73rd Legislative Session -- 1998
Committee: House Taxation
Tuesday, February 3, 1998
P - Present
E - Excused
A - Absent
Roll Call
P
Apa
P
Belatti
P
Diedrich
P
Fiegen
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 Chair Cutler.
MOTION:
TO APPROVE THE MINUTES OF JANUARY 29, 1998
Moved by:
Representative Napoli
Second by:
Representative Fiegen
Action:
Prevailed by voice vote.
HB 1284:
to revise the factors used in determining the value of agricultural land.
Proponents:
Bernice Rice, SD Association of Assessing Officers, Custer
Opponents:
Dennis Hanson, SD Association of County Commissioners, Pierre
Presented by:
Representative Kenneth McNenny, prime sponsor, Sturgis
MOTION:
DO PASS HB 1284
Moved by:
Representative Apa
Second by:
Representative Koskan
Action:
Prevailed by roll call vote.
(10-0-3-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker, Wick,
Cutler
Excused:
Kazmerzak, Moore, Waltman
HB 1292:
to classify certain land as nonagricultural acreage and revise the tax levy
for the general fund purposes of a school district.
Proponents:
Representative Kay Jorgensen, sponsor, Spearfish
Jim Fry, Department of Revenue, Pierre
Opponents:
None.
Presented by:
Representative Kenneth McNenny, prime sponsor, Sturgis
MOTION:
AMEND HB 1292
f-1292a
On page
2
,
delete lines
17
to
20 of the printed bill
, inclusive
,
and insert:
"
Section 5. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:
Land classified pursuant to this Act shall be valued for ad valorem tax purposes at the price
for which such land sold multiplied times the level of assessment for nonagricultural property within
the county. The value of such land shall be increased or decreased each year by the same percentage
that the value of nonagricultural property increases or decreases.
"
On page
3
,
delete lines
2
to
7
, inclusive
.
Moved by:
Representative Peterson (Bill)
Second by:
Representative Diedrich
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1292 AS AMENDED
Moved by:
Representative Apa
Second by:
Representative Napoli
Action:
Prevailed by roll call vote.
(12-0-1-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker,
Kazmerzak, Waltman, Wick, Cutler
Excused:
Moore
HB 1297:
to revise the procedure that determines the value of agricultural property.
Proponents:
None.
Opponents:
Jim Fry, Dept. Of Revenue, Pierre
Dennis Hanson, SD Association of County Commissioners, Pierre
Presented by:
Henning Hanson, SD Association of Towns and Townships, Elkton
MOTION:
DEFER HB 1297 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Napoli
Second by:
Representative Belatti
Action:
Prevailed by roll call vote.
(11-1-1-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker, Waltman,
Wick, Cutler
Voting no:
Kazmerzak
Excused:
Moore
HB 1233:
to repeal certain provisions regarding the classification of agricultural
land.
Previous testimony on HB 1233 was taken on January 27, 1998.
Proponents:
None.
Opponents:
None.
Presented by:
Representative Kay Jorgensen, prime sponsor, Spearfish
MOTION:
DO PASS HB 1233
Moved by:
Representative Diedrich
Second by:
Representative Apa
Action:
Prevailed by roll call vote.
(12-0-1-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker,
Kazmerzak, Waltman, Wick, Cutler
Excused:
Moore
HB 1261:
to exempt food from sales and uses taxes.
Proponents:
Representative Roland Chicoine, Elk Point
Representative Caitlin Collier, sponsor, Vermillion
Fran Smith, Holabird (Document 1)
Cathy Brechtelsbauer, Bread for the World, Sioux Falls
Opponents:
Scott Peterson, Dept. Of Revenue, Pierre
Yvonne Vik, SD Municipal League, Pierre
Marie Ingalls, lobbyist, SD Farm Bureau, Huron
Presented by:
Representative Linda Barker, prime sponsor, Sioux Falls
MOTION:
DEFER HB 1261 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Napoli
Second by:
Representative Koskan
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION TO TABLE HB 1261
Moved by:
Representative Waltman
Second by:
Representative Kazmerzak
Action:
Prevailed by roll call vote.
(7-6-0-0)
Voting yes:
Apa, Fiegen, Koskan, Napoli, Kazmerzak, Waltman, Cutler
Voting no:
Belatti, Diedrich, Peterson (Bill), Barker, Moore, Wick
HB 1181:
to require the Department of Revenue to insure cigarette stamps, if the
stamps are shipped to the licensed distributor, and to limit the dollar value of
stamps that may be contained in one package.
Proponents:
None.
Opponents:
Jim Fry, Department of Revenue, Pierre
Presented by:
Representative Garry Moore, prime sponsor, Yankton (used visual aids showing
mailing supplies used to ship cigarette stamps)
MOTION:
DEFER HB 1181 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Apa
Second by:
Representative Fiegen
Action:
Prevailed by roll call vote.
(9-4-0-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Wick, Cutler
Voting no:
Barker, Kazmerzak, Moore, Waltman
HB 1016:
to provide for a discretionary assessment of certain nonagricultural
property and to defer the payment of certain property taxes.
Previous testimony on HB 1016 was taken on January 20, 1998, and a subcommittee was appointed..
MOTION:
AMEND HB 1016
f-1016a
On the printed bill,
delete everything after the enacting clause and insert:
"
Section
1.
That chapter 10-52 be amended by adding thereto a NEW SECTION to read as
follows:
A municipality, which has entered into an agreement with a county as required by this Act,
may adopt a non-ad valorem tax of one percent over and above the other limits allowed by chapter
10-52. The tax shall be levied for the purpose of reimbursing a county for the expenses related to
additional police and fire protection and other costs involved with hosting a special event being held
within the county boundaries.
