P - Present
E - Excused
A - Absent
Roll Call
P Anderson
P Dennert
E Diedrich
P Goodwin
P Gosch
P Hansen
P Haugaard
P Jensen (Kevin)
P McCleerey
E Peterson (Kent)
P Smith (Jamie)
P Beal, Vice-Chair
P Qualm, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Qualm.
MOTION: TO APPROVE THE MINUTES OF FEBRUARY 20, 2019- AM MEETING
Moved by: Haugaard
Second by: Goodwin
Action: Prevailed by voice vote.
HB 1236: revise certain provisions regarding health insurance coverage.
Presented by: Representative Ryan Cwach
Proponents: Senator Brock Greenfield
Lorri Unumb, self, South Carolina
Tracy Stephens, self, Pierre
Dean Krogman, State Medical Association of South Dakota
MOTION: DEFER HB 1236 TO THE 41ST LEGISLATIVE DAY
Moved by: Hansen
Second by: Gosch
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DO PASS HB 1236
Moved by: McCleerey
Second by: Smith (Jamie)
Action: Failed by roll call vote. (4-7-2-0)
Voting Yes: Dennert, Jensen (Kevin), McCleerey, Smith (Jamie)
Voting No: Anderson, Goodwin, Gosch, Hansen, Haugaard, Beal, Qualm
Excused: Diedrich, Peterson (Kent)
MOTION: DEFER HB 1236 TO THE 41ST LEGISLATIVE DAY
Moved by: Hansen
Second by: Gosch
Action: Prevailed by roll call vote. (7-4-2-0)
Voting Yes: Anderson, Goodwin, Gosch, Hansen, Haugaard, Beal, Qualm
Voting No: Dennert, Jensen (Kevin), McCleerey, Smith (Jamie)
" Section 1. That chapter 42-7 be amended by adding a NEW SECTION to read:
Section 2. That § 42-7-89 be amended to read:
42-7-89. The payments required in section 1 of this Act, §§ 42-7-63, 42-7-79, 42-7-85, 42-7-88,
and 42-7-102 to be made by the licensee to the state treasurer are in lieu of all other or further excise
or occupational taxes to the state or any county, municipality, or other political subdivision. "
" Section 1. That the code be amended by adding a NEW SECTION to read:
MOTION: DO PASS HB 1135
Moved by: Gosch
Second by: Dennert
Action: Failed by roll call vote. (5-6-2-0)
Voting Yes: Dennert, Goodwin, Gosch, Haugaard, Beal
Voting No: Anderson, Hansen, Jensen (Kevin), McCleerey, Smith (Jamie), Qualm
Excused: Diedrich, Peterson (Kent)
MOTION: WITHOUT RECOMMENDATION HB 1135
Moved by: Dennert
Second by: Gosch
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DEFER HB 1135 TO THE 41ST LEGISLATIVE DAY
Moved by: Dennert
Second by: Gosch
Action: Failed by roll call vote. (6-5-2-0)
Voting Yes: Dennert, Goodwin, Gosch, Haugaard, Jensen (Kevin), Beal
Voting No: Anderson, Hansen, McCleerey, Smith (Jamie), Qualm
Excused: Diedrich, Peterson (Kent)
THE CHAIR DEFERRED HB 1135 UNTIL FEBRUARY 22, 2019
HB 1136: repeal provisions regarding legislative districts.
MOTION: TO TABLE HB 1136
Moved by: Haugaard
Second by: Beal
Action: Prevailed by roll call vote. (7-4-2-0)
Voting Yes: Anderson, Hansen, Haugaard, McCleerey, Smith (Jamie), Beal, Qualm
Voting No: Dennert, Goodwin, Gosch, Jensen (Kevin)
Excused: Diedrich, Peterson (Kent)
HB 1265: revise provisions regarding certain tax rates.
