Committee: House Taxation
MOTION:
TO APPROVE THE MINUTES OF THE PREVIOUS MEETING.
Moved by:
Representative Jaspers
Second by:
Representative McNenny
Action:
Prevailed by voice vote.
HB 1190:
allow certain interstate shipments of wine.
Proponents:
Dave Gerdes, Self
Jeff Fox, Wine Institute, Sioux Falls
Representative Richard Brown
Opponents:
Bill Dougherty, SoDak Distributing
Jeremiah Murphy, South Dakota Distributors, Sioux Falls
Tim Dougherty, Retail Liquor Dealers Assn.
Jerry Wheeler, SD Retailers Assn.
Presented by:
Rep. Wetz
"
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; school buses (group no. 415); trucking and courier services,
except air (group no. 421) except collection and disposal of solid waste;
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 and locksmiths and locksmith shops; 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
§
10-45-72
be amended to read as follows:
10-45-72.
The tax imposed by
§
§
10-45-70 to 10-45-81, inclusive,
§
10-45-71
does not apply
to any transportation service which the state is prohibited from taxing by federal law or the United
States Constitution.
Section 6. 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 7. That
§
10-45-74
be repealed.
10-45-74.
Transportation services may only be sold for resale under the following circumstances:
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 10. That § 10-45-77 be repealed.
| Length of Trip | Number of Cargo Vessels | Imputed Gross | |
| Zone | (in miles) | per Trip Transportation | Receipts from |
| 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 |
| B | More than 50, but less than 100 | 2 or more | $165.00 |
| C | 100 or more, but less than 150 | 1 | $176.00 |
| C | 100 or more, but less than 150 | 2 or more | $242.00 |
| D | 150 or more, but less than 200 | 1 | $224.00 |
| D | 150 or more, but less than 200 | 2 or more | $308.00 |
| E | 200 or more | 1 | $280.00 |
| E | 200 or more | 2 or more | $385.00 |
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 12. 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 13. 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 14. That § 10-46-57 be repealed.
Section 15. That
§
10-46-59
be amended to read as follows:
10-46-59.
The tax imposed by
§
§
10-46-57 to 10-46-61, inclusive,
§
10-46-58
does not apply
to any transportation service which the state is prohibited from taxing by federal law or the United
States Constitution.
Section 16. That
§
10-46-60
be repealed.
10-46-60.
The transportation of agricultural products by the agricultural producer thereof is
exempt from the tax imposed by
§
§
10-46-57 to 10-46-61, 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
§
§
10-46-57 to 10-46-61, inclusive.
Section 17. 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 5. That
§
10-6-33.6
be amended to read as follows:
10-6-33.6.
If the
median value
cash rent
per acre in an identifiable region within a county
deviates by more than ten percent from the county average, the county director of equalization may
establish a separate
market
value per acre for the land defined by the director of equalization within
that region.
"
"
ratio as provided for in
§
10-11-55 and the most recent
assessment to full agricultural land value
ratio
agricultural income value
as provided for in
§
10-11-57
10-6-33.15
in the district are equal to
eighty-five percent of market
or income
"
.
"
Section 2. That
§
32-5-6.3
be amended to read as follows:
32-5-6.3.
License fees on a noncommercial motor vehicle which is not an automobile, pickup
truck, or van
as provided by
licensed pursuant to
§
32-5-6 shall be determined by the gross weight
of the motor vehicle as defined by subdivision 32-9-1(6), and based on the following:
Moved by:
Representative Munson (Donald)
Second by:
Representative Waltman
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1175 AS AMENDED
Moved by:
Representative Waltman
Second by:
Representative Nachtigal
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION WITHOUT RECOMMENDATION HB 1175 AS
AMENDED
Moved by:
Representative McNenny
Second by:
Representative Munson (Donald)
Action:
Prevailed by roll call vote.
(11-2-0-0)
Voting yes:
Apa, Diedrich (Larry), Garnos, Hanson, Jaspers, McIntyre, McNenny, Munson
(Donald), Nachtigal, Smidt, Koskan
Voting no:
Napoli, Waltman
HB 1232:
provide for a retroactive application of the definition of telephone
company operating property.
Proponents:
Dick Howard, South Dakota Association of County Commissioners (Handout N)
Presented by:
Rep. Waltman
MOTION:
AMEND HB 1232
"
Section 1. The Legislature finds:
definition of operating property pursuant to
§
10-33-10 assessed for taxation by the
Department of Revenue;
Section 4. The collection of any taxes from each wireless and cellular telephone company by
the counties for the years 1992, 1993, 1994, 1995, and 1996 as a result of having operating property
assessed by the Department of Revenue, prior to the passage of this Act is hereby validated and
ratified.
Section 6. Whereas, this Act is necessary for the support of the state government and its existing
public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and
effect from and after its passage and approval.
"
Mary Ann McCowan