73rd Legislative Session -- 1998
Committee: House Taxation
Tuesday, February 10, 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 FEBRUARY 4 AND 5, 1998
Moved by:
Representative Kazmerzak
Second by:
Representative Fiegen
Action:
Prevailed by voice vote.
HB 1237:
to revise the property tax levies for the general fund of a school district.
Proponents:
None.
Opponents:
None.
Presented by:
Representative Larry Gabriel, prime sponsor, Cottonwood
MOTION:
DO PASS HB 1237
Moved by:
Representative Koskan
Second by:
Representative Fiegen
Action:
Prevailed by roll call vote.
(10-1-2-0)
Voting yes:
Apa, Belatti, Fiegen, Koskan, Napoli, Peterson (Bill), Moore, Waltman, Wick,
Cutler
Voting no:
Kazmerzak
Excused:
Diedrich, Barker
HB 1238:
to establish a telecommunications gross receipts tax, to provide for its
distribution, and to repeal certain property taxes and certain gross receipts taxes
paid by certain telecommunications companies.
Proponents:
Larry Toll, lobbyist, US West, Sioux Falls
Opponents:
None
Presented by:
Representative Larry Gabriel, prime sponsor, Cottonwood
Comments by: John McNamara, AT&T
MOTION:
AMEND HB 1238
f-1238
On page
2
,
delete lines
21
to
24 of the printed bill
, inclusive
,
and insert:
"
Section 7. The county may increase the revenue payable from taxes on real property above
limitations provided in
§
10-13-35 by the amount of revenue that is lost by the county as a result of
this Act for taxes payable in calendar year 1999.
"
On page
3
,
delete lines
1
to
3
, inclusive
.
Moved by:
Representative Diedrich
Second by:
Representative Moore
Action:
Prevailed by voice vote.
MOTION:
AMEND HB 1238
f-1238a
On page
3
,
after line
15 of the printed bill
,
insert:
"
Section 9A. By January 31, 2000, the secretary shall determine if any telecommunications
company paid more property taxes for calendar year 1998 pursuant to section 9 of this Act than the
telecommunications company paid in telecommunications gross receipts tax pursuant to this Act for
calendar year 1999. If any telecommunications company paid a greater amount of property taxes for
calendar year 1998 than it paid in telecommunications gross receipts tax for calendar year 1999, the
secretary shall assess the telecommunications company the amount of the difference. The
telecommunications company shall pay the assessment to the department by March 1, 2000. Any
assessment collected shall be deposited in a special fund to be used for the schools 21st century
technology program. The moneys deposited in the fund shall be appropriated pursuant to chapter 4-7
for use by the schools 21st century technology program.
"
Moved by:
Representative Wick
Second by:
Representative Waltman
Action:
Prevailed by voice vote.
MOTION:
AMEND HB 1238
f-1238b
On page
2
,
line
7 of the printed bill
,
after "
resold
"
insert "
or becomes a component part of the
sale
"
.
Moved by:
Representative Koskan
Second by:
Representative Fiegen
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1238 AS AMENDED
Moved by:
Representative Diedrich
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 1293:
to increase certain state sales and use taxes, exempt transportation
services from sales and use taxes, revise the exemptions for inheritance taxes,
provide property tax relief, repeal certain municipal sales and use taxes, and replace
the municipal revenue lost from sales and use taxes.
Proponents:
Jerry Wheeler, lobbyist, SD Retailers Association, Pierre
Marie Ingalls, lobbyist, SD Farm Bureau, Huron
Opponents:
Yvonne Vik, lobbyist, SD Municipal League, Pierre
Presented by:
Representative Donald Munson, prime sponsor, Yankton (Document 1)
MOTION:
DEFER HB 1293 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Wick
Second by:
Representative Barker
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Belatti, Fiegen, Peterson (Bill), Barker, Kazmerzak, Waltman, Wick, Cutler
Voting no:
Apa, Diedrich, Koskan, Napoli, Moore
HJR 1005:
Proposing and submitting to the electors at the next general election a
new section to Article XI of the Constitution of the State of South Dakota, relating
to the imposition of a corporate income tax.
Proponents:
None.
Opponents:
Ray Trankle, lobbyist, Industry and Commerce Association of SD, Pierre
John Brown, lobbyist, National Federation of Independent Business, Pierre
Presented by:
Representative Robert Weber, prime sponsor, Strandburg
MOTION:
DO PASS HJR1005
Moved by:
Representative Waltman
Second by:
Representative Kazmerzak
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HJR1005 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Koskan
Second by:
Representative Peterson (Bill)
Action:
Prevailed by roll call vote.
(10-3-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker, Moore, Wick,
Cutler
Voting no:
Apa, Kazmerzak, Waltman
HB 1231:
to exempt transportation services from sales and use taxes.
