Senate Taxation Minutes 02/24/2001 9:00 AM

76^th Legislative Session _ 2001

Committee: Senate Taxation

Saturday, February 24, 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:    Diedrich (Larry)
Second by:    McCracken
Action:    Prevailed by voice vote.

         HB 1295: allow certain interstate shipments of wine.

Presented By:    Representative Derby
Proponents:    Jeff Fox, Wine Industry (Handout A)
         Dave Gerdes, self
Opponents:    Jeremiah Murphy, Sodak Distributing
         Tim Dougherty, SD Retail Liquor Dealers Association

Comments were made by Paul Kinsman, Department of Revenue

MOTION: AMEND HB 1295

1295fe

On page 2 , line 8 of the House engrossed bill, after " Any " insert "South Dakota".

On page 2 , line 8, before " license " insert "South Dakota".

On page 2, after line 16, insert:

" Section 4. Notwithstanding any other provision of law, any licensee who holds a valid license in another state for the retail sale of wine for consumption off the licensed premise is permitted to ship wine directly to any person in this state for personal use if such person purchases the wine while physically present at the licensed premise and the licensee has verified that the person purchasing the wine is of age. No licensee may ship more than twelve cases of wine in any calendar year to a person in this state and no case may contain more than nine liters of wine. For tax purposes, any sale of wine pursuant to this section is considered to have occurred in the state where the licensee is located.".

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

MOTION:     AMEND HB 1295

1295fa

On page 1, line 7 of the House engrossed bill, after " Revenue. " insert "The package dealer shall order the wine through a wholesaler licensed pursuant to subdivision 35-4-2(2) and the wholesaler shall arrange the purchase of the wine.".

On page 1 , line 13, delete "No" and insert "If the wholesaler orders ten or less cases of a particular brand of wine in one calendar year pursuant to this section, no".

On page 1 , line 14, delete everything after " imposed " and insert ".".

On page 1 , line 15, delete " section. " .

On page 2 , line 2, after " wine. " insert "However, if the delivery of the wine does not result in a completed sale to the person who placed the original order, the package dealer or wholesaler may sell the wine in the ordinary course of business.".