Presented by: Representative Chris Karr
Opponents: Curtis A Everson, South Dakota Bankers Association
MOTION: DEFER HB 1265 TO THE 41ST LEGISLATIVE DAY
Moved by: Goodwin
Second by: Anderson
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DO PASS HB 1265
Moved by: Haugaard
Second by: Gosch
Action: Failed by roll call vote. (2-9-2-0)
Voting Yes: Gosch, Haugaard
Voting No: Anderson, Dennert, Goodwin, Hansen, Jensen (Kevin), McCleerey, Smith (Jamie),
Beal, Qualm
Excused: Diedrich, Peterson (Kent)
MOTION: DEFER HB 1265 TO THE 41ST LEGISLATIVE DAY
Moved by: Goodwin
Second by: Anderson
Action: Prevailed by roll call vote. (9-2-2-0)
Voting Yes: Anderson, Dennert, Goodwin, Hansen, Jensen (Kevin), McCleerey, Smith (Jamie),
Beal, Qualm
Voting No: Gosch, Haugaard
Excused: Diedrich, Peterson (Kent)
MOTION: RECONSIDER HB 1265
Moved by: Gosch
Second by: Haugaard
Action: Prevailed by roll call vote. (11-0-2-0)
Voting Yes: Anderson, Dennert, Goodwin, Gosch, Hansen, Haugaard, Jensen (Kevin), McCleerey,
Smith (Jamie), Beal, Qualm
" Section 1. That the code be amended by adding a NEW SECTION to read:
Section 2. That § 10-45-2 be amended to read:
10-45-2. There is hereby imposed a tax upon the privilege of engaging in business as a retailer,
a tax of four and one-half percent upon the gross receipts of all sales of tangible personal property
consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at
retail in the State of South Dakota this state to consumers or users. The rate of tax under this section
is the same as provided under section 1 of this Act.
Section 3. That § 10-45-5 be amended to read:
10-45-5. There is imposed a tax at the rate of four and one-half percent upon the gross receipts
of any person from engaging or continuing in any of the following businesses or services in this state:
abstracters; accountants; ancillary services; architects; barbers; beauty shops; bill collection services;
blacksmith shops; car washing; dry cleaning; dyeing; exterminators; garage and service stations;
garment alteration; cleaning and pressing; janitorial services and supplies; specialty cleaners;
laundry; linen and towel supply; membership or entrance fees for the use of a facility or for the right
to purchase tangible personal property, any product transferred electronically, or services;
photography; photo developing and enlarging; tire recapping; welding and all repair services, except
repair services for farm machinery, attachment units, and irrigation equipment used exclusively for
agricultural purposes; cable television; and rentals of tangible personal property except leases of
tangible personal property between one telephone company and another telephone company, motor
vehicles as defined pursuant to § 32-5-1 leased under a single contract for more than twenty-eight
days and mobile homes. However, the specific Specific enumeration of businesses and professions
made in any business or profession under this section does not, in any way, limit the scope and effect
of the provisions of § 10-45-4. The rate of tax under this section is the same as provided under
section 1 of this Act.
Section 4. That § 10-45-5.3 be amended to read:
10-45-5.3. There is imposed, at the rate of four and one-half percent, an excise tax on the gross
receipts of any person engaging in oil and gas field services (group no. 138) as enumerated in the
Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the
Office of Management and Budget, Office of the President. The rate of tax under this section is the
same as provided under section 1 of this Act.
Section 5. That § 10-45-6 be amended to read:
10-45-6. There is hereby imposed a tax of four and one-half percent upon the gross receipts from
sales, furnishing, or service of gas, electricity, and water, including the gross receipts from such sales
by any municipal corporation furnishing gas, and electricity, to the public in its proprietary capacity,
except as otherwise provided in this chapter, when sold at retail in the State of South Dakota this
state to consumers or users. The rate of tax under this section is the same as provided under section
1 of this Act.
Section 6. That § 10-45-6.1 be amended to read:
10-45-6.1. Except as provided in § 10-45-6.2, there is hereby imposed a tax of four and one-half
percent upon the gross receipts from providing any intrastate, interstate, or international
telecommunications service that originates or terminates in this state and that is billed or charged to
a service address in this state, or that both originates and terminates in this state. However, the The
tax imposed by this section does not apply to:
Section 7. That § 10-45-6.2 be amended to read:
10-45-6.2. There is hereby imposed a tax of four and one-half percent upon the gross receipts of
mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that
originate and terminate in the same state and are billed to a customer with a place of primary use in
this state or are deemed to have originated or been received in this state and to be billed or charged
to a service address in this state if the customer's place of primary use is located in this state
regardless of where the service actually originates or terminates. Notwithstanding any other provision
of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile
telecommunication services shall be administered in accordance with 4 U.S.C. §§ 116-126 as in
effect on July 28, 2000. The rate of tax under this section is the same as provided under section 1 of
this Act.
Section 8. That § 10-45-8 be amended to read:
10-45-8. There is imposed a tax of four and one-half percent upon the gross receipts from all
sales of tickets or admissions to places of amusement and athletic contests or events, except as
otherwise provided in this chapter. The rate of tax under this section is the same as provided under
section 1 of this Act.
