76th Legislative Session _ 2001

Committee: Senate Taxation
Wednesday, February 07, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    de Hueck
P    Diedrich (Larry)
P    Koetzle
P    McCracken
P    McIntyre
P    Moore
P    Staggers
P    Bogue, Vice-Chair
P    Hainje, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Hainje

MOTION:     TO APPROVE THE MINUTES OF THE PREVIOUS MEETING

Moved by:    Koetzle
Second by:    McIntyre
Action:    Prevailed by voice vote.

          SB 166: repeal the sales and use tax on farm machinery, farm attachment units, and irrigation equipment and to increase the school district general fund levy for agricultural property.

Presented By:    Senator Koskan
Proponents:    Brett Koenecke, Farm Equipment Association
         Pat Tracy, self
Opponents:    Scott Peterson, Department of Revenue
         Mike Held, SD Farm Bureau

MOTION:     DEFER SB 166 TO THE 41ST LEGISLATIVE DAY

Moved by:    Bogue
Second by:    McCracken
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS SB 166

Moved by:    Moore
Second by:    McIntyre
Action:    Failed by roll call vote.(3-6-0-0)

Voting Yes:    McIntyre, Moore, Staggers

Voting No:    de Hueck, Diedrich (Larry), Koetzle, McCracken, Bogue, Hainje

THE MOTION TO DEFER SB 166 TO THE 41ST LEGISLATIVE DAY PREVAILED BY ROLL CALL VOTE.(7-2-0-0)

Voting Yes:    de Hueck, Diedrich (Larry), Koetzle, McCracken, Staggers, Bogue, Hainje

Voting No:    McIntyre, Moore

         SB 171: reduce the sales and use tax on food.

Presented By:    Senator Staggers
Proponents:    Representative Glenski
         Rosemary Quigley, Catholic Diocese of Sioux Falls
Opponents:    Scott Peterson, Department of Revenue

MOTION:     DO PASS SB 171

Moved by:    Staggers
Second by:    Koetzle
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 171 TO THE 41ST LEGISLATIVE DAY

Moved by:    Diedrich (Larry)
Second by:    Bogue
Action:    Prevailed by roll call vote.(5-4-0-0)
Voting Yes:    Diedrich (Larry), McCracken, Moore, Bogue, Hainje

Voting No:    de Hueck, Koetzle, McIntyre, Staggers

         SB 209: permit certain businesses to remit sales and use tax after the machinery is under production.

Presented By:    Senator Olson
Proponents:    David Owen, SD Chamber of Commerce (Handout A)
         Dan Nelson, Sioux Falls Chamber of Commerce

MOTION:     AMEND SB 209

209fa
     On page 2, line 7 of the printed bill, delete " or " and insert " . ".

     On page 2 , delete line 8 .

     On page 2 , line 17, delete " new " .

     On page 2 , line 23, delete " when the equipment and machinery " .

     On page 2 , delete line 24 , and insert "after six months.".

Moved by:    Diedrich (Larry)
Second by:    de Hueck
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 209 AS AMENDED

Moved by:    McCracken
Second by:    de Hueck
Action:    Prevailed by roll call vote.(7-1-1-0)

Voting Yes:    de Hueck, Diedrich (Larry), McCracken, McIntyre, Staggers, Bogue, Hainje

Voting No:    Koetzle

Excused:    Moore

          SB 175: exempt from sales tax certain contract services provided to agricultural

producers by an agent of a parent company through a local contracting entity.

Presented By:    Senator Symens
Proponents:    Brenda Forman, SD Association of Cooperatives
         Greg Kohlenberg, Farmers Cooperatives Association (Handout B)
         Carl Anderson, SD Grain and Feed Association
         Steven Dom, Freemar Farmers Elevator
Opponents:    Scott Peterson, Department of Revenue

MOTION:     AMEND SB 175

175fa
     On page 1, after line 11 of the printed bill, insert:

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

     There are specifically exempted from the provisions of this chapter and from the computation of the tax imposed by it, the gross receipts from employee services provided by an agricultural cooperative to a company, if the agricultural cooperative owns at least twenty-five percent of such company.".

Moved by:    Koetzle
Second by:    McIntyre
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 175 AS AMENDED

Moved by:    Diedrich (Larry)
Second by:    McIntyre
Action:    Was not acted on.

 MOTION:     SUBSTITUTE MOTION DEFER SB 175 TO THE 41ST LEGISLATIVE DAY

Moved by:    Bogue
Second by:    de Hueck
Action:    Failed by roll call vote.(4-5-0-0)

Voting Yes:    de Hueck, McCracken, Bogue, Hainje

Voting No:    Diedrich (Larry), Koetzle, McIntyre, Moore, Staggers


THE MOTION TO DO PASS SB 175 AS AMENDED PREVAILED BY ROLL CALL VOTE.(5-4- 0-0)

Voting Yes:    Diedrich (Larry), Koetzle, McIntyre, Moore, Staggers

Voting No:    de Hueck, McCracken, Bogue, Hainje

 MOTION:     TO AMEND TITLE OF SB 175

175fta
     On page 1, line 2 of the printed bill, after " entity " insert "and certain employee services provided by an agricultural cooperative".

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

 MOTION:     ADJOURN

Moved by:    Koetzle
Second by:    Bogue
Action:    Prevailed by voice vote.

Ryan Olson

____________________________

Committee Secretary
DickHainje, Chair

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