77th Legislative Session _ 2002

Committee: House Taxation
Thursday, January 24, 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, Chair

MOTION:     TO APPROVE THE MINUTES OF 1-22-02

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

          HB 1102: revise the gross receipts tax that applies to certain telephone companies.

Presented By:    Rperesentative Gordon Pederson
Proponents:    Brian Meyer, SDATC, Handouts #1 & #2
Opponents:    Paul Kinsman, Director of Property and Special Taxes, South Dakota Department of Revenue

MOTION:     AMEND HB 1102


1102fa
     On page 2 of the printed bill, delete lines 1 to 9 , inclusive, and insert:

"    More than 2, but not more than 3    4    More than 3    5

SCHEDULE B

        Percentage of Tax on

    Gross Annual Revenue        Gross Revenue

    Not more than                    $ 15,000        2
    More than $15,000 but not more than    20,000        3
    More than 20,000 but not more than    50,000        4
    More than 50,000 but not more than     25,000,000 50,000,000     5".


     On page 2 , after line 11, insert:

"      Section 2. That § 10-33-21 be amended to read as follows:

     10-33-21.   All persons, corporations, cooperatives, and associations engaged in furnishing and providing telephone and exchange service comprising rental and toll service by means of wired circuits and otherwise and whose annual gross receipts are less than twenty-five fifty million dollars shall be taxed on the basis of gross receipts, according to one of the two following schedules. Whichever schedule provides the lesser percentage of tax shall be applied by the Department of Revenue:

SCHEDULE A

    Average Number of Customers   Percentage of Tax on  
    Per Mile of Line (Density)   Gross Revenue  
    Not more than 1   2  
    More than 1, but not more than 2   3  
    More than 2 , but not more than 3   4  
    More than 3   5  
SCHEDULE B

    Percentage of Tax on  
    Gross Annual Revenue     Gross Revenue  
    Not more than   $ 15,000   2  
    More than $15,000 but not more than   20,000   3  
    More than 20,000 but not more than   50,000 50,000,000   4  
    More than 50,000 but not more than   25,000,000   5  

     However, no telephone company operating in this state shall be taxed less than an amount equal to fifty cents per year per telephone serviced.

     Section 3. Section 2 of this Act is effective on July 1, 2004.".


Moved by:    Napoli
Second by:    Frost
Action:    Failed by voice vote.

 MOTION:     AMEND HB 1102

1102fb
     On page 2 of the printed bill, remove the overstrikes from lines 1 and 2 .

     On page 2 , delete lines 8 and 9, and insert:

"
    More than 20,000 but not more than   50,000   4  
    More than 50,000 but not more than   25,000,000 50,000,000   5  
".


Moved by:    Napoli
Second by:    Koistinen
Action:    Prevailed by roll call vote.(10-5-0-0)

Voting Yes:    Flowers, Frost, Garnos, Hundstad, Koistinen, Nachtigal, Napoli, Peterson (Jim), Slaughter, Brown (Richard)

Voting No:    Hennies (Don), Teupel, Van Etten, Wick, Jaspers

 MOTION:     DO PASS HB 1102 AS AMENDED

Moved by:    Frost
Second by:    Napoli
Action:    Prevailed by roll call vote.(11-4-0-0)

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

Voting No:    Teupel, Van Etten, Wick, Jaspers

          HB 1188: revise certain penalties for moving or obtaining a used mobile home or manufactured home without an affidavit from the county treasurer.

Presented By:    Representative John Teupel, Handouts #3 & #4
Proponents:    Deb Tridle, Lawrence County Treasurer
         Debra Hillmer, Director of Motor Vehicles, South Dakota Department of Revenue

MOTION:     AMEND HB 1188

1188fa
     On page 1, line 5 of the printed bill, after " manufactured home " insert " , prior to moving the home, ".

     On page 1 , line 10, after " affidavit " insert " , prior to moving the home, ".

     On page 2 , line 4, after " registered. " insert " The court shall notify the Department of Revenue of any violation resulting in a civil penalty assessment for failure to obtain a tax affidavit prior to moving a mobile or manufactured home. ".

     On page 2 , line 21, after " registered. " insert "The court shall notify the Department of Revenue of any violation resulting in a civil penalty assessment for failure to obtain a tax affidavit prior to moving a mobile or manufactured home.".

     On page 4 , line 12, overstrike " fifteen " and insert " thirty ".

     On page 4 , line 13, overstrike " delivery " and insert " sale ".

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

The Chair deferred HB 1188 until 1-29-02.

         HB 1209: revise the qualifications for an owner-occupied single-family dwelling classification.

Presented By:    Representative Orville Smidt
Opponents:    Paul Kinsman, Director of Property and Special Taxes, South Dakota Department of Revenue
         