Proponents:
Randy Tinnell, representing self, loghauler, Whitewood
R. Van Johnson, lobbyist, executive director, SD Trucking Association, Sioux Falls
Representative Robert Weber, sponsor, Strandburg
Carl Anderson, lobbyist, SD Feed and Grain Association, Aberdeen
Jim Hood, lobbyist, Pope and Talbot, Inc., Spearfish
Representative Dean Schrempp, Lantry
Jim Keyes, lobbyist, executive vice president, Associated General Contractors,
Pierre
Ray Trankle, lobbyist, Industry and Commerce Association of SD, Pierre
Opponents:
Scott Peterson, Dept. Of Revenue, Pierre
Presented by:
Representative Kay Jorgensen, prime sponsor, Spearfish
MOTION:
DO PASS HB 1231
Moved by:
Representative Waltman
Second by:
Representative Apa
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION AMEND HB 1231
f-1231
On page
2
,
line
3 of the printed bill
,
overstrike everything after "
except
"
.
On page 2, overstrike the first "and".
Moved by:
Representative Barker
Second by:
Representative Belatti
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1231 AS AMENDED
Moved by:
Representative Waltman
Second by:
Representative Apa
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HB 1231 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Koskan
Second by:
Representative Fiegen
Action:
Prevailed by roll call vote.
(7-6-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Koskan, Peterson (Bill), Wick, Cutler
Voting no:
Apa, Napoli, Barker, Kazmerzak, Moore, Waltman
Vice Chair Wick assumed the chair.
HB 1289:
to increase the state's percentage of video lottery machine income and
to provide for the repeal of the video lottery.
HB 1289 was heard on February 5 and deferred to the 36th legislative day.
Presented by:
Representative James Sperry, prime sponsor, Bath
MOTION:
RECONSIDER THE VOTE BY WHICH HB 1289 LOST
Moved by:
Representative Cutler
Second by:
Representative Peterson (Bill)
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Apa, Fiegen, Koskan, Peterson (Bill), Kazmerzak, Waltman, Wick, Cutler
Voting no:
Belatti, Diedrich, Napoli, Barker, Moore
MOTION:
DO PASS HB 1289
Moved by:
Representative Cutler
Second by:
Representative Koskan
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HB 1289 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Napoli
Second by:
Representative Barker
Action:
Failed by roll call vote.
(6-7-0-0)
Voting yes:
Belatti, Diedrich, Napoli, Barker, Kazmerzak, Moore
Voting no:
Apa, Fiegen, Koskan, Peterson (Bill), Waltman, Wick, Cutler
MOTION:
SUBSTITUTE MOTION WITHOUT RECOMMENDATION
Moved by:
Representative Apa
Second by:
None
Action:
Died for a lack of a second
MOTION:
SUBSTITUTE MOTION TO TABLE HB 1289
Moved by:
Representative Moore
Second by:
Representative Barker
Action:
Prevailed by roll call vote.
(7-6-0-0)
Voting yes:
Apa, Belatti, Diedrich, Napoli, Barker, Kazmerzak, Moore
Voting no:
Fiegen, Koskan, Peterson (Bill), Waltman, Wick, Cutler
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.
Presented by:
Representative Steve Cutler, prime sponsor, Claremont (Document 2)
MOTION:
AMEND HB 1130
f-1130b
On the printed bill,
delete everything after the enacting clause and insert:
"
Section
1.
That
§
10-4-9.3
be amended to read as follows:
10-4-9.3.
Property owned by any corporation, organization or society and used primarily for
human health care and health care related purposes is exempt from taxation. Such corporation,
organization or society must be nonprofit and recognized as an exempt organization under section
501(c)(3) of the United States Internal Revenue Code of 1954, as amended, and in effect on January
1, 1986, and may not have any of its assets available to any private interest. Such property may be
a hospital, sanitarium, orphanage, mental health center or adjustment training center regulated under
chapter 27A-5, asylum, home, resort, congregate housing or camp. Congregate housing is health care
related if it is an assisted, independent group-living environment operated by a health care facility
licensed under chapter 34-12 which offers residential accommodations and supporting services
primarily for persons at least sixty-two years of age or disabled as defined under chapter 10-6A.
However, only that portion of the congregate housing property occupied by persons who meet the
guidelines in section 2 of this Act is exempt from taxation
Supporting services must include the
ability to provide health care and must include a food service which provides a balanced nutrition
program. Such health care facility must admit all persons for treatment consistent with the facility's
ability to provide medical services required by the patient until such facility is filled to its ordinary
capacity and must conform to all regulations of and permit inspections by the South Dakota
Department of Health.
Section
2.
