84th Legislative Session _ 2009

Committee: House Taxation
Thursday, February 19, 2009

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Cutler
P    Feickert
P    Gibson
P    Greenfield
P    Hunhoff (Bernie)
P    Juhnke
P    Kirkeby
P    Kirschman
P    Lange
P    Lederman
P    Noem, Vice-Chair
P    Russell
P    Solum
P    Thompson
P    Olson (Ryan), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Ryan Olson, Chair.

MOTION:     TO APPROVE THE MINUTES OF TUESDAY, FEBRUARY 17, 2009.

Moved by:    Noem
Second by:    Gibson
Action:    Prevailed by voice vote.

        
HB 1072: repeal certain exemptions from the sales tax and the use tax and to repeal certain provisions concerning the delayed remittance of sales and use taxes for certain businesses.



MOTION:     AMEND HB 1072

1072fe

     On page 4 of the printed bill, delete lines 22 to 24, inclusive.

     On page 5, delete lines 1 to 8, inclusive.


Moved by:    Hunhoff (Bernie)
Second by:    Greenfield
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1072 AS AMENDED

Moved by:    Noem
Second by:    Hunhoff (Bernie)
Action:    Prevailed by roll call vote. (10-4-1-0)

Voting Yes:    Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Lange, Lederman, Noem, Russell, Solum, Olson (Ryan)

Voting No:    Feickert, Gibson, Kirschman, Thompson

Excused:    Cutler

MOTION:     AMEND TITLE OF HB 1072

1072fta

     On page 1, line 1, of the printed bill, delete everything after "Act to" .

     On page 1, line 2, delete "tax and to".


Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by voice vote.

        
HB 1073: repeal certain sales and use tax exemptions and to revise certain sales and use tax exemptions.


MOTION:     AMEND HB 1073

1073fb

     On page 3 of the printed bill, delete lines 2 to 10, inclusive.

     On page 4, delete lines 4 to 12, inclusive.


Moved by:    Noem
Second by:    Greenfield
Action:    Prevailed by voice vote.

MOTION:     AMEND HB 1073

1073fc

     On page 3 of the printed bill, delete lines 11 to 13, inclusive.


Moved by:    Greenfield
Second by:    Russell
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1073 TO THE 41ST LEGISLATIVE DAY

Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Prevailed by roll call vote. (9-5-1-0)

Voting Yes:    Feickert, Gibson, Hunhoff (Bernie), Kirschman, Lange, Lederman, Russell, Solum, Thompson

Voting No:    Greenfield, Juhnke, Kirkeby, Noem, Olson (Ryan)

Excused:    Cutler

        
HB 1229: extend the time frame for when the gross receipts tax on visitor-related businesses is imposed and to transfer money to the general fund from the tourism promotion fund.

Presented by:    Representative Kristi Noem
Proponents:    Representative Bernie Hunhoff
        Richard Benda, Department of Tourism and State Development (Handouts: #1)
        Lorin Pankratz, Vacation Industry Alliance
        Bill Honerkamp, Black Hills, Badlands & Lakes Association

MOTION:     AMEND HB 1229

1229fg
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That §   10-45D-2 be amended to read as follows:

     10-45D-2.   There is hereby imposed a tax of one and one-half percent on the gross receipts from any lodging establishment, campground, motor vehicle rental, visitor attraction, recreational equipment rental, recreational service, spectator event, and visitor-intensive business. The tax imposed by this section on the gross receipts of any visitor-intensive business shall apply to the gross receipts received by such business during the months of June, July, August, and September. The tax imposed by this section is in addition to any other tax imposed by chapters 10-45 and 10-46. Tangible personal property, any product transferred electronically, services, and admissions are subject to the tax imposed by this section only if subject to tax by chapters 10-45 and 10-46.

     Section 2. That §   1-42-31 be amended to read as follows:

     1-42-31.   There is hereby established a tourism promotion fund in the Department of Tourism and State Development. The fund shall be used for the purposes and functions set forth in chapter 1-22 for the South Dakota State Arts Council and chapter 1-52 for the Department of Tourism and State Development. ".



Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1229 AS AMENDED

Moved by:    Gibson
Second by:    Noem
Action:    Prevailed by roll call vote. (15-0-0-0)

Voting Yes:    Cutler, Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lange, Lederman, Noem, Russell, Solum, Thompson, Olson (Ryan)

MOTION:     AMEND TITLE OF HB 1229

1229ftf

     On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "increase the gross receipts tax imposed on visitor-related businesses and to revise certain provisions concerning the tourism promotion fund.".

     On page 1, delete lines 2 and 3.


Moved by:    Lederman
Second by:    Gibson
Action:    Prevailed by voice vote.

        
HB 1266: impose a tax on the gross receipts of advertising services, to create the education advertising gross receipts tax fund, and to deposit the advertising gross receipts tax revenue in the education advertising gross receipts tax fund.

Presented by:    Representative Thomas Deadrick
Proponents:    Senator Mike Vehle
        Dianna Miller, Large School Group
        Jim Hutmacher, Coalition of Schools, Mid Size Schools
Opponents:    David Bordewyk, Newspaper Association
        Steve Willard, Broadcasters Association
        Myron Rau, Auto Dealers Association
        Shawn Lyons, Retailers Association
        Bob Faehn, Self, Watertown

MOTION:     AMEND HB 1266

1266fa

     On page 1 of the printed bill, delete line 12, and insert:

"

             (5)    "Regional seller" or "regional advertiser," any seller or advertiser that sells from locations in more than one state;

             (6)    "Secretary," the secretary of the Department of Revenue and Regulation;

             (7)    "Seller" or "advertiser," any person whose identity, business, service, or product is the primary subject of the advertising message.".

     On page 3, line 2, after "." insert "The gross receipts for advertising services are not subject to the tax imposed by this Act if the advertising services are provided to any regional seller or advertiser that does not have a principal place of business in this state.".


Moved by:    Noem
Second by:    Juhnke
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1266 TO THE 41ST LEGISLATIVE DAY

Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Prevailed by roll call vote. (9-5-1-0)

Voting Yes:    Feickert, Gibson, Hunhoff (Bernie), Kirschman, Noem, Russell, Solum, Thompson, Olson (Ryan)

Voting No:    Greenfield, Juhnke, Kirkeby, Lange, Lederman

Excused:    Cutler

        
HB 1294: repeal the methodology that assesses agricultural land based on its agricultural income value, to dissolve the implementation and oversight advisory task force, and to revise certain provisions concerning the assessment of real property.

Presented by:    Representative David Lust
Proponents:    Senator Al Novstrup (Handouts: #1,2,3)
        Mary Worlie, Association of Assessing Officers, Incorporation (Handouts: #4)
        Debbie Kahl, Association of Assessing Officers, Incorporation
Opponents:    Michael Kenyon, Department of Revenue and Regulation (Handouts: #5)
        Mary Duvall, Farm Bureau
        Mathew McCaulley, Corn Growers Association
        Walt Bones, Self, Parker
        Jodie Hickman, Cattlemen's Association

MOTION:     DEFER HB 1294 TO THE 41ST LEGISLATIVE DAY

Moved by:    Noem
Second by:    Juhnke
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS HB 1294

Moved by:    Cutler
Second by:    Feickert
Action:    Failed by roll call vote. (4-11-0-0)

Voting Yes:    Cutler, Feickert, Kirkeby, Thompson

Voting No:    Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirschman, Lange, Lederman, Noem, Russell, Solum, Olson (Ryan)

MOTION:     DEFER HB 1294 TO THE 41ST LEGISLATIVE DAY

Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by roll call vote. (11-4-0-0)

Voting Yes:    Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirschman, Lange, Lederman, Noem, Russell, Solum, Olson (Ryan)

Voting No:    Cutler, Feickert, Kirkeby, Thompson

MOTION:     ADJOURN

Moved by:    Gibson
Second by:    Noem
Action:    Prevailed by voice vote.

Linda Daugaard

____________________________

Committee Secretary
Ryan P. Olson, Chair