74th Legislative Session -- 1999

Committee: House Taxation

Tuesday, February 16, 1999

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Apa
P      Diedrich (Larry)
P      Garnos
P      Hanson
P      Jaspers
P      McIntyre
P      McNenny
P      Munson (Donald)
P      Nachtigal
P      Napoli
P      Waltman
P      Smidt, Vice-Chair
P      Koskan, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Koskan


MOTION:      TO APPROVE THE MINUTES OF February 11, 1999

Moved by:      Representative Diedrich (Larry)
Second by:      Representative Smidt
Action:      Prevailed by voice vote.

          HB 1275:   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.

Opponents:      Scott Peterson, Dept. Of Revenue
          Yvonne Vik, SD Municipal League
Presented by:      Rep. Munson (Handout E)

MOTION:      DEFER HB 1275 UNTIL THE 41ST LEGISLATIVE DAY



Moved by:      Representative Diedrich (Larry)
Second by:      Representative Smidt
Action:      Prevailed by roll call vote.   (7-6-0-0)

Voting yes:      Diedrich (Larry), Garnos, Hanson, Jaspers, Nachtigal, Waltman, Smidt

Voting no:      Apa, McIntyre, McNenny, Munson (Donald), Napoli, Koskan

          HB 1220:   repeal the wheel tax and to delay the effective date.

Opponents:      Dick Howard, SD Association of County Commissioners (Handout F)
Presented by:      Rep. Peterson

MOTION:      DEFER HB 1220 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Napoli
Second by:      Representative Apa
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION AMEND HB 1220

f-1220

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

"
     Section  1.  That chapter 32-5A be amended by adding thereto a NEW SECTION to read as follows:

     If a county does not impose a wheel tax of at least two dollars per vehicle wheel pursuant to chapter 32-5A by January 1, 2000, the secretary of revenue shall decrease the portion of local government highway and bridge fund to be received by such county by twenty percent. The money not provided to such county pursuant to this section shall be reapportioned pursuant to §  32-11-35 to the other counties that have imposed a wheel tax of at least two dollars per vehicle wheel. "



Moved by:      Representative Munson (Donald)
Second by:      Representative Smidt
Action:      Failed by roll call vote.   (3-9-1-0)

Voting yes:      McIntyre, Munson (Donald), Smidt

Voting no:      Apa, Diedrich (Larry), Hanson, Jaspers, McNenny, Nachtigal, Napoli, Waltman, Koskan

Excused:      Garnos

MOTION:      SUBSTITUTE MOTION DO PASS HB 1220

Moved by:      Representative Waltman
Second by:      Representative Jaspers
Action:      Failed by roll call vote.   (4-8-1-0)

Voting yes:      Hanson, Jaspers, Waltman, Koskan

Voting no:      Apa, Diedrich (Larry), McIntyre, McNenny, Munson (Donald), Nachtigal, Napoli, Smidt

Excused:      Garnos

ORIGINAL MOTION:      DEFER HB 1220 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Napoli
Second by:      Representative Apa
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Apa, Diedrich (Larry), McNenny, Munson (Donald), Nachtigal, Napoli, Smidt

Voting no:      Hanson, Jaspers, McIntyre, Waltman, Koskan

Excused:      Garnos

          HB 1241:   revise certain provisions regarding a wheel tax on motor vehicles.

Presented by:      Rep. Kooistra

MOTION:      DEFER HB 1241 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Apa
Second by:      Representative Jaspers
Action:      Failed by roll call vote.   (6-6-1-0)

Voting yes:      Apa, Hanson, Jaspers, McNenny, Napoli, Koskan

Voting no:      Diedrich (Larry), McIntyre, Munson (Donald), Nachtigal, Waltman, Smidt

Excused:      Garnos

MOTION:      TO TABLE HB 1241

Moved by:      Representative Waltman
Second by:      Representative Apa
Action:      Prevailed by roll call vote.   (8-4-1-0)

Voting yes:      Apa, Hanson, Jaspers, McNenny, Nachtigal, Napoli, Waltman, Koskan

Voting no:      Diedrich (Larry), McIntyre, Munson (Donald), Smidt

Excused:      Garnos

          HB 1242:   revise certain procedures regarding the reduction of license fees for older vehicles.

Proponents:      Dick Howard, SD Association of County Commissioners
Presented by:      Rep. Kooistra

MOTION:      DO PASS HB 1242

Moved by:      Representative Apa
Second by:      None
Action:      Died for a lack of a second

MOTION:      DEFER HB 1242 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Waltman
Second by:      Representative Diedrich (Larry)
Action:      Prevailed by roll call vote.   (10-2-1-0)

Voting yes:      Diedrich (Larry), Hanson, Jaspers, McIntyre, McNenny, Nachtigal, Napoli, Waltman, Smidt, Koskan

Voting no:      Apa, Munson (Donald)

Excused:      Garnos

          HB 1138:   account for how taxes are paid by certain manufactured homes for certain school purposes, to establish how the Department of Revenue shall adjust the computation for local effort, and to classify certain manufactured homes as real property for property tax purposes.

