72nd Legislative Session -- 1997

Committee: House Taxation

Thursday, February 13, 1997

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Apa
P      Belatti
P      Brown (Richard)
P      Diedrich
P      Koskan
P      Napoli
P      Peterson (Bill)
P      Barker
P      Kazmerzak
P      Moore
P      Waltman
P      Wick, Vice-Chair
P      Cutler, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Cutler.


MOTION:      TO APPROVE THE MINUTES OF FEBRUARY 11, 1997 PM.

Moved by:      Representative Koskan
Second by:      Representative Moore
Action:      Prevailed by voice vote.

          HB 1212:   to exempt transportation services, veterinarian services, animal speciality services, and gross receipts from certain auctions from sales and use tax.

Proponents:      None.
Opponents:      Gary Viken, Secretary, Dept. of Revenue, Pierre
Presented by:      Representative Doug Kazmerzak, Erwin, prime sponsor

MOTION:      DEFER HB 1212 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Brown (Richard)


Second by:      Representative Koskan
Action:      Prevailed by roll call vote.   (9-4-0-0)

Voting yes:      Apa, Belatti, Brown (Richard), Diedrich, Koskan, Napoli, Peterson (Bill), Wick, Cutler

Voting no:      Barker, Kazmerzak, Moore, Waltman

          HB 1217:   to increase the tax on cigarettes and other tobacco products.

Proponents:      None.
Opponents:      Ron Olinger, lobbyist, SD Retailers Association, Pierre (Document 1)
Presented by:      Representative Dick Brown, prime sponsor, Sioux Falls

MOTION:      DEFER HB 1217 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Belatti
Second by:      Representative Moore
Action:      Prevailed by roll call vote.   (12-1-0-0)

Voting yes:      Apa, Belatti, Diedrich, Koskan, Napoli, Peterson (Bill), Barker, Kazmerzak, Moore, Waltman, Wick, Cutler

Voting no:      Brown (Richard)

          HB 1224:   to revise the tax refund provisions for agricultural facilities.

Proponents:      Representative Mike Jaspers, Pierpont, sponsor
        Senator Bob Drake, Bowdle, sponsor
        Herb Heesch, Tri-State Corn Processing, Rosholt (Documents 2 and 3)
        Kermit Keifer, corn farmer and president of Tri-State Corn Processing, Rosholt
        Brenda Forman, lobbyist, SD Wheat Incorporated, Pierre
        Darlene Huettl, SD Stockgrowers, Rapid City        
Opponents:      None.
Presented by:      Representative Larry Diedrich, prime sponsor, Elkton
Comments by:      Scott Peterson, Dept. of Revenue, Pierre (for clarification)

MOTION:      AMEND HB 1224

q-1224
     On page 2 , line 17 of the printed bill , overstrike " July " and insert " April " .

     On page 3 , line 11 , delete " June 30 " and insert " March 31 " .

     On page 4 , after line 1 , insert:

"      Section 8. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval. "


Moved by:      Representative Diedrich
Second by:      Representative Belatti
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1224 AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Koskan
Action:      Prevailed by roll call vote.   (10-2-1-0)

Voting yes:      Apa, Belatti, Brown (Richard), Diedrich, Koskan, Peterson (Bill), Kazmerzak, Waltman, Wick, Cutler

Voting no:      Napoli, Moore

Excused:      Barker

MOTION:      TO AMEND TITLE OF HB 1224

q-1224T
     On page 1 , line 1 , after " facilities " insert " and to declare an emergency " .


Moved by:      Representative Wick
Second by:      Representative Koskan
Action:      Prevailed by voice vote.

          HB 1244:   to create a severance tax on timber and exempt the transportation of timber from sales and use tax.

Proponents:      Senator Drue Vitter, Hill City, sponsor, representing Continental Lumber Co. Inc., Hill City
Opponents:    Jim Hood, lobbyist, Pope and Talbot, Spearfish
        Ray Trankle, Industry and Commerce Association of SD;
        Jim Keyes, Associated General Contractors, Pierre
Presented by:      Representative Gordon Pederson, Wall, prime sponsor

MOTION:      AMEND HB 1244


f-1244a
     On page 1 , line 14 of the printed bill , after " harvesting " insert " for commercial purposes " .

     On page 2 , line 6 , after " for " insert " commercial " .

     On page 2 , line 9 , after " other " insert " commercial " .

     On page 2 , line 17 , after " tax " insert " , credits, " .

     On page 2 , line 18 , after " severing " insert " or processing " .

     On page 2 , line 20 , after " severing " insert " or processing " .

     On page 2 , line 21 , delete " and that " .

     On page 2 , delete delete line 22 .

     On page 2 , line 23 , delete " secretary " .

     On page 3 , line 1 , after " severing " insert " or processing " .

     On page 3 , line 5 , after " . " insert " The provisions of this Act do not apply to any person who severs or purchases timber for the purpose of firewood. " .

     On page 3 , line 7 , after " severed " insert " or processed " .

     On page 3 , line 11 , delete everything after " . " and insert " If a tax was imposed on the timber at the time it was severed, the primary processor may claim a credit against the tax levied by section 5 of this Act and apply to the tax liability on the timber to be processed. " .

     On page 3 , delete lines 12 to 15 , inclusive .


     On page 3 , line 16 , after " severing " insert " or processing " .

     On page 3 , line 20 , delete " owning or " .

     On page 3 , line 20 , after " severing " insert " or processing " .

     On page 3 , line 22 , after " severing " insert " or processing " .

     On page 4 , line 2 , delete " twenty-five " and insert " thirty " .

     On page 4 , line 5 , delete " and the cash " .

     On page 4 , line 6 , delete " value thereof, " .

     On page 4 , line 9 , delete " ten " and insert " thirty " .

     On page 4 , delete lines 14 to 24 , inclusive .

     On page 5 , delete lines 1 to 24 , inclusive .

     On page 6 , delete lines 1 to 24 , inclusive .

     On page 7 , delete lines 1 to 4 , inclusive .


Moved by:      Representative Brown (Richard)
Second by:      Representative Waltman
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1244 AS AMENDED

Moved by:      Representative Napoli
Second by:      Representative Apa
Action:      Was not acted on.



MOTION:      SUBSTITUTE MOTION TO DEFER HB 1244 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Waltman
Second by:      Representative Brown (Richard)
Action:      Prevailed by roll call vote.   (10-3-0-0)

Voting yes:      Belatti, Brown (Richard), Diedrich, Koskan, Peterson (Bill), Barker, Moore, Waltman, Wick, Cutler

Voting no:      Apa, Napoli, Kazmerzak

          HB 1231:   to revise the property tax levies for general funds of a school district.

Proponents:      Jim Schade, Director of Property and Special Taxes Division, Dept. of Revenue
Opponents:      None.
Presented by:      Representative Larry Gabriel, Cottonwood, prime sponsor

MOTION:      DO PASS HB 1231

Moved by:      Representative Koskan
Second by:      Representative Peterson (Bill)
Action:      Prevailed by roll call vote.   (13-0-0-0)

Voting yes:      Apa, Belatti, Brown (Richard), Diedrich, Koskan, Napoli, Peterson (Bill), Barker, Kazmerzak, Moore, Waltman, Wick, Cutler

MOTION:      ADJOURN

Moved by:      Representative Diedrich
Second by:      Representative Brown (Richard)
Action:      Prevailed by voice vote.

Chairman Cutler stated HB 1279 would be heard on Tuesday, February 18, 1997.


Jenelle Busse

_________________________________

Committee Secretary
Steve Cutler, Chair


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