74th Legislative Session -- 1999

Committee: Senate Taxation

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Albers
P      Brown (Arnold)
P      Daugaard
P      Flowers
P      Moore
P      Olson
P      Valandra
P      Brosz, Vice-Chair
P      Paisley, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Paisley

MOTION:      TO APPROVE THE MINUTES OF January 20, 1999

Moved by:      Senator Brosz
Second by:      Senator Olson
Action:      Prevailed by voice vote.

          SB 84:   provide an index factor to adjust the value of certain motor vehicles that are exempt from motor vehicle excise tax.

Proponents:      Senator Staggers
         
Opponents:      Deb Hillmer, Department of Revenue

MOTION:      AMEND SB 84

f-84

     On page 3 , line 20 of the printed bill , delete " before the year " .

     On page 3 , line 20 , delete " of adjustment " and insert " in which the taxes are payable " .

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Moved by:      Senator Flowers
Second by:      Senator Daugaard
Action:      Prevailed by voice vote.

MOTION:      DEFER SB 84 UNTIL Friday, January 29, 1999

Moved by:      Senator Flowers
Second by:      Senator Olson
Action:      Prevailed by voice vote.

          SB 110:   revise certain provisions concerning the electronic filing of tax returns and tax payments.

Proponents:      Senator Paisley
          Scott Peterson, Department of Revenue
          Joe Blaseg, Department of Revenue
          Gary Viken, Secretary, Department of Revenue

Opponents:      Jerry Wheeler, SD Retailers Association

MOTION:      DO PASS SB 110

Moved by:      Senator Daugaard
Second by:      Senator Brown (Arnold)
Action:      Prevailed by roll call vote.   (6-3-0-0)

Voting yes:      Brown (Arnold), Daugaard, Olson, Valandra, Brosz, Paisley

Voting no:      Albers, Flowers, Moore

          SB 111:   establish certain provisions regarding the taxation of the gross receipts of a professional employer organization.

Proponents:      Senator Paisley
          Scott Heideprem, Hullinger Group Inc.
          Les Hullinger, Hullinger Group Inc
          David Owen, SD Chamber of Commerce

MOTION:      AMEND SB 111

f-111a

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

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"
     Section 1. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:
    
    For the purposes of chapter 10-45, gross receipts of a professional employer organization includes only those amounts received as administrative fees from a client company, whether on a fee-for-service basis or as a percentage of total receipts from the client company. The gross receipts do not include any other amount paid by the client company to the professional employer organization for the benefit of any employee, including wages, salaries, payroll taxes, payroll deductions, workers compensation costs, insurance premiums, welfare benefits, and retirement benefits.

     Section 2. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of section 1 of this Act, the term, professional employer organization, means a firm which:

             (1)    Creates a co-employer relationship with the employees of a client company by assuming responsibility for payroll, benefits, and other human resources functions;

             (2)    Covers at least seventy-five percent of the client company's full-time or full-time equivalent employees; and

             (3)    Maintains separate books and records of account for each client company.

     Section 3. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

     The provisions of this Act do not apply to the providing of temporary help services or to any other arrangement whereby a firm temporarily assigns employees of the firm to support or supplement a client company's regular work force in special situations such as employee absences, temporary skill shortages, seasonal workloads and special assignments, or projects. "

Moved by:      Senator Olson
Second by:      Senator Brown (Arnold)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 111 AS AMENDED

Moved by:      Senator Olson
Second by:      Senator Brown (Arnold)
Action:      Prevailed by roll call vote.   (9-0-0-0)

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Voting yes:      Albers, Brown (Arnold), Daugaard, Flowers, Moore, Olson, Valandra, Brosz, Paisley

          SB 68:   increase the fees the sheriff is allowed for collecting taxes.

Proponents:      Senator Olson
          Ken Leidholt, Sheriff, Hughes County

MOTION:      DO PASS SB 68

Moved by:      Senator Olson
Second by:      Senator Brosz
Action:      Prevailed by roll call vote.   (9-0-0-0)

Voting yes:      Albers, Brown (Arnold), Daugaard, Flowers, Moore, Olson, Valandra, Brosz, Paisley

MOTION:      ADJOURN

Moved by:      Senator Moore
Second by:      Senator Olson
Action:      Prevailed by voice vote.

Cynthia L. Mercer

Committee Secretary