That chapter 10-4 be amended by adding thereto a NEW SECTION to read as follows:
If any person living in a congregate housing facility pays rent and fees in excess of the
schedule provided in this section, the portion of the congregate housing facility so occupied shall
be classified as nonagricultural property and taxed as other property of the same class is taxed. For
the purpose of determining the taxable value of the property that is not exempt from taxation, the
assessed value of the entire property shall be multiplied by the percentage of the entire property
occupied pursuant to the following schedule:
(1) If a person pays one thousand dollars or more per month for rent and other fees, then one
hundred percent of the assessed value of the property so occupied is taxable;
(2) If a person pays more than five hundred dollars but less than one thousand dollars per
month for rent and other fees, then the fraction, represented by the amount paid in excess
of five hundred dollars per month for rent and other fees is divided by five hundred
dollars, is multiplied against the assessed value of the property so occupied by such
person and this portion of the property is taxable; and
(3) If a person pays five hundred dollars or less for rent and other fees, then one hundred
percent of the assessed value of the property so occupied is exempt from taxation.
"
Moved by:
Representative Koskan
Second by:
Representative Apa
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HB 1130 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Fiegen
Second by:
Representative Diedrich
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Peterson (Bill), Barker, Kazmerzak, Waltman, Wick
Voting no:
Apa, Koskan, Napoli, Moore, Cutler
Chair Cutler assumed the chair.
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 and February 3, 1998.
Presented by:
Representative Jerry Apa, prime sponsor, Lead
MOTION:
AMEND HB 1002
f-1002e
On the printed bill,
delete everything after the enacting clause 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 gross income of the owner
is derived from the pursuit of agriculture as defined in subdivision (2) of this section or
it is a state-owned public shooting area or a state-owned game production area as
identified in
§
41-4-8 and it is owned and managed by the Department of Game, Fish
and Parks;
(2)
Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees,
the rearing, feeding
,
and management of farm livestock, poultry, fish
,
or nursery stock,
the production of bees and apiary products, or horticulture, all for intended profit pursuant
to subdivision (1) of this section. Agricultural real estate also includes woodland,
wasteland
,
and pasture land, but only if the land is held and operated in conjunction with
agricultural real estate as defined and it is under the same ownership;
(3)
It consists of not less than
twenty
fifty
acres of unplatted land or is a part of a contiguous
ownership of not less than eighty acres of unplatted land. The same acreage specifications
apply to platted land, excluding land platted as a subdivision, which is in an
unincorporated area. However, the board of county commissioners may increase the
minimum acre requirement up to one hundred sixty acres.
"
Moved by:
Representative Apa
Second by:
Representative Peterson (Bill)
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1002 AS AMENDED
Moved by:
Representative Napoli
Second by:
Representative Waltman
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HB 1002 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Barker
Second by:
Representative Moore
Action:
Prevailed by roll call vote.
(7-6-0-0)
Voting yes:
Belatti, Fiegen, Peterson (Bill), Barker, Moore, Waltman, Wick
Voting no:
Apa, Diedrich, Koskan, Napoli, Kazmerzak, Cutler
HJR 1001:
Proposing and submitting to the electors at the next general election a
new section to Article XI of the Constitution of the State of South Dakota, relating
to the imposition of an individual and corporate income tax.
Previous testimony on HJR 1001 was taken on January 22, 1998.
MOTION:
AMEND HJR1001
f-j1001
On page
1
,
line
14 of the printed resolution
,
after "
relief
"
insert "
by eliminating the tax levy for
the general fund of each school district. The revenue and interest generated by such tax shall be
distributed through the state aid to education.
"
.
On page
1
,
line
14
,
delete "
and corporate
"
.
On page
1
,
line
15
,
after "
income
"
insert "
and the rate of taxation imposed on corporate income
may not exceed two percent of the federal taxable income
"
.
Moved by:
Representative Apa
Second by:
Representative Waltman
Action:
Prevailed by voice vote.
MOTION:
DEFER HJR1001 UNTIL THE 36TH LEGISLATIVE DAY
Moved by:
Representative Napoli
Second by:
Representative Barker
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Belatti, Diedrich, Fiegen, Napoli, Peterson (Bill), Barker, Moore, Wick
Voting no:
Apa, Koskan, Kazmerzak, Waltman, Cutler
HJR 1007:
Proposing and submitting to the electors at the next general election a
new section to Article XI of the Constitution of the State of South Dakota,
imposing an individual and corporate income tax, exempting food, utilities,
residential heating fuel, certain intrastate transportation services, collection and
disposal of solid waste, and auction goods from sales and use taxes, providing
property tax relief through the general fund levy of a school district, and increasing
state aid to education.
HJR 1007 was heard on February 4, 1998, and was tabled.
MOTION:
REMOVE HJR1007 FROM TABLE
Moved by:
Representative Waltman
Second by:
Representative Apa
Action:
Failed by roll call vote.
(4-9-0-0)
Voting yes:
Apa, Kazmerzak, Waltman, Cutler
Voting no:
Belatti, Diedrich, Fiegen, Koskan, Napoli, Peterson (Bill), Barker, Moore, Wick
MOTION:
ADJOURN
Moved by:
Representative Diedrich
Second by:
Representative Wick
Action:
Prevailed by voice vote.
Jenelle Busse
_________________________________
Committee Secretary