84th Legislative Session _ 2009

Committee: House Taxation
Thursday, March 05, 2009

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Cutler
P    Feickert
P    Gibson
P    Greenfield
P    Hunhoff (Bernie)
P    Juhnke
P    Kirkeby
P    Kirschman
P    Lange
P    Lederman
P    Noem, Vice-Chair
P    Russell
P    Solum
P    Thompson
P    Olson (Ryan), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Ryan Olson, Chair.

MOTION:     TO APPROVE THE MINUTES OF TUESDAY, MARCH 3, 2009.

Moved by:    Juhnke
Second by:    Gibson
Action:    Prevailed by voice vote.

        
SB 3: revise certain provisions concerning the assessment of agricultural land.

Presented by:    Representative Kristi Noem
        Senator Dave Knudson


        Representative H. Paul Dennert
Proponents:    Jim Lintz, Self, Hermosa
        Michael Kenyon, Department of Revenue and Regulation (Handouts: #1)
        Walt Bones, Self, Parker
        Wayne Lueders, Associated School Boards of South Dakota
        Kirk Chaffee, Self, Whitewood
        Wayne Soren, Self, Lake Preston
        David Owen, Chamber of Commerce & Industry
Opponents:    Senator Stanford Adelstein
        Terry Leibel, Self, Pierre

MOTION:     DO PASS SB 3

Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by roll call vote. (14-0-1-0)

Voting Yes:    Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lange, Lederman, Noem, Russell, Solum, Thompson, Olson (Ryan)

Excused:    Cutler

        
SB 4: revise certain tax levy limitations and property tax levies for school districts.

Presented by:    Representative Kristi Noem
Proponents:    Wayne Lueders, Associated School Boards of South Dakota
        Michael Kenyon, Department of Revenue and Regulation

MOTION:     AMEND SB 4

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

     "
     Section 1. That § 10-6-33.35 be amended to read as follows:

     10-6-33.35.   There is hereby established the Agricultural Land Assessment Implementation and Oversight Advisory Task Force. The task force shall consist of the following fourteen members:

             (1)      The speaker of the House of Representatives shall appoint four members of the House of Representatives, no more than two of whom may be from one political party;

             (2)      The speaker of the House of Representatives shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background;

             (3)      The president pro tempore of the Senate shall appoint four members of the Senate, no more than two of whom may be from one political party; and

             (4)      The president pro tempore of the Senate shall appoint three members of the general public, at least one of the members shall have an agricultural background and at least one of the members shall have a business background.

     The initial appointments shall be made no later than July 1, 2008, and shall serve until January 12, 2009. The speaker of the House of Representatives and president pro tempore of the Senate before the close of each regular session of the Legislature held in odd-numbered years shall appoint members to the task force for a term of two years. If there is a vacancy on the task force, the vacancy shall be filled in the same manner as the original appointment.

     The task force shall advise the department regarding the rules promulgated by the department to administer the provisions concerning the assessment and taxation of agricultural lands and shall review the implementation of the provisions of law concerning the assessment and taxation of agricultural land. The task force shall report to the Senate and House of Representatives and may submit a copy of its report to the Governor. The task force may present draft legislation and policy recommendations to the Legislative Research Council Executive Board.

     The task force shall make recommendations in the following areas:

             (1)      The proper percentage of annual earning capacity to be used to determine the agricultural income value pursuant to § 10-6-33.28; and

             (2)      The proper capitalization rate in order to have total taxable valuation for the taxes payable in 2011 from agricultural property be not more than total taxable valuation for the taxes payable in 2010 from agricultural property plus the estimated growth in agricultural property value in 2010 ;

             (3)    The changes, if any, that must be made to § §  13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of additional taxes that may be generated on agricultural land by a school district pursuant to the provisions of § §  13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 will not provide a substantial property tax revenue increase for the school district pursuant to the implementation of the productivity system pursuant to § §  10-6- 33.28 to 10-6-33.33, inclusive; and

             (4)    The changes, if any, that must be made to § §  13-10-6, 13-16-7, 13-37-16, and 13-37-35.1 to ensure that the total amount of property taxes that may be lost on agricultural land by a school district pursuant to the provisions of § §  13-10-6, 13-16-7, 13-37-16, and 13-37- 35.1 will not provide a substantial property tax revenue decrease for the school district pursuant to the implementation of the productivity system pursuant to § §  10-6-33.28 to 10-6-33.33, inclusive . "


Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 4 AS AMENDED

Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lange, Lederman, Noem, Solum, Thompson, Olson (Ryan)

Excused:    Cutler, Russell

MOTION:     AMEND TITLE OF SB 4

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     On page 1, line 1, of the Senate engrossed bill, delete everything after "Act to" and insert "provide for additional responsibilities to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force.".

     On page 1, delete line 2.


Moved by:    Noem
Second by:    Juhnke
Action:    Prevailed by voice vote.

        
SB 149: revise certain provisions regarding the general fund levies of school districts.

Presented by:    Representative Ryan Olson
        Senator Tom Hansen
Proponents:    David Owen, Chamber of Commerce & Industry (Handouts: #2)
        Shawn Lyons, Retailers Association
        Michael Kenyon, Department of Revenue and Regulation
        Michael Held, Farm Bureau
Opponents:    Senator Stanford Adelstein

MOTION:     DO PASS SB 149

Moved by:    Greenfield
Second by:    Hunhoff (Bernie)
Action:    Prevailed by roll call vote. (12-1-2-0)

Voting Yes:    Feickert, Gibson, Greenfield, Hunhoff (Bernie), Juhnke, Kirkeby, Kirschman, Lederman, Russell, Solum, Thompson, Olson (Ryan)

Voting No:    Lange

Excused:    Cutler, Noem

        
SB 42: impose the sales tax on the gross receipts derived from renting mini-storage units, self-storage units, or storage space and the use tax on the use of mini-storage units, self-storage units, or storage space.

Presented by:    Andrew Fergel, Department of Revenue & Regulation (Handouts: #3)
Opponents:    Matt Staab, Self, Brandon
        Milton Stromer, Self, Rapid City

        THE CHAIR DEFERRED SB 42 UNTIL FRIDAY, MARCH 6, 2009.

MOTION:     ADJOURN

Moved by:    Kirkeby
Second by:    Feickert
Action:    Prevailed by voice vote.

Linda Daugaard

____________________________

Committee Secretary
Ryan P. Olson, Chair