Committee: House Taxation
HB 1137:
to repeal the video lottery and to increase the sales and use tax.
Presented by:
Representative Steve Cutler, prime sponsor, Claremont
Vice Chair Wick assumed the chair.
MOTION:
DO PASS HB 1137
Moved by:
Representative Cutler
Second by:
Representative Peterson (Bill)
Action:
Prevailed by roll call vote.
(7-6-0-0)
Voting yes:
Apa, Fiegen, Koskan, Peterson (Bill), Waltman, Wick, Cutler
Voting no:
Belatti, Diedrich, Napoli, Barker, Kazmerzak, Moore
"
Section 1. That the following Act be enacted by the South Dakota Legislative Assembly and
referred to the vote of the electors of the state at the next general election to be held in the year 1998
for their approval:
FOR AN ACT ENTITLED, An Act
to repeal the video lottery.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
"
Moved by:
Representative Apa
Second by:
Representative Waltman
Action:
Prevailed by voice vote.
MOTION:
AMEND HB 1189
"
Section 11. That
§
10-45-2
be amended to read as follows:
10-45-2.
There is hereby imposed a tax upon the privilege of engaging in business as a retailer,
a tax of
four
five
percent upon the gross receipts of all sales of tangible personal property consisting
of goods, wares, or merchandise, except as taxed by
§
10-45-3 and except as otherwise provided in
this chapter, sold at retail in the State of South Dakota to consumers or users.
Section 12. That
§
10-45-3
be amended to read as follows:
10-45-3.
There is hereby imposed a tax of
three
four
percent on the gross receipts from the sale
or resale of farm machinery and attachment units other than replacement parts; or irrigation
equipment used exclusively for agricultural purposes by licensed South Dakota retailers; provided,
however, that whenever any trade-in or exchange of used farm machinery is involved in the
transaction, the tax shall only be due and collected on the cash difference.
Section 13. That
§
10-45-5
be amended to read as follows:
10-45-5.
There is imposed a tax at the rate of
three
four
percent upon the gross receipts of any
person from engaging in the business of leasing farm machinery or irrigation equipment used for
agricultural purposes and
four
five
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;
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 or services; photography; photo developing and enlarging; tire recapping; welding and all
repair services; 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 by
§
32-5-1 leased under a single contract for more than twenty-eight days and mobile
homes provided, however, that the specific enumeration of businesses and professions made in this
section does not, in any way, limit the scope and effect of
§
10-45-4.
Section 14. That
§
10-45-5.3
be amended to read as follows:
10-45-5.3.
There is imposed, at the rate of
three
four
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.
Section 15. That
§
10-45-6
be amended to read as follows:
10-45-6.
There is hereby imposed a tax of
four
five
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 to
consumers or users.
Section 16. That
§
10-45-6.1
be amended to read as follows:
10-45-6.1.
There is hereby imposed on amounts paid for local telephone services, toll telephone
services and teletypewriter services, a tax of
four
five
percent of the amount so paid. The taxes
imposed by this section shall be paid by the person paying for the services. If a bill is rendered the
taxpayer for local telephone service or toll telephone service, the amount on which the tax with
respect to such services shall be based shall be the sum of all charges for such services included in
the bill; except that if a person who renders the bill groups individual items for purposes of rendering
the bill and computing the tax, then the amount on which the tax for each such group shall be based
shall be the sum of all items within that group, and the tax on the remaining items not included in
any such group shall be based on the charge for each item separately. If the tax imposed by this
section with respect to toll telephone service is paid by inserting coins in coin operated telephones,
the tax shall be computed to the nearest multiple of five cents, except that, where the tax is midway
between multiples of five cents, the next higher multiple shall apply. The tax so paid shall be
remitted at the same time as the sales tax imposed by this chapter.
Section 17. That
§
10-45-8
be amended to read as follows:
10-45-8.
There is imposed a tax of
four
five
percent upon the gross receipts from all sales of
tickets or admissions to places of amusement and athletic events, except as otherwise provided in
this chapter.
10-45-70.
There is imposed a tax of
four
five
percent on the gross receipts from the
transportation of tangible personal property. The tax imposed by this section shall apply to any
transportation of tangible personal property if both the origin and destination of the tangible personal
property are within this state.
Section 19. That
§
10-45-71
be amended to read as follows:
10-45-71.
There is imposed a tax of
four
five
percent on 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.
Section 20. That
§
10-46-2.1
be amended to read as follows:
10-46-2.1.
For the privilege of using services in South Dakota, except those types of services
exempted by
§
10-46-17.3, there is imposed on the person using the service an excise tax equal to
four
five
percent of the value of the services at the time they are rendered. However, this tax 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.
§
1563(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
the
employer are not taxable.
Section 21. That
§
10-46-2.2
be amended to read as follows:
10-46-2.2.
An excise tax is imposed upon the privilege of the use of rented tangible personal
property in this state at the rate of
four
five
percent of the rental payments upon the property.
Section 22. That
§
10-46-57
be amended to read as follows:
10-46-57.
There is imposed a tax of
four
five
percent on the privilege of the use of any
transportation of tangible personal property. The tax imposed by this section shall apply to any
transportation of tangible personal property if both the origin and destination of the tangible personal
property are within this state.
Section 23. That
§
10-46-58
be amended to read as follows:
10-46-58.
There is imposed a tax of
four
five
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.
"
"
Section 11. The Legislature shall impose an income tax, and the revenue and interest generated
by such tax, less the cost of administration, is dedicated to fund the repeal of the video lottery.
"
Jenelle Busse