76th Legislative Session _ 2001

Committee: House Taxation
Thursday, February 15, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Flowers
P    Frost
P    Garnos
P    Hennies (Don)
P    Hundstad
P    Koistinen
P    Nachtigal
P    Napoli
P    Peterson (Jim)
P    Slaughter
P    Teupel
P    Van Etten
P    Wick
P    Jaspers, Vice-Chair
P    Brown (Richard), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Richard “Dick” Brown

MOTION:     TO APPROVE THE MINUTES OF 02-13-01

Moved by:    Napoli
Second by:    Garnos
Action:    Prevailed by voice vote.

         HB 1295: allow certain interstate shipments of wine.

Presented By:    Representative Mike Derby (Handouts 1-3)
Proponents:    Dave Gerdes, Self


        Jeff Fox, Wine Institute
Opponents:    Jeremiah Murphy, SoDak
        Bill Dougherty, SoDak

MOTION:     AMEND HB 1295

1295tc
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. Notwithstanding any other provision of law, any person who is at least twenty-one years of age may purchase and receive wine from another state as provided in this section if a reciprocal agreement exists between this state and the state from which the wine is sent. The person shall place an order with a package dealer as defined in § 35-1-1 on a form prescribed by the Department of Revenue. The package dealer shall inform the purchaser of the cost of the wine, the amount of any tax that would apply to the purchase pursuant to § 35-5-3, the amount of sales tax that would apply to the purchase, and the amount of any charges for freight and handling. The package dealer may order the wine and shall provide the wine to the purchaser on receipt of payment for the cost of the wine and the taxes and freight and handling charges associated with the purchase. Wine purchased pursuant to this Act may only be delivered and received by the purchaser from a package dealer as defined in § 35-1-1. No registration fee pursuant to chapter 39-13 may be imposed on any purchase of wine made pursuant to this section. No person may receive more than twelve cases of wine, containing no more than nine liters per case, in any calendar year for personal use from another state under this Act. No person who receives wine under this Act may resell any of the wine. The Department of Revenue shall promulgate rules pursuant to chapter 1-26 to provide for the reporting and tracking of information related to the sale of wine under this Act and to prescribe forms for the implementation of this Act.

     Section 2. Any licensee who holds a license for the retail sale of wine for consumption off the licensed premises may ship no more than twelve cases of wine per shipment. A case may contain no more than nine liters per case in any one shipment. Any wine sold may only be for personal use and not for resale. The wine may only be sold directly to a resident of another state if the state to which the wine is sent allows residents of the state to receive wine sent from outside that state. The sale is considered to have occurred in this state.

     Section 3. Any container of wine being shipped into or out of this state shall be clearly labeled to indicate that it contains alcoholic beverages and that it may not be delivered to a person who is not at least twenty-one years of age or to a person who is visibly intoxicated."


Moved by:    Flowers
Second by:    Frost
Action:    Prevailed by voice vote.



MOTION:     DO PASS HB 1295 AS AMENDED

Moved by:    Napoli
Second by:    Frost
Action:    Prevailed by roll call vote.(11-2-2-0)

Voting Yes:    Frost, Garnos, Hennies (Don), Hundstad, Koistinen, Napoli, Slaughter, Teupel, Van Etten, Wick, Brown (Richard)

Voting No:    Nachtigal, Peterson (Jim)

Excused:    Flowers, Jaspers

         HB 1187: revise the time period for adjusting property tax levies for the purpose of maintaining the state's percentage of aid to general and special education.

Presented By:    Todd Vik, DECA

MOTION:     DO PASS HB 1187

Moved by:    Napoli
Second by:    Hennies (Don)
Action:    Prevailed by roll call vote.(15-0-0-0)

Voting Yes:    Flowers, Frost, Garnos, Hennies (Don), Hundstad, Koistinen, Nachtigal, Napoli, Peterson (Jim), Slaughter, Teupel, Van Etten, Wick, Jaspers, Brown (Richard)

MOTION:     PLACE HB 1187 ON CONSENT

Moved by:    Wick
Second by:    Frost
Action:    Prevailed by voice vote.

         HB 1153: increase the tax on cigarettes and other tobacco products and to dedicate the increased revenue to a trust fund.

Presented By:    Representative Stan Adelstein (Handout 4)
Proponents:    Representative Donald Van Etten
Opponents:    Jeremiah Murphy, Self
        Jerry Wheeler, SD Retailers

MOTION:     AMEND HB 1153

1153fd
     On page 1, line 8 of the printed bill, delete " thirteen and " and insert "five".

     On page 1 , line 9, delete " one-half " .

     On page 1 , line 10, delete " thirteen and " and insert "five and three-twentieths".

     On page 1 , line 11, delete " eight-tenths " .

     On page 1 , delete lines 12 to 15 , inclusive.

     On page 2 , delete lines 1 to 8 , inclusive.

     On page 2 , line 11, delete " sections 1 and 2 " and insert "section 1".

     On page 2 , line 12, delete " When such fund has a " .

     On page 2 , delete lines 13 to 23 , inclusive.

Moved by:    Van Etten
Second by:    Frost
Action:    Prevailed by voice vote.

