84th Legislative Session _ 2009

Committee: Senate Taxation
Monday, February 23, 2009

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Adelstein
P    Fryslie, Vice-Chair
P    Howie
P    Jerstad
P    Maher
P    Merchant
P    Nelson
P    Peterson
P    Hansen (Tom), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair, Senator Tom Hansen.

MOTION:     TO APPROVE THE MINUTES OF FRIDAY, FEBRUARY 20, 2009

Moved by:    Nelson
Second by:    Fryslie
Action:    Prevailed by voice vote.

        
HB 1215: transfer funds from the tax relief fund to the general fund and to revise certain provisions concerning the effective date of the collection allowance.

Presented by:    Representative Ryan Olson (Handout #1)

Shawn Lyons, SD Retailers and Senator Tom Dempster answered some questions

MOTION:     AMEND HB 1215

1215ra

     On page 1, after line 11 of the House engrossed bill, insert:

"
     Section 3. That § 10-45C-14 be amended to read as follows:

     10-45C-14.   There is hereby created in the state treasury the tax relief fund. The revenue collected pursuant to § 10-45C-15 shall be deposited in the tax relief fund for the purpose of reducing the rate of taxation or reducing property taxes. The fund shall be invested as provided by law, and the interest earned shall be credited to the fund. The Legislature may not appropriate any money from the tax relief fund until the second fiscal year after Congress approves legislation giving states the authority to require retailers to collect South Dakota's sales and use tax. However, until that time, all moneys in the tax relief fund shall be transferred to the state general fund before the final day of each yearly quarter. ".



Moved by:    Adelstein
Second by:    Fryslie
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1215 AS AMENDED

Moved by:    Nelson
Second by:    Fryslie
Action:    Prevailed by roll call vote. (7-1-1-0)

Voting Yes:    Adelstein, Fryslie, Howie, Maher, Merchant, Nelson, Hansen (Tom)

Voting No:    Peterson

Excused:    Jerstad

        
HB 1231: increase the exemption on the proceeds of the sale of certain homesteads.

Presented by:    Representative Mike Verchio (Handout #2)

David Wiest, Department of Revenue and Regulation, answered some questions

MOTION:     DO PASS HB 1231

Moved by:    Howie
Second by:    Nelson
Action:    Prevailed by roll call vote. (8-1-0-0)

Voting Yes:    Adelstein, Fryslie, Howie, Jerstad, Maher, Merchant, Nelson, Peterson

Voting No:    Hansen (Tom)

MOTION:     REMOVE SB 199 FROM THE TABLE FOR IMMEDIATE CONSIDERATION

Moved by:    Merchant
Second by:    Jerstad
Action:    Prevailed by roll call vote. (6-3-0-0)

Voting Yes:    Adelstein, Jerstad, Maher, Merchant, Nelson, Peterson

Voting No:    Fryslie, Howie, Hansen (Tom)

        
SB 199: repeal the sales and use tax on certain food items, to increase the rate of taxation for the sales and use tax on certain goods and services, to provide for the distribution of certain revenue to municipalities, and to repeal the sales tax on food refund program.

Presented by:    Senator Pam Merchant
Opponents:    Jane Page, Department of Revenue and Regulation
        David Wiest, Department of Revenue and Regulation

MOTION:     AMEND SB 199

199ff

     On page 14 of the printed bill, delete lines 7 to 21, inclusive, and insert:

"      Section 17. Any retailer required to file a return and remit the tax imposed by chapter 10-45 who sells any item defined as food pursuant to subdivision 10-45-1(5) shall report the gross receipts from the sale of food when the retailer files its return with the department. Within ninety days after the return is filed, the department shall distribute an amount of money to each municipality that imposes a tax pursuant to chapter 10-52. The amount of money distributed to each municipality shall be equal to the gross receipts from the sale of food in the municipality times the rate of taxation imposed by the municipality pursuant to chapter 10-52.

     Section 18. Any retailer required to file a return and remit the tax imposed by chapter 10-46 who uses any item defined as food pursuant to subdivision 10-46-1(5) shall report the gross receipts from the use of food when the retailer files its return with the department. Within ninety days after the return is filed, the department shall distribute an amount of money to each municipality that imposes a tax pursuant to chapter 10-52. The amount of money distributed to each municipality shall be equal to the gross receipts from the use of food in the municipality times the rate of taxation imposed by the municipality pursuant to chapter 10-52.

     Section 19. Within ninety days after the return is filed pursuant to sections 17 and 18 of this Act, the department shall distribute an amount of money to each Indian tribe that has entered into a tax collection agreement that covers sales and use tax. The amount of money distributed to each Indian tribe shall be equal to the gross receipts from the sales and use of food in the area defined by the tax collection agreement times the percentage of such taxes remitted to the tribe times four percent.".



Moved by:    Jerstad
Second by:    Nelson
Action:    Prevailed by voice vote.

MOTION:     DEFER SB 199 TO THE 41ST LEGISLATIVE DAY

Moved by:    Fryslie
Second by:    Howie
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS SB 199 AS AMENDED

Moved by:    Merchant
Second by:    Jerstad
Action:    Prevailed by roll call vote. (5-4-0-0)

Voting Yes:    Adelstein, Jerstad, Merchant, Nelson, Peterson

Voting No:    Fryslie, Howie, Maher, Hansen (Tom)

MOTION:     AMEND TITLE OF SB 199

199ftc

     On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "exempt certain food items from sales and use tax, to".

     On page 1, line 3, after "municipalities" insert "and Indian tribes".



Moved by:    Merchant
Second by:    Nelson
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Merchant
Second by:    Howie
Action:    Prevailed by voice vote.

Lois Henry

____________________________

Committee Secretary
Tom Hansen, Chair