Committee: House Taxation

"      Section  1.  That § 10-12-43 be amended to read as follows:

     Section  2.  That chapter 10-12 be amended by adding thereto a NEW SECTION to read as follows:

     The governing body of the school district may impose an additional property tax levy through a vote to raise additional revenue on a continuing basis for general fund purposes only. The governing body may not increase the amount of revenue received from one year to the next pursuant to the additional property tax levy permitted by this section. The governing body of a school district may impose an additional property tax levy with an affirmative two-thirds vote of the governing body on or before June fifteenth of the year prior to the year the taxes are payable. The decision of the governing body to impose an additional property tax levy shall be published within twenty days of the decision. The governing body shall hold an election on or before October first and may impose an additional property tax levy if at least sixty percent of the voters of the public body voting on the question, vote in favor of imposing an additional property tax levy. The election shall be held in the manner described by law for school district elections.

     Section  3.  That § 10-13-36 be amended to read as follows:

     10-13-36.   The governing body of a taxing district may exceed the limit pursuant to §   10-13-35 through the imposition of an excess tax levy. The governing body of a taxing district may impose an excess tax levy for one year with an affirmative two-thirds vote of the governing body on or before July fifteenth of the year prior to the year the taxes are payable. The decision of the governing body to originally impose or subsequently increase an excess tax levy 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 taxing district and filed with the respective governing body within twenty days of the publication of the decision. The referendum election shall be held on or before October first preceding the year the taxes are payable. The taxing districts may not exceed the levy limits provided in chapter 10-12 except for the provisions in §   10-12-36.

     Section  4.  That § 10-13-35 be amended to read as follows:

     10-13-35.   This section does not apply to school districts. For taxes payable in 1997, and each year thereafter, the total amount of revenue payable from taxes on real property within a taxing district, excluding the levy pursuant to §   10-13-36 or section 5 of this Act , may increase no more than the lesser of three percent or the index factor, as defined in §   10-13-38, over the amount of revenue payable from taxes on real property in the preceding year, excluding the amount of taxes

levied pursuant to §   10-13-36 or section 5 of this Act . After applying the index factor, a taxing district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except §   10-6-31.4, only if assessed the same as property of equal value. A taxing district may increase the revenue it receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 1997, which are subject to referendum, scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose of paying a judgment against such taxing district. Any taxing district created after the effective date of this section is exempt from the limitation provided by this section for a period of two years immediately following its creation.

     Section  5.  That chapter 10-13 be amended by adding thereto a NEW SECTION to read as follows:

     The governing body of a taxing district may exceed the limit pursuant to §   10-13-35 through a vote to impose an additional property tax levy to raise additional revenue on a continuing basis. The governing body of a taxing district may impose an additional property tax levy with an affirmative two-thirds vote of the governing body on or before June fifteenth of the year prior to the year the taxes are payable. The decision of the governing body to impose an additional property tax levy on a continuing basis shall be published within twenty days of the decision. The governing body shall hold an election on or before October first and may impose an additional property tax levy if at least sixty percent of the voters of the public body voting on the question, vote in favor of imposing an additional property tax levy. The election shall be held in the manner described by law for other elections of the public body. The taxing district may not exceed the levy limits provided in chapter 10-12 except for the provisions in §   10-12-36. "

"      Section 3. That § 10-45-12.1 be amended to read as follows:

     10-45-12.1.   The following services 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 are exempt from the provisions of this chapter: health services (major group 80); educational services (major group 82) except schools and educational services not elsewhere classified (industry no. 8299); social services (major group 83); agricultural services (major group 07) except veterinarian services (group no. 074) and animal specialty services, except veterinary (industry no. 0752); forestry services (group no. 085); radio and television broadcasting (group no. 483); railroad transportation (major group 40); local and suburban passenger transportation (group no. 411) except limousine services ; taxicabs (group no. 412); intercity and rural bus transportation (group no. 413); bus charter service (group 414); school buses (group no. 415); trucking and courier services, except air (group no. 421); farm product warehousing and storage (industry no. 4221); establishments primarily engaged in transportation on rivers and canals (group no. 444); establishments primarily engaged in air transportation, certified carriers (group no. 451); establishments primarily engaged in air transportation, noncertified carriers (group no. 452) except chartered flights (industry no. 4522) and airplane, helicopter, balloon, dirigible and blimp rides for amusement or sightseeing; pipe lines, except natural gas (major group 46); arrangement of passenger transportation (group no. 472); arrangement of transportation of freight and cargo (group no. 473); rental of railroad cars (group no. 474); water supply (industry no. 4941); sewerage systems (industry no. 4952); security brokers, dealers and flotation companies (group no. 621); commodity contracts brokers and dealers (group no. 622); credit counseling services provided by individual and family social services (group no. 8322); construction services (division C) except industry no. 1752; consumer credit reporting agencies, mercantile reporting agencies, and adjustment and collection agencies (group no. 732), if the debt was incurred out-of-state and the client does not reside within the state. The following are also specifically exempt from the provisions of this chapter: financial services of institutions subject to tax under chapter 10-43 including loan origination fees, late payment charges, nonsufficient fund check charges, stop payment charges, safe deposit box rent, exchange charges, commission on travelers checks, charges for administration of trusts, interest charges, and "points" charged on loans; commissions earned or service fees paid by an insurance company to an agent or representative for the sale of a policy; services of brokers and agents licensed

under Title 47; the sale of trading stamps; rentals of motor vehicles as defined by §  32-5-1 leased under a single contract for more than twenty-eight days; advertising services; services provided by any corporation to another corporation which is centrally assessed having identical ownership and services provided by any corporation to a wholly owned subsidiary which is centrally assessed; continuing education programs, tutoring, vocational counseling, except rehabilitation counseling and motion picture rentals to a commercially operated theater primarily engaged in the exhibition of motion pictures; and charges made by a telecommunications company for the origination, transmission, switching, reception or termination of an interstate telephone or telegraph communication.