Section 9. That § 10-45-71 be amended to read:
10-45-71. There is imposed a tax of four and one-half percent on upon the gross receipts from
the transportation of passengers. The tax imposed by this section shall apply to any transportation
of passengers if the passenger boards and exits the mode of transportation within this state. The rate
of tax under this section is the same as provided under section 1 of this Act.
Section 10. That § 10-46-2.1 be amended to read:
10-46-2.1. For the privilege of using services in South Dakota this state, except those types of
any services exempted by § 10-46-17.3, there is imposed on the person using the service an excise
tax equal to four and one-half percent of on the value of the services at the time they are rendered.
However, this The tax under this section may not be imposed on any service rendered by a related
corporation as defined in subdivision 10-43-1(11) for use by a financial institution as defined in
subdivision 10-43-1(4) or on any service rendered by a financial institution as defined in subdivision
10-43-1(4) for use by a related corporation as defined in subdivision 10-43-1(11). For the purposes
of this section, the term related corporation includes a corporation which together with the financial
institution is part of a controlled group of corporations as defined in 26 U.S.C. § 1563 as in effect
on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C.
§ 563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. For the purpose
of this chapter, services rendered by an employee for the use of his employer are not taxable. The rate
of tax under this section is the same as provided under section 1 of this Act.
Section 11. That § 10-46-2.2 be amended to read:
10-46-2.2. An excise tax is imposed upon the privilege of the use of rented tangible personal
property and any product transferred electronically in this state at the rate of four and one-half
percent of. The rate of tax under this section is the same as provided under section 1 of this Act as
applied to the rental payments upon the property.
Section 12. That § 10-46-58 be amended to read:
10-46-58. There is imposed a tax of four and one-half percent on the privilege of the use of any
transportation of passengers. The tax imposed by this section shall apply to any transportation of
passengers if the passenger boards and exits the mode of transportation within this state. The rate of
tax under this section is the same as provided under section 1 of this Act.
Section 13. That § 10-46-69 be amended to read:
10-46-69. There is hereby imposed a tax of four and one-half percent upon the privilege of the
use of mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002,
that originate and terminate in the same state and are billed to a customer with a place of primary use
in this state. Notwithstanding any other provision of this chapter and for purposes of the tax imposed
by this section, the tax imposed upon mobile telecommunication services shall be administered in
accordance with 4 U.S.C. §§ 116-126 as in effect on July 28, 2000. The rate of tax under this section
is the same as provided under section 1 of this Act.
Section 14. That § 10-46-69.1 be amended to read:
10-46-69.1. Except as provided in § 10-46-69, there is hereby imposed a tax of four and one-half
percent upon the privilege of the use of any intrastate, interstate, or international telecommunications
service that originates or terminates in this state and that is billed or charged to a service address in
this state, or that both originates and terminates in this state. However, the tax imposed by this
section does not apply to:
Section 15. That § 10-46-69.2 be amended to read:
10-46-69.2. There is hereby imposed a tax of four and one-half percent upon the privilege of the
use of any ancillary services. The rate of tax under this section is the same as provided under section
1 of this Act.
Section 16. That § 10-46E-1 be amended to read:
10-46E-1. There is hereby imposed an excise tax of four and one-half percent on the gross
receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment
used exclusively for agricultural purposes. However, if If any trade-in or exchange of used farm
machinery, attachment units, and irrigation equipment is involved in the transaction, the excise tax
is only due and may only be collected on the cash difference. The rate of tax under this section is the
same as provided under section 1 of this Act.
Section 17. That § 10-58-1 be amended to read:
10-58-1. There is imposed upon owners and operators a special amusement excise tax of four and
one-half percent of on the gross receipts from the operation of any mechanical or electronic
amusement device. The rate of tax under this section is the same as provided under section 1 of this
Act.
Section 18. That § 10-64-9 be repealed.
10-64-9. If the state is able to enforce the obligation to collect and remit sales tax on remote
sellers who deliver tangible personal property, products transferred electronically, or services directly
to the citizens of South Dakota, the additional net revenue from such obligation shall be used to
reduce the rate of certain taxes. The rate of tax imposed by §§ 10-45-2, 10-45-5, 10-45-5.3, 10-45-6,
10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46-69, 10-46-69.1, 10-46-69.2, 10-46E-1, and 10-58-1 shall be reduced by one-tenth percent on July first following the
calendar year for which each additional twenty million dollar increment of net revenue is collected
and remitted by such remote sellers. However, the rate of tax imposed by §§ 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46-69,
10-46-69.1, 10-46-69.2, 10-46E-1, and 10-58-1 may not be reduced below four percent pursuant to
the provisions of this section. "
Pam Kean