MOTION:     AMEND HB 1153

1153fe
     On page 2 of the printed bill, delete lines 9 to 12 , inclusive.

Moved by:    Jaspers
Second by:    Garnos
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1153 TO THE 41ST LEGISLATIVE DAY

Moved by:    Hennies (Don)
Second by:    Flowers
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Flowers, Garnos, Hennies (Don), Hundstad, Nachtigal, Napoli, Peterson (Jim)



Voting No:    Frost, Koistinen, Slaughter, Teupel, Van Etten, Wick, Jaspers, Brown (Richard)

MOTION:     SUBSTITUTE MOTION TO TABLE HB 1153

Moved by:    Napoli
Second by:    Flowers
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Flowers, Garnos, Hennies (Don), Hundstad, Nachtigal, Napoli, Peterson (Jim)

Voting No:    Frost, Koistinen, Slaughter, Teupel, Van Etten, Wick, Jaspers, Brown (Richard)

MOTION:     SUBSTITUTE MOTION AMEND HB 1153

1153ff
     On page 2, line 11 of the printed bill, delete " Any funds collected pursuant to sections 1 and 2 of this Act " and insert "If the total revenue received from the tax imposed by §  10-50-3 and section 1 of this Act exceeds the total revenue received in fiscal year 2001 from the tax imposed by §  10-50-3, such excess from the tax imposed by section 1 of this Act".

Moved by:    Wick
Second by:    Jaspers
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1153 AS AMENDED

Moved by:    Van Etten
Second by:    Frost
Action:    Prevailed by roll call vote.(8-7-0-0)

Voting Yes:    Frost, Koistinen, Slaughter, Teupel, Van Etten, Wick, Jaspers, Brown (Richard)

Voting No:    Flowers, Garnos, Hennies (Don), Hundstad, Nachtigal, Napoli, Peterson (Jim)

MOTION:     TO AMEND TITLE OF HB 1153

1153fta
     On page 1, line 1 of the printed bill, delete " and other tobacco products " .

Moved by:    Jaspers


Second by:    Garnos
Action:    Prevailed by voice vote.

         HB 1163: exempt the gross receipts from veterinarian services, animal specialty services, livestock semen, certain transportation services, certain auctions, and newspaper subscriptions from sales and use tax.

Presented By:    Representative Kloucek
Proponents:    Dave Bordewyk, SDNA
         Representative Richter
        Bob Thimja, The Ramkota Companies
Opponents:    Gary Viken, Department Secretary for the South Dakota Department of Revenue

MOTION:     AMEND HB 1163

1163fa
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

     There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts from membership fees paid to any lodging house and hotel membership organization operated for the benefit of its members. However, this exemption does not apply to any membership fee that represents payment for tangible personal property and services provided by the membership organization.

     Section 2. That chapter 10-46 be amended by adding thereto a NEW SECTION to read as follows:

     There are hereby exempted from the provisions of this chapter and the computation of the tax imposed by it, gross receipts from membership fees paid to any lodging house and hotel membership organization operated for the benefit of its members. However, this exemption does not apply to any membership fee that represents payment for tangible personal property and services provided by the membership organization."

Moved by:    Hundstad
Second by:    Hennies (Don)
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1163 AS AMENDED



Moved by:    Jaspers
Second by:    Frost
Action:    Prevailed by roll call vote.(12-3-0-0)

Voting Yes:    Flowers, Frost, Garnos, Hundstad, Nachtigal, Napoli, Peterson (Jim), Slaughter, Van Etten, Wick, Jaspers, Brown (Richard)

Voting No:    Hennies (Don), Koistinen, Teupel

MOTION:     TO AMEND TITLE OF HB 1163

1163fta
     On page 1, line 1 of the printed bill, delete everything after " to " and insert "exempt certain membership fees from sales and use tax.".

     On page 1 , delete lines 2 and 3 .

Moved by:    Flowers
Second by:    Jaspers
Action:    Prevailed by voice vote.

         HB 1164: revise certain entrance fees for state parks and recreation areas.

Presented By:    Representative Kloucek
Opponents:    Doug Hofer, State Park Director
        Kathy Zander, Great Lakes of South Dakota Assoc.

MOTION:    DEFER HB 1164 TO THE 41ST LEGISLATIVE DAY

Moved by:    Jaspers
Second by:    Van Etten
Action:    Was not acted on.

MOTION:     CALL THE QUESTION

Moved by:    Teupel
Second by:    Hennies (Don)
Action:    Prevailed by voice vote.

MOTION:     DEFER HB 1164 TO THE 41ST LEGISLATIVE DAY


Moved by:    Jaspers
Second by:    Van Etten
Action:    Prevailed by roll call vote.(11-4-0-0)

Voting Yes:    Frost, Garnos, Hennies (Don), Koistinen, Napoli, Slaughter, Teupel, Van Etten, Wick, Jaspers, Brown (Richard)

Voting No:    Flowers, Hundstad, Nachtigal, Peterson (Jim)

MOTION:     ADJOURN

Moved by:    Frost
Second by:    Peterson (Jim)
Action:    Prevailed by voice vote.

Dawn Magee

____________________________

Committee Secretary
Richard “Dick” E. Brown, Chair


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