House Taxation Minutes 02/20/2001 7:45 AM

76^th Legislative Session _ 2001

Committee: House Taxation

Tuesday, February 20, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Flowers
P    Frost
P    Garnos
P    Hennies (Don)
P    Hundstad
P    Koistinen
P    Nachtigal
E    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 02-15-01

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

         SB 46: authorize the department to issue direct payment permits in certain instances.

Presented By:    Scott Peterson, South Dakota Department of Revenue
Proponents:    David Owen, South Dakota Chamber
        John Brown, NFIB

MOTION:     DO PASS SB 46

Moved by:    Frost
Second by:    Van Etten
Action:    Prevailed by roll call vote.(14-0-1-0)

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

Excused:    Napoli

MOTION:     PLACE SB 46 ON CONSENT

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

         SB 140: clarify certain provisions relating to the payment of taxes to municipalities from the revenues of electric cooperatives providing service within a municipality.

Presented By:    Brian Meyer, South Dakota Rural Electric CoOperative Association

MOTION:     DO PASS SB 140

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

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

Excused:    Napoli

MOTION:     PLACE SB 140 ON CONSENT

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

         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 and certain employee services provided by an agricultural cooperative.

Presented By:    Representative Mike Jaspers
Proponents:    Senator Paul Symens (Handout 1)
        Brenda Forman, South Dakota Association of COOPs
        Greg Kohlenberg, Farmers COOP Assn., Mitchell South Dakota
        Carl Anderson, South Dakota Grain & Feed
Opponents:    Scott Peterson, South Dakota Department of Revenue

MOTION:     AMEND SB 175

On page 1, after line 12 of the Senate engrossed bill, insert:

" Section 2. That chapter 10-46 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 the sale of services rendered by a parent company to a local cooperative, if the local cooperative is a local contracting entity, for the purpose of paying for the services of an agent who meets with agricultural producers promoting, educating, and providing technical assistance and information on the parent company's products which are sold through a local contracting entity.".

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

MOTION:     TO AMEND TITLE OF SB 175

On page 1, line 1 of the Senate engrossed bill, after " sales " insert "and use".

On page 1 , delete line 3 , and insert ".".

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

MOTION:     DO PASS SB 175 AS AMENDED

Moved by:    Jaspers
Second by:    Peterson (Jim)

Action:    Was not acted on.

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

Moved by:    Wick
Second by:    Van Etten
Action:    Failed by roll call vote.(3-10-2-0)

Voting Yes:    Slaughter, Van Etten, Wick

Voting No:    Flowers, Frost, Garnos, Hennies (Don), Hundstad, Koistinen, Peterson (Jim), Teupel, Jaspers, Brown (Richard)

Excused:    Nachtigal, Napoli

MOTION:     DO PASS SB 175 AS AMENDED

Moved by:    Jaspers
Second by:    Peterson (Jim)
Action:    Prevailed by roll call vote.(10-3-2-0)

Voting Yes:    Flowers, Frost, Garnos, Hennies (Don), Hundstad, Koistinen, Peterson (Jim), Teupel, Jaspers, Brown (Richard)

Voting No:    Slaughter, Van Etten, Wick

Excused:    Nachtigal, Napoli

At this time, Chair Richard “Dick” Brown passed the gavel to Vice Chair Jaspers.

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

Presented By:    Representative Richard “Dick” Brown
Proponents:    David Owen, South Dakota Chamber (Handout 2)
        Dan Nelson, Sioux Falls Chamber of Commerce (Handout 3)
        Bob Miller, South Dakota Electric Utilities

MOTION:     AMEND SB 209

On page 2, line 13 of the Senate engrossed bill, delete " a " and insert "an electrical generation, electrical transmission,".

On page 2 , line 22, delete " a " and insert "an electrical generation, electrical transmission,".

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

MOTION:     DO PASS SB 209 AS AMENDED

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

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

Excused:    Nachtigal, Napoli, Teupel

MOTION:     PLACE SB 209 ON CONSENT

Moved by:    Brown (Richard)
Second by:    Frost
Action:    Failed by voice vote.

Vice Chair Jaspers turned the gavel back over to Chair Brown.

MOTION:     ADJOURN

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

____________________________

Committee Secretary

Richard “Dick” E. Brown, Chair

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