Proponents:      Dianna Miller, ESD+5
          Jerry Kleinsasser, Stanley County Schools
          John Favre, Avon School Distrrict
          Bob Stevens, SDEA
          Senator Rounds
          Christie Johnson,School Administrators of SD
Opponents:      Dave Knutson, Office of the Governor
Presented by:      Rep. Larry Diedrich

MOTION:      AMEND HB 1138

f-1138g

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

"      Section 1. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     The provisions of this section apply to any manufactured home defined as real property pursuant to §  10-4-2.4 before November 1, 2002. The per student allocation provided by subdivision 13-13-10.1(4) shall be increased each school fiscal year by a factor which accounts for the total statewide other revenues lost by school districts resulting from manufactured homes being valued for the purposes of ad valorem taxation pursuant to §  10-4-2.4. The tax levies specified in subdivision 13-13-10.1(6) shall be adjusted so no benefit is conveyed to the state or the school districts as a whole and notwithstanding the provisions concerning the relative proportion of local effort and state aid to education required by § §  13-13-71 and 13-13-72.

     Section 2. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1994 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 3. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1994 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 4. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1990 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 5. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1990 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization

of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 6. The effective date of sections 4 and 5 of this Act is July 1, 2000.

     Section 7. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1985 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 8. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1985 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 9. The effective date of sections 7 and 8 of this Act is July 1, 2001.

     Section 10. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1977 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 11. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1977 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 12. The effective date of sections 10 and 11 of this Act is July 1, 2002. "



Moved by:      Representative Jaspers
Second by:      Representative Napoli
Action:      Failed by roll call vote.   (2-11-0-0)

Voting yes:      Jaspers, Koskan

Voting no:      Apa, Diedrich (Larry), Garnos, Hanson, McIntyre, McNenny, Munson (Donald), Nachtigal, Napoli, Waltman, Smidt

MOTION:      AMEND HB 1138

f-1138d

     On page 1 , after line 13 of the printed bill , insert:

"      Section 2. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1994 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 3. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1994 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 4. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1990 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 5. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1990 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 6. The effective date of sections 4 and 5 of this Act is July 1, 2000.

     Section 7. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1985 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 8. That § 10-4-2.6 be amended to read as follows:


     10-4-2.6.   If a manufactured home with a model year of 1997 1985 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 9. The effective date of sections 7 and 8 of this Act is July 1, 2001.

     Section 10. That § 10-4-2.4 be amended to read as follows:

     10-4-2.4.   Real property, for the purposes of ad valorem taxation, includes manufactured homes as defined in subdivision 32-3-1(6) with a model year of 1997 1977 or newer. This section does not apply to any manufactured home in the inventory of any dealer as defined in subdivision 32-7A-1(1).

     Section 11. That § 10-4-2.6 be amended to read as follows:

     10-4-2.6.   If a manufactured home with a model year of 1997 1977 or newer, is sold by a licensed manufactured home dealer, the dealer shall complete the manufactured home listing form, as prescribed by the secretary of revenue, and send the completed form to the director of equalization of the county in which the manufactured home was delivered. The form shall be sent within thirty days after the delivery of the manufactured home.

     Section 12. The effective date of sections 10 and 11 of this Act is July 1, 2002. "



Moved by:      Representative Diedrich (Larry)
Second by:      Representative Apa
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1138 AS AMENDED

Moved by:      Representative Diedrich (Larry)
Second by:      Representative Smidt
Action:      Prevailed by roll call vote.   (11-2-0-0)

Voting yes:      Apa, Diedrich (Larry), Garnos, Hanson, McIntyre, McNenny, Munson (Donald), Nachtigal, Napoli, Waltman, Smidt

Voting no:      Jaspers, Koskan

MOTION:      TO AMEND TITLE OF HB 1138

f-1138tb

     On page 1 , line 2 of the printed bill , delete " and " and insert " , " .

     On page 1 , line 3 , after " effort " insert " , and to classify certain manufactured homes as real property for property tax purposes " .


Moved by:      Representative Diedrich (Larry)
Second by:      Representative Apa
Action:      Prevailed by voice vote.

          HB 1175:   increase and revise license fees for certain noncommercial vehicles and to revise the distribution of such fees.

Proponents:      Gail Brock, SD Association of Towns and Townships
          Dick Howard, SD Association of County Commissioners
          Marie Ingalls, SD Farm Bureau
Presented by:      Rep. Kazmerzak (Handouts G and H)

MOTION:      DEFER HB 1175 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Napoli
Second by:      Representative McNenny
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1175

Moved by:      Representative Jaspers
Second by:      Representative Waltman
Action:      Prevailed by roll call vote.   (9-4-0-0)

Voting yes:      Diedrich (Larry), Garnos, Hanson, Jaspers, McIntyre, Nachtigal, Napoli, Waltman, Smidt

Voting no:      Apa, McNenny, Munson (Donald), Koskan

MOTION:      ADJOURN

Moved by:      Representative Diedrich (Larry)
Second by:      Representative Smidt
Action:      Prevailed by voice vote.



Mary Ann McCowan

_________________________________

Committee Secretary
John Koskan, Chair


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