§ 10-35-18, 10-35-19, and 10-35-19.1
into the wind energy renewable facility tax fund. There is created in the state treasury the wind
energy renewable facility tax fund.
Section 6. That § 10-35-21 be amended to read:
10-35-21. The secretary shall distribute all of the tax deposited in the
wind energy renewable
facility tax fund pursuant to § 10-35-18 and twenty percent of the tax deposited in the
wind energy
renewable facility tax fund pursuant to §§ 10-35-19 and 10-35-19.1 to the county treasurer where the
wind farm renewable facility is located. If a
wind farm renewable facility is located in more than one
county, each county shall receive the same percentage of the tax as the percentage of wind towers
or solar facilities in the
wind farm renewable facility located in the county. Upon receipt of the taxes,
the county auditor shall apportion the tax among the school districts, the county, and the organized
townships where a wind tower
or solar facility is located. The tax shall be apportioned by the county
auditor by allocating fifty percent of the tax to the school district where each wind tower
or solar
facility is located, fifteen percent to the organized township where each wind tower
or solar facility
is located, and thirty-five percent to the county. If a wind tower
or solar facility is located in a
township that is not organized, the unorganized township's share of the tax for that wind tower
or
solar facility is allocated to the county. The secretary shall distribute the money to the counties on
or before the first day of May. Any remaining revenue in the
wind energy renewable facility tax fund
shall be deposited in the state general fund.
".
Moved by: Duvall
Second by: Haggar (Don)
Action: Prevailed by voice vote.
MOTION: PLACE HB 1177 ON CONSENT CALENDAR
Moved by: Duvall
Second by: Kirschman
Action: Failed by voice vote.
MOTION: DO PASS HB 1177 AS AMENDED
Moved by: Haggar (Don)
Second by: Beal
Action: Prevailed by roll call vote. (15-0-0-0)
Voting Yes: Bartling, Beal, Duvall, Haggar (Don), Killer, Kirschman, Latterell, May, Novstrup
(Al), Rasmussen, Russell, Wiik, Willadsen, Rozum, Solum
HB 1179: revise certain provisions regarding the exemption of certain boats from the excise
tax on large boats.
Presented by: Representative Bolin
Proponents: Roger Tellinghuisen, South Dakota Association of County officials
Opponents: Jim Terwilliger, Bureau of Finance & Management
MOTION: DO PASS HB 1179
Moved by: Bartling
Second by: Latterell
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DEFER HB 1179 TO THE 41
ST LEGISLATIVE DAY
Moved by: Willadsen
Action: Died for lack of a second.
THE MOTION TO DO PASS HB 1179
Moved by: Bartling
Second by: Latterell
Action: PREVAILED BY ROLL CALL VOTE. (14-1-0-0)
Voting Yes: Bartling, Beal, Duvall, Haggar (Don), Killer, Kirschman, Latterell, May, Novstrup
(Al), Rasmussen, Russell, Wiik, Rozum, Solum
Voting No: Willadsen
HB 1204: provide a sales and use tax exemption for certain nonprofit corporations created
for the purpose of fire protection.
Presented by: Representative Anderson
Proponents: Steve Willard, South Dakota Joint Fire Council
MOTION: AMEND HB 1204
1204fa
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That chapter 10-45 be amended by adding a NEW SECTION to read:
There are hereby specifically exempted from the provisions of this chapter and from the
computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal
property, any product transferred electronically, and services to any nonprofit corporation created
for the purpose of fire protection that is controlled by any political subdivision of this state.
Section 2. That chapter 10-46 be amended by adding a NEW SECTION to read:
There are hereby specifically exempted from the provisions of this chapter and from the
computation of the amount of tax imposed by it, the purchases of tangible personal property, any
product transferred electronically, and services by any nonprofit corporation created for the purpose
of fire protection that is controlled by any political subdivision of this state."
Moved by: Kirschman
Second by: Solum
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1204 AS AMENDED
Moved by: Duvall
Second by: Bartling
Action: Prevailed by roll call vote. (15-0-0-0)
Voting Yes: Bartling, Beal, Duvall, Haggar (Don), Killer, Kirschman, Latterell, May, Novstrup
(Al), Rasmussen, Russell, Wiik, Willadsen, Rozum, Solum
MOTION: AMEND TITLE OF HB 1204
1204fta
On page 1, line 1, of the printed bill, after "sales" insert "and use".
Moved by: Solum
Second by: Wiik
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Latterell
Second by: Solum
Action: Prevailed by voice vote.
Liz Markley
____________________________
Committee Secretary
Tona Rozum, Vice-Chair
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