     Section 4. That § 10-45-70 be repealed.

     10-45-70.   There is imposed a tax of four 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 5. That § 10-45-71 be repealed.

     10-45-71.   There is imposed a tax of four 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 6. That § 10-45-72 be repealed.

     10-45-72.   The tax imposed by § §  10-45-70 to 10-45-81, inclusive, does not apply to any transportation service which the state is prohibited from taxing by federal law or the United States Constitution.

     Section 7. That § 10-45-73 be repealed.

     10-45-73.   The transportation of agricultural products by the agricultural producer thereof is exempt from the tax imposed by § §  10-45-70 to 10-45-81, inclusive, if the producer transports such products in a mode of transportation which is owned, leased, or rented by the producer. However, if an agricultural producer transports another person's products for hire, such transportation is subject to the tax imposed by § §  10-45-70 to 10-45-81, inclusive.

     Section 8. That § 10-45-74 be repealed.

     10-45-74.   Transportation services may only be sold for resale under the following circumstances:

retailer may purchase for resale the services of a transportation company for the delivery of such retailer's tangible personal property.

     Section 9. That § 10-45-75 be repealed.

     10-45-75.   Terms used in § §  10-45-76 to 10-45-78, inclusive, mean:

     10-45-76.   In lieu of the tax imposed by § §  10-45-70 and 10-46-57 on the transportation of fuel, a transportation company may elect to be taxed on the fuel terminal transportation services under the provisions of § §  10-45-75 to 10-45-78, inclusive.

     Section 11. That § 10-45-77 be repealed.

     10-45-77.   There is imposed a tax on the imputed gross receipts of any transportation company engaged in fuel terminal transportation who elects to be taxed under this section. The tax imposed by this section shall be on the imputed gross receipts as provided in this section. The imputed gross receipts from fuel terminal transportation shall be calculated on the basis of the number of cargo vessels and distance traveled on each trip as follows:

Length Imputed Gross
of Trip Number of Cargo Receipts from
Zone (in miles) Vessels per Trip Transportation
A 50 or Less 1 $ 64.00
A 50 or Less 2 or more $ 88.00
B More than 50, but less than 100 1 $120.00

     Section 12. That § 10-45-78 be repealed.

     10-45-78.   For the fuel terminal transportation subject to tax under § §  10-45-75 to 10-45-77, inclusive, all subsequent transportation of that fuel is exempt from the tax imposed under this chapter.

     Section 13. That § 10-45-79 be repealed.

     10-45-79.   The provisions of §  10-45-22 shall also apply to any taxes imposed by § §  10-45-75 to 10-45-77, inclusive, on transportation services regardless of any special reporting election the taxpayer may have made.

     Section 14. That § 10-45-81 be repealed.

     10-45-81.   There are exempted from the provisions of this chapter and the tax imposed by it, the gross receipts from transportation services associated with timber sale contracts entered into prior to July 1, 1996, provided such contract has a duration of one year or less.

     Section 15. That § 10-46-57 be repealed.

     10-46-57.   There is imposed a tax of four 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 16. That § 10-46-58 be repealed.

     10-46-58.   There is imposed a tax of four 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 17. That § 10-46-59 be repealed.

     10-46-59.   The tax imposed by § §  10-46-57 to 10-46-61, inclusive, does not apply to any transportation service which the state is prohibited from taxing by federal law or the United States Constitution.

     Section 18. That § 10-46-60 be repealed.

     Section 19. That § 10-46-61 be repealed.

     10-46-61.   There are exempted from the provisions of this chapter and the tax imposed by it, the use of transportation services associated with timber sale contracts entered into prior to July 1, 1996, provided such contract has a duration of one year or less. "

"      Section 1. Any person who is at least twenty-one years of age may receive no more than twelve cases of wine, containing no more than nine liters per case, in any calendar year for personal use from another state without payment of state tax, fees, or charges, except as provided in this Act, if a reciprocal agreement exists with the state from which the wine is sent. For tax purposes, receipt of a shipment of wine into this state does not constitute a sale in this state. No person who receives wine may resell any of the wine.

     Section 2. Any licensee who holds a license for the retail sale of wine for consumption off the licensed premises may ship no more than twelve cases of wine, containing no more than nine liters per case, per shipment, for personal use and not for resale, directly to a resident of another state if the state to which the wine is sent allows residents of the state to receive wine sent from outside that state. The sale shall be considered to have occurred in this state.

     Section 3. Any container of wine being shipped into or out of this state shall be clearly labeled to indicate that it contains alcoholic beverages and that it may not be delivered to a person who is not at least twenty-one years of age or to a person who is visibly intoxicated.

     Section 4. For the purposes of out-of-state shipments, no delivery person may make delivery to any person who is under twenty-one years of age or to any person who is visibly intoxicated. The delivery person shall:

     Section 6. Any person who receives wine in this state pursuant to the provisions of this Act shall pay an annual permit fee to the Department of Revenue. The permit expires on July first. Proceeds from this fee shall be deposited in the general fund. The amount of the permit fee shall be equal to the tax that would normally apply to the wine received plus a fee sufficient to cover administrative costs. The Department of Revenue shall promulgate rules pursuant to chapter 1-26 to provide for the administration of the permit fee. "

Beverly Jennings