Any tax levied pursuant to this Act shall conform in all respects to the state sales and use tax
on such items with the exception of the rate. The tax may only be levied for one or two months in
any given year during the time a special event is being held within the municipality or county.
Before a tax may be levied pursuant to this Act, the county shall make a declaration of necessity to
requesting the municipality to levy such a tax to reimburse the county for expenses related to the
event. The special event shall occur annually and demonstrate a significant economic impact on the
municipality or county. The economic impact shall be measured by comparing the previous year's
or years' sales and use tax revenue on a monthly basis. If the non-ad valorem revenue during the
month or months of the special event is twenty percent higher then the month or months either
preceding or following the special event, the municipality, through an agreement with a county, may
impose an additional non-ad valorem tax of one percent.
Section
2.
That chapter 10-52 be amended by adding thereto a NEW SECTION to read as
follows:
If a municipality agrees to levy the additional non-ad valorem tax, the municipality shall enter
an agreement with the county permitting the Department of Revenue to forward any revenue
resulting from tax imposed by this Act directly to the county. The county shall place this revenue
into a designated fund to be used to reduce the county's property tax levy in the following year. The
amount of revenue received by the county pursuant to this Act shall be considered part of the
revenue payable from taxes on real property and may be increased by the index factor as other taxes
on real property are increased pursuant to
§
10-13-35.
Section
3.
That chapter 10-52 be amended by adding thereto a NEW SECTION to read as
follows:
Any tax imposed by the governing board of any municipality pursuant to the provisions of this
Act, may be referred to a vote of the people for its approval or disapproval in the same manner as
provided in chapter 9-20. Any agreement approved by the governing board of any county pursuant
to the provisions of this Act, may be referred to a vote of the people for its approval or disapproval
in the same manner as provided pursuant to chapter 7-18A.
Section
4.
That chapter 10-52 be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding
§
9-19-13 any ordinance enacted under the authority of this Act, is effective
only on first day of the month and ends on the last day of the month as specified in the ordinance.
The governing body of the municipality, pursuant to an agreement with the county, may impose the
tax levy with an affirmative two-thirds vote of the governing body at least ninety days before the tax
shall be imposed by this Act. The decision of each governing body to impose the tax levy and enter
into an agreement shall be published within ten days of the decision. The decision may be referred
upon a petition signed by at least five percent of the registered voters in the governing body and filed
with the respective governing body within twenty days of the publication of the decision. The
referendum election shall be held within thirty days of the date the petition is filed with the
governing body. Notification of the enactment or approval of the ordinance shall be in writing and
mailed, along with a copy of the ordinance and agreement with the county, by registered or certified
mail to the secretary of revenue at least thirty days before the tax is to be levied.
"
Moved by:
Representative Peterson (Bill)
Second by:
Representative Waltman
Action:
Was not acted on.
MOTION:
TO TABLE HB 1016 AND THE PENDING AMENDMENT
Moved by:
Representative Barker
Second by:
Representative Napoli
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Napoli, Barker, Kazmerzak, Moore, Cutler
Voting no:
Apa, Koskan, Peterson (Bill), Waltman, Wick
HB 1130:
to remove the property tax exemption provided to certain congregate
housing facilities.
Previous testimony on HB 1130 was taken on January 27, 1998.
Opponents:
Roberta Vogt, AARP, Aberdeen
Chair Cutler deferred HB 1130 to a later date.
HB 1002:
to revise the criteria required for land to be classified as agricultural land.
Previous testimony on HB 1002 was taken on January 20, 1998.
Presented by:
Representative Jerry Apa, prime sponsor, Lead
MOTION:
AMEND HB 1002
f-1002b
On page
1
,
delete lines
5
to
8 of the printed bill
, inclusive
,
and insert:
"
Section 1. That
§
10-6-31.3
be amended to read as follows:
10-6-31.3.
For tax purposes, land is agricultural land if
it meets two of the following
three criteria:
(1)
At least thirty-three and one-third percent of the total family
the owner or operator of the
agricultural land averages at least six thousand dollars of
gross income
of the owner
for
the previous three years and the gross income
is derived from the pursuit of agriculture
as
"
On page
1
,
line
9
,
overstrike "
(2)
"
and insert "
(1)
"
.
On page
1
,
line
11
,
overstrike "
;
"
and insert "
. The land shall also meet one of the following two
criteria:
"
.
On page
1
,
line
12
,
overstrike "
(2)
"
and insert "
(1)
"
.
On page
2
,
line
4
,
overstrike "
(3)
"
and insert "
(2)
"
.
On page
2
,
line
4
,
overstrike "
twenty
"
and insert "
fifty
"
.
Moved by:
Representative Apa
Second by:
Representative Napoli
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION TO TABLE HB 1002 AND THE PENDING
AMENDMENT
Moved by:
Representative Barker
Second by:
Representative Belatti
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Peterson (Bill), Barker, Moore, Wick, Cutler
Voting no:
Apa, Koskan, Napoli, Kazmerzak, Waltman
HB 1202:
to allow privately owned real property to be specifically classified for the
purpose of taxation if the property is open for public hunting through an agreement
with the State of South Dakota.
Presented by:
Representative Dana Windhorst, prime sponsor, Sioux Falls
MOTION:
DEFER HB 1202 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Moore
Second by:
Representative Peterson (Bill)
Action:
Prevailed by roll call vote.
(13-0-0-0)
Voting yes:
Apa, Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker,
Kazmerzak, Moore, Waltman, Wick, Cutler
MOTION:
ADJOURN
Moved by:
Representative Fiegen
Second by:
Representative Koskan
Action:
Prevailed by voice vote.
Jenelle Busse
_________________________________
Committee Secretary
Steve Cutler, Chair
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