House Taxation Minutes 01/17/2002 7:45 AM

77^th Legislative Session _ 2002

Committee: House Taxation

Thursday, January 17, 2002

                                            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 1-15-02

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

         HB 1001: ratify the Uniform Sales and Use Tax Administration Act and to implement the uniform and simplified features proposed by the Streamlined Sales Tax Project.

Presented By:    Scott Peterson, Director of Sales Tax, South Dakota Department of Revenue
Proponents:    Jerry Wheeler, SD Retailers

         Bob Riter, Farm Equipment Association
         Brenda Forman, SD Association of COOPS
Opponents:    Senator Kermit Staggers
         Representative Jim Hundstad

         HB 1002: impose a gross receipts tax on certain visitor-related businesses.

Presented By:    Scott Petterson, Director of Sales Tax, South Dakota Department of Revenue
Proponents:    Harry Christianson, VIA
         David Owen, South Dakota Chamber Industry
         Pat McElgun, Rapid City Chamber of Commerce
Opponents:    Senator Kermit Staggers

         HB 1003: authorize a municipal gross receipts tax on certain lodging, alcoholic beverages, prepared food, and admissions.

Presented By:    Scott Peterson, Director of Sales Tax, South Dakota Department of Revenue
Proponents:    Yvonne Taylor, SD Municipal League
         Pat McElgun, Rapid City Chamber of Commerce
Opponents:    Senator Kermit Staggers

MOTION:     AMEND HB 1001

On page 2, line 20 of the printed bill, delete " Department of Revenue or the department's " and insert "secretary of revenue or the secretary's".

On page 10 , delete lines 2 to 24 , inclusive.

On page 11 , delete lines 1 to 24 , inclusive.

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

On page 12 , line 20, delete " discounts for any purpose allowed and taken " .

On page 12 , line 21, delete " on sales may not be included as gross receipts, nor may " .

On page 12 , line 22, after " customer " insert "are not gross receipts".

On page 13 , delete lines 13 to 16 , inclusive.

On page 14 , delete lines 2 to 5 , inclusive, and insert "There are exempted from the provisions of this chapter and the tax imposed by it, gross receipts from the sale of parts or repairs on machinery

or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment, if the part replaces a farm machinery or irrigation equipment part assigned a specific or generic part number by the manufacturer of the farm machinery or irrigation equipment.".

On page 17 , line 6, delete " 10-59-19 " and insert "10-59-22".

On page 19 , line 9, delete " , digital products, " .

On page 19 , line 10, delete " , digital product, " .

On page 21 , line 23, remove the overstrikes from " ~~tangible goods, wares, merchandise, gas, and~~ " .

On page 21 , remove the overstrikes from line 24 .

On page 22 , delete lines 1 and 2 .

On page 22 , line 3, delete " includes electricity, water, gas, and steam " .

On page 22 , delete lines 12 to 24 , inclusive.

On page 23 , delete lines 1 to 24 , inclusive.

On page 24 , delete lines 1 to 24 , inclusive.

On page 25 , delete lines 3 to 6 , inclusive, and insert "There are exempted from the provisions of this chapter and the tax imposed by it, the use of parts or repairs on machinery or equipment which are clearly identifiable as used primarily for agricultural purposes, including irrigation equipment, if the part replaces a farm machinery or irrigation equipment part assigned a specific or generic part number by the manufacturer of the farm machinery or irrigation equipment.".

On page 28 , line 17, overstrike " If the proceeds of the tax " .

On page 28 , overstrike lines 18 to 20 , inclusive.

On page 31 , after line 1, insert:

" Section 48. That chapter 10-52 be amended by adding thereto a NEW SECTION to read as follows:

For the purposes of the tax imposed by this chapter, the transportation of tangible personal property and passengers shall be taxed only if the origins and destination of the property or passenger are within the same municipality."

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

The Chair at this time asked for Committee action.

MOTION:     DO PASS HB 1001 AS AMENDED

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

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

Voting No:    Flowers, Hundstad, Nachtigal, Napoli

MOTION:     AMEND HB 1002

On page 6 of the printed bill, delete lines 1 and 2 , and insert:

" Section 12. The definitions, administrative, collection, and enforcement provisions of chapter 10- 45 and 10-46 apply to the tax imposed by this Act, where applicable".

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

The Chair at this time asked for Committee action.

MOTION:     DO PASS HB 1002 AS AMENDED

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

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

Voting No:    Flowers, Hundstad, Nachtigal

MOTION: AMEND HB 1003

On page 4 of the printed bill, delete lines 15 and 16 , and insert:

" Section 7. The definitions, administrative, collection, and enforcement provisions of chapter 10- 45 and 10-46 apply to the tax imposed by this Act, where applicable.".

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

The Chair at this time asked for Committee action.

MOTION:     DO PASS HB 1003 AS AMENDED

Moved by:    Napoli
Second by:    Hennies (Don)
Action:    Prevailed by roll call vote.(14-1-0-0)

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

Voting No:    Flowers

MOTION:     ADJOURN

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

____________________________

Committee Secretary

Richard “Dick” E. Brown, Chair

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