72nd Legislative Session -- 1997
Committee: Senate State Affairs
Monday, March 3, 1997
P - Present
E - Excused
A - Absent
Roll Call
P
Dunn (Jim)
P
Everist
P
Munson (David)
P
Dunn (Rebecca)
P
Hunhoff
P
Lawler
P
Whiting
P
Rounds, Vice-Chair
P
Halverson, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator Halverson, Chair.
MOTION:
TO APPROVE THE MINUTES OF FEBRUARY 28, 1997.
Moved by:
Senator Dunn (Jim)
Second by:
Senator Dunn (Rebecca)
Action:
Prevailed by voice vote.
HB 1242:
to allow reciprocal interstate shipments of wine.
Opponents:
Bill Dougherty, SoDak Liquor Distributing, Sioux Falls
Jeremiah Murphy, Officer & Director, SoDak Liquor Distributing
Presented by:
Representative Hagg, with rebuttal after other testimony
Comments by:
Jim Fry, Department of Revenue, clarify constitutional provisions
MOTION:
AMEND HB 1242
o-1242a
On page
1
,
line
6 of the House engrossed bill
,
after "
sent
"
insert "
and if the fee provided by
section 6 of this Act is paid
"
.
Moved by:
Senator Whiting
Second by:
Senator Lawler
Action:
Prevailed by voice vote.
MOTION:
AMEND HB 1242
o-1242m
On page
1
,
line
3 of the House engrossed bill
,
after "
receive
"
, from the brand owner of the wine
or the owner's authorized agent,.
On page
2
,
line
10
,
delete everything after "
shipments.
"
and insert "
No person outside the state
may advertise interstate shipments of wine into this state to any person not entitled to receive
shipments of wine interstate unless the advertisement is included as a part of a publication which
includes varied items of news, information and entertainment.
"
Moved by:
Senator Rounds
Second by:
Senator Lawler
Action:
Prevailed by voice vote.
MOTION:
AMEND HB 1242
o-1242b
On page
2
,
line
12 of the House engrossed bill
,
after "
Revenue.
"
insert "
This fee does not apply
to the first case of wine brought or shipped into the state.
"
.
Moved by:
Senator Dunn (Rebecca)
Second by:
Senator Hunhoff
Action:
Prevailed by voice vote.
MOTION:
DEFER HB 1242 UNTIL THE 41ST LEGISLATIVE DAY
Moved by:
Senator Lawler
Second by:
Senator Halverson
Action:
Prevailed by roll call vote.
(6-3-0-0)
Voting yes:
Dunn (Jim), Everist, Munson (David), Hunhoff, Lawler, Rounds
Voting no:
Dunn (Rebecca), Whiting, Halverson
HB 1218:
to revise certain provisions concerning the detention of children in need
of supervision and delinquent children.
Proponents:
Judge Max A. Gors, 6th Circuit
Presented by:
Representative Jaspers
MOTION:
AMEND HB 1218
o-1218
On page
2 of the House Judiciary committee engrossed bill
,
between lines
12
and
13
,
insert:
"
An apparent, alleged, or adjudicated child in need of supervision or an apparent, alleged, or
adjudicated delinquent child may be held in an adult lockup or jail for up to six hours for purposes
of identification, processing, interrogation, transfer to juvenile facility, or release to parents if the
child is physically separated from adult prisoners.
"
Moved by:
Senator Whiting
Second by:
Senator Everist
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1218 AS AMENDED
Moved by:
Senator Rounds
Second by:
Senator Everist
Action:
Prevailed by roll call vote.
(8-0-1-0)
Voting yes:
Everist, Munson (David), Dunn (Rebecca), Hunhoff, Lawler, Whiting, Rounds,
Halverson
Excused:
Dunn (Jim)
HB 1057:
to allow certain party hunting practices in the hunting of big game.
Proponents:
Paul Knecht, Pierre Chamber of Commerce
Kathy Zander, Executive Director SD Great Lake Assn Inc.
Opponents:
Roger Pries, SD Wildlife Federation
MOTION:
DO PASS HB 1057 AS AMENDED
Moved by:
Senator Rounds
Second by:
Senator Whiting
Action:
Prevailed by roll call vote.
(5-4-0-0)
Voting yes:
Dunn (Jim), Everist, Whiting, Rounds, Halverson
Voting no:
Munson (David), Dunn (Rebecca), Hunhoff, Lawler
HB 1191:
to repeal the entrepreneurial loan program.
Presented by:
Senator Everist made brief remarks
MOTION:
DEFER HB 1191 UNTIL THE 41ST LEGISLATIVE DAY
Moved by:
Senator Everist
Second by:
Senator Rounds
Action:
Prevailed by roll call vote.
(6-3-0-0)
Voting yes:
Dunn (Jim), Everist, Munson (David), Whiting, Rounds, Halverson
Voting no:
Dunn (Rebecca), Hunhoff, Lawler
HB 1243:
to establish a telecommunications gross receipts tax, provide certain
credits, revise certain tax rates on gross receipts, and revise certain exemptions to
taxes levied on property.
Opponents:
John McNamara, Assistant Tax Director, AT&T with Hand-out
Dave Gerdes, Midco Communication, Sioux Falls, with Hand-out
Fred Thurman, Firstell, Sioux Falls
Warren May, McLeod USA Telemanagement, Inc., Cedar Rapids, IA, Hand-out
Bob Frieberg, SD Municipal Electric Assn
Tom Adam, MCI Telecommunications
Comments by:
Mac McCracken, US West Communications with clarifications regarding other
testimony
MOTION:
AMEND HB 1243
f-1243j
On page
3
,
line
5 of the House engrossed bill
,
delete "
property of a
"
.
On page
3
,
line
6
,
before "
telephone
"
insert "
any
"
.
On page
3
,
delete line
7
,
and insert "
is taxed pursuant to this Act and chapter 10-33.
"
.
On page
8
,
line
11
,
after "
corporations,
"
insert "
municipal corporations,
"
.
On page
9
,
delete lines
18
to
22
, inclusive
.
On page
11
,
after line
7
,
insert:
"
Section 34. After the tax imposed by
§
10-33-16 is levied in 1997 for taxes payable in 1998, no
additional taxes shall be levied pursuant to
§
10-33-16.
Section 35. That
§
10-33-3
be repealed.
10-33-3.
Each company as herein defined, shall keep on file with the county auditor of each
county through or into which its line or lines run, a map or blueprints showing correctly the location
of its line or lines in such county and in each government subdivision thereof.
Section 36. That
§
10-33-4
be repealed.
10-33-4.
It shall be the duty of the president, secretary, general manager, or superintendent of
every telephone company doing business in this state, to furnish to the Department of Revenue on
or before April fifteenth, each year, a report under oath, on the forms furnished and according to the
instructions issued by the Department of Revenue, with reference to the property owned, leased, or
controlled on December thirty-first of the preceding calendar year.
Section 37. That
§
10-33-5
be repealed.
10-33-5.
With reference to property without the limits of municipalities, exclusive of all
exchanges or central office equipment, the statement required by
§
10-33-4 shall show the following
items:
(1)
The counties of this state in which the company making the report owns or operates any
line or lines, arranged in alphabetical order;
(2)
The number of miles of pole lines, whether rural or toll or both and with a detailed
description of the construction of such lines, and the cost of construction, together with
the present or depreciated value of such line or lines in each county.
Section 38. That
§
10-33-6
be repealed.
10-33-6.
The report required by
§
10-33-4 shall give the following items of information
concerning any and all exchanges owned or operated by the reporting company:
(1)
The location of all exchanges in each county, with the names of the municipalities in each
county and the counties arranged in alphabetical order;
(2)
A description in detail of the construction and equipment of each exchange, with the cost
of construction and equipment, and the present or depreciated value;
(3)
A description of each tract or parcel of real estate and any and all buildings thereon,
owned and used exclusively for telephone purposes, with the present cash value of each
tract and improvements thereon;
(4)
The present cash value of any and all franchises or permits under which the reporting
company does business in any municipality;
(5)
All other property used exclusively in the operation and maintenance of the telephone
business of the reporting company.
Section 39. That
§
10-33-7
be repealed.
10-33-7.
The report required by
§
10-33-4 shall show the following details concerning the
financial organization and operation of the company:
(1)
The amount of capital stock authorized and the amount issued as preferred stock or as
common stock, with the present actual cash value of the same;
(2)
All assets and liabilities;
(3)
All receipts and disbursements.
Section 40. That
§
10-33-8
be repealed.
10-33-8.
The statement required by
§
10-33-4 shall include such other facts and information as
the Department of Revenue may require.
Section 41. That
§
10-33-9
be repealed.
10-33-9.
In case any telephone company fails to make the report required by
§
10-33-4, on or
before April fifteenth of each year, the Department of Revenue in its discretion may add twenty-five
percent to the assessable value of the property of such company.
Section 42. That
§
10-33-10
be repealed.
10-33-10.
All property, real and personal, which is actually and necessarily used in the operation
and maintenance of telephone lines in this state, and which belongs to any telephone company in this
state which is not subject to the provisions of
§
§
10-33-21 and 10-33-22 shall be assessed for the
purpose of taxation by the Department of Revenue, and not otherwise.
Section 43. That
§
10-33-11
be repealed.
10-33-11.
The Department of Revenue shall assess the property of all telephone companies on
the fifth day of July of each year. In making the assessment, the department shall consider all the
reports, facts, information filed, with any other information obtainable, concerning the value of the
property of all telephone companies and may add any property omitted from the return of the
companies. In making the assessment, which shall be with reference to value and ownership on
January first of the year for which the assessment is made, the department shall take into
consideration, among other things, the amount of gross earnings and net incomes, and the value to
each telephone company of its franchises, rights, and privileges, granted under the laws of this state
to do business in this state. In making the assessment the department shall fix a value on all the
property of each company which is situated within the limits of any city or incorporated town, and
any and all exchanges maintained by the company.
Section 44. That
§
10-33-12
be repealed.
10-33-12.
The Department of Revenue shall also fix the assessed valuation per mile of each class
of the pole line or lines of each company in each county in the state, which valuation shall be the
average value of each class of lines of the company in such county, without corporate limits.
Section 45. That
§
10-33-14
be repealed.
10-33-14.
For the purpose of aiding the Department of Revenue in making an assessment of the
property of telephone companies, it is hereby made the duty of the Public Utilities Commission to
collect information and facts concerning the value of property of each telephone company in this
state, including the value of the franchises, if any, and to make an estimate of the value thereof, and
to make and file with the Department of Revenue, on or before the first day of June of each year, a
written and detailed report of such facts, information, and estimate, and for the purpose of securing
facts and information such commission is authorized to inspect the books, records, and property of
such companies, and employ an expert when deemed necessary, whose compensation shall first be
fixed by such public utilities commission. Failure to furnish such report, however, shall in no manner
invalidate the assessment or tax.
Section 46. That
§
10-33-14.1
be repealed.
10-33-14.1.
For the purpose of determining the true and full value of the property of any
telephone company, the Department of Revenue shall take into consideration the cost approach, the
market approach, and the income approach to appraisal. In the market approach, the department shall
consider the actual or market value of the shares of stock outstanding, the actual or market value of
all bonds outstanding, and all other indebtedness as shall be applicable for operating the company.
In the income approach, the department may consider the company's growth rate and the rate of
inflation in determining the capitalization rate. The Department of Revenue may take into
consideration any other information or data of any kind or nature which the department may deem
material in arriving at the true and full value of the property.
Section 47. That
§
10-33-15
be repealed.
10-33-15.
After the assessment is made, the Department of Revenue shall give notice by mail
to the officers of each telephone company making return to the Department of Revenue, setting out
the assessment and fixing a date at least ten days in advance when the representatives of any
telephone company, so desiring, may appear before the secretary of revenue and be heard in all
matters relating to the correctness of the assessment of the property of the company. The secretary
of revenue may promulgate rules pursuant to chapter 1-26 concerning the conduct of the hearings.
Section 48. That
§
10-33-16
be repealed.
10-33-16.
After such date of hearing, and on or before the fourth Monday of August, the
Department of Revenue shall finally equalize the assessments and notify each company thereof by
mail.
The Department of Revenue shall certify the value finally determined to the county auditor of
each county in which the company assessed owns property.
Section 49. That
§
10-33-18
be repealed.
10-33-18.
The county auditor shall extend the above-mentioned taxes against the assessment
certified to him by the department of revenue in a book to be called "the telephone tax book," and
shall make and deliver a duplicate of such telephone book to the county treasurer and the county
treasurer shall be charged with the collection of such telephone tax.
Section 50. That
§
10-33-19
be repealed.
10-33-19.
All laws relating to the enforcement of the payment of delinquent taxes shall be
applicable to all taxes levied under the provisions of this chapter. Whenever any taxes levied under
the provisions of this chapter shall become delinquent, the county treasurer having control of such
delinquent taxes may proceed to collect the same in the same manner and with the same right and
power as the sheriff under execution, except that no process shall be necessary to authorize him to
sell any property belonging to any telephone company for the collection of such taxes.
Section 51. That
§
10-33-29
be repealed.
10-33-29.
All property of such telephone company, both real and personal, not actually and
necessarily used in the operation and maintenance of its lines in this state shall be considered
"nonoperating property," and nothing in this chapter shall be so construed as to prevent local
assessment and taxation of such "nonoperating property."
Section 52. That
§
10-33-26
be amended to read as follows:
10-33-26.
The tax imposed by
§
10-33-21
shall be
and section 3 of this Act is
in lieu of all taxes
levied by the state, counties, municipalities, townships, school districts, or other political
subdivisions of the state on the personal and real property of the company which is used or intended
for use in the furnishing and providing telephone and exchange service, rental and toll service, but
shall not be
is not
in lieu of the retail occupational sales and use tax, and this chapter
shall in no
manner
does not
exempt such companies from the payment of
such
the
retail occupational sales and
use tax.
Section 53. The effective date of sections 35 to 52, inclusive of this Act, shall be July 1, 1998.
"
Moved by:
Senator Lawler
Second by:
Senator Munson (David)
Action:
Prevailed by voice vote.
MOTION:
TO AMEND TITLE OF HB 1243
f-1243t
On page
1
,
line
2 of the House engrossed bill
,
delete "
revise certain
"
and insert "
repeal certain
taxes levied on property.
"
.
On page
1
,
delete line
3
.
Moved by:
Senator Rounds
Second by:
Senator Whiting
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1243 AS AMENDED
Moved by:
Senator Rounds
Second by:
Senator Everist
Action:
Prevailed by roll call vote.
(8-1-0-0)
Voting yes:
Dunn (Jim), Everist, Munson (David), Hunhoff, Lawler, Whiting, Rounds,
Halverson
Voting no:
Dunn (Rebecca)
Vice-Chair briefly presided during hearing of HB 1243.
HB 1227:
to establish the policy that will guide and direct the creation of a new
advanced telecommunication infrastructure across South Dakota.
MOTION:
AMEND HB 1227
o-1227m
On page
6
,
line
16 of the House State Affairs committee engrossed bill
,
after "
person,
"
insert
"
municipal corporation,
"
.
Moved by:
Senator Rounds
Second by:
Senator Munson (David)
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1227 AS AMENDED
Moved by:
Senator Rounds
Second by:
Senator Everist
Action:
Prevailed by roll call vote.
(9-0-0-0)
Voting yes:
Dunn (Jim), Everist, Munson (David), Dunn (Rebecca), Hunhoff, Lawler, Whiting,
Rounds, Halverson
HB 1222:
to establish a universal telecommunications service fund.
Presented by:
Jim Burg, Public Utilities Commissioner
MOTION:
AMEND HB 1222
o-1222
On page
2
,
line
8 of the printed bill
,
delete "
to define universal service,
"
.
Moved by:
Senator Rounds
Second by:
Senator Everist
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1222 AS AMENDED
Moved by:
Senator Lawler
Second by:
Senator Munson (David)
Action:
Prevailed by roll call vote.
(7-0-2-0)
Voting yes:
Dunn (Jim), Munson (David), Dunn (Rebecca), Hunhoff, Lawler, Whiting, Rounds
Excused:
Everist, Halverson
Vice-Chair Rounds presided during hearing of HB 1222.
Summer studies mentioned.
MOTION:
ADJOURN
Moved by:
Senator Whiting
Second by:
Senator Dunn (Jim)
Action:
Prevailed by voice vote.
Alma Matzen
_________________________________
Committee Secretary
Harold W. Halverson, Chair
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