74th Legislative Session -- 1999

Committee: House State Affairs

Wednesday, February 10, 1999

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Brown (Richard)
P      Eccarius
P      Fischer-Clemens
P      Haley
P      Hunt
P      Jaspers
P      Koetzle
P      Koskan
P      Lucas
P      Roe
P      Smidt
P      McNenny, Vice-Chair
P      Cutler, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Steve Cutler.


MOTION:      TO APPROVE THE MINUTES OF MONDAY, FEBRUARY 8, 7:00 PM.

Moved by:      Representative Koskan
Second by:      Representative Fischer-Clemens
Action:      Prevailed by voice vote.

          HB 1299:   revise certain provisions regarding the practices of physician assistants, certified registered nurse anesthetists, nurse practitioners, and nurse midwives.

Proponents:      Diana VanderWoude, Executive Secretary, SD Board of Nursing
          Roberta Olson, lobbyist, SD Nurses Association
          Brenda Anderson, Nurse Practitioners of SD
          Steve Williams, SD Academy of Physicians, Sturgis
        Dave Hewett, lobbyist, SD Association of Healthcare Organizations
        Mike Smith, self, SD Association of Nurse Anesthesists
        Bob Johnson, lobbyist, American Medical Association


        Ken Korn, Family Nurse Practitioners, Vermillion
        Lis Hanson, self, Certified Nurse Midwife, Sioux Falls
Presented by:      Doneen Hollingsworth, Secretary, Department of Health (handout 1)

MOTION:      DO PASS HB 1299

Moved by:      Representative Fischer-Clemens
Second by:      Representative Roe
Action:      Prevailed by roll call vote.   (12-0-1-0)

Voting yes:      Brown (Richard), Eccarius, Fischer-Clemens, Haley, Hunt, Jaspers, Koetzle, Koskan, Lucas, Roe, Smidt, Cutler

Excused:      McNenny

MOTION:      PLACE HB 1299 ON CONSENT

Moved by:      Representative Fischer-Clemens
Second by:      None
Action:      Died for a lack of a second

          HB 1110:   restrict the locations where video lottery machines may be placed, to require a corporate income tax to be imposed, to create an impact fund, and to provide property tax relief.

Proponents:      Tom Grey, lobbyist, NCAGE
Opponents:      Nancy Smiegowski, Gateway, N. Sioux City
Presented by:      Sub-committee members: Representatives Brown, Lucas and Hunt

MOTION:      AMEND HB 1110

o-1110

     On page 5 , delete lines 23 to 25 of the printed bill , inclusive , and insert:

"     Section 6. 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 and one-half 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 7. That § 10-45-3 be amended to read as follows:

     10-45-3.   There is hereby imposed a tax of three and one-half 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 8. That § 10-45-5 be amended to read as follows:

     10-45-5.   There is imposed a tax at the rate of three and one-half 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 and one-half 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 9. That § 10-45-5.3 be amended to read as follows:

     10-45-5.3.   There is imposed, at the rate of three and one-half 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 10. That § 10-45-6 be amended to read as follows:

     10-45-6.   There is hereby imposed a tax of four and one-half 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 11. 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 and one-half 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 12. That § 10-45-8 be amended to read as follows:

     10-45-8.   There is imposed a tax of four and one-half 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.

     Section 13. That § 10-45-70 be amended to read as follows:

     10-45-70.   There is imposed a tax of four and one-half 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 14. That § 10-45-71 be amended to read as follows:

     10-45-71.   There is imposed a tax of four and one-half 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 15. 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 and one-half 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 employer are not taxable.

     Section 16. 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 and one-half percent of the rental payments upon the property.


     Section 17. That § 10-46-57 be amended to read as follows:

     10-46-57.   There is imposed a tax of four and one-half 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 18. That § 10-46-58 be amended to read as follows:

     10-46-58.   There is imposed a tax of four and one-half 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 19. The effective date of this Act is July 1, 2001. "


     Delete pages 6 and 7.


Moved by:      Representative Brown
Second by:      Representative Hunt
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1110 AS AMENDED

Moved by:      Representative Hunt
Second by:      Representative Brown (Richard)
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Brown (Richard), Hunt, Jaspers, Koskan, Lucas, Smidt, Cutler

Voting no:      Eccarius, Fischer-Clemens, Haley, Koetzle, Roe

Excused:      McNenny

MOTION:      TO AMEND TITLE OF HB 1110

o-1110t

     On page 1 , line 2 of the printed bill, delete everything after "placed" and insert " and to increase sales and use taxes. " .

     On page 1 , delete line 3 .


Moved by:      Representative Lucas
Second by:      Representative Hunt
Action:      Prevailed by voice vote.

          HB 1200:   increase sales and use taxes, repeal the video lottery, and dedicate any additional revenue to reducing property taxes or increasing the per student allocation.

MOTION:      DO PASS HB 1200

Moved by:      Representative Brown (Richard)
Second by:      Representative Hunt
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Brown (Richard), Eccarius, Hunt, Koskan, Lucas, Roe, Cutler

Voting no:      Fischer-Clemens, Haley, Jaspers, Koetzle, Smidt

Excused:      McNenny

          HB 1149:   increase the sales and use tax, to reduce the sales and use tax over a period of time, and to repeal the video lottery.

The Chair deferred HB 1149 until Wednesday, February 17.

          HB 1152:   establish a school construction fund, to provide for loans from the fund, to increase the state portion of video lottery machine income, and to dedicate the additional revenue to the school construction fund.

The Chair deferred HB 1152 until Wednesday, February 17.

          HB 1201:   increase the state portion of video lottery machine income, to dedicate the additional revenue, and to provide for the repeal of video lottery.

The Chair deferred HB 1201 until Wednesday, February 17.

          HB 1237:   increase the sales and use tax and to repeal the video lottery and to refer the Act to a vote of the electors of this state at the next general election.

The Chair deferred HB 1237 until Wednesday, February 17.

          HB 1284:   repeal capital punishment.

Proponents:      Rev. Howard Carroll, Catholic Church in SD, Sioux Falls
          Mike and Kathie Clarey, self, Sioux Falls
          Charmaine White Face, self, Rapid City (handout 2)
          Jeremiah Murphy, self, Sioux Falls
        Richard Gregerson, self, Sioux Falls
        Varick Cutler, self, Rapid City
        Bob Frieberg, self, Beresford
Opponents:      Ed and Peggy Schaeffer, self, Black Hawk
Presented by:      Representative Ron Volesky, prime sponsor

MOTION:      DO PASS HB 1284

Moved by:      Representative Haley
Second by:      Representative Lucas
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DEFER HB 1284 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Koskan
Second by:      Representative Eccarius
Action:      Prevailed by roll call vote.   (7-6-0-0)

Voting yes:      Eccarius, Hunt, Jaspers, Koskan, Roe, Smidt, McNenny

Voting no:      Brown (Richard), Fischer-Clemens, Haley, Koetzle, Lucas, Cutler

MOTION:      ADJOURN

Moved by:      Representative Hunt
Second by:      Representative McNenny
Action:      Prevailed by voice vote.



Clara Shelbourn

_________________________________

Committee Secretary
Steve Cutler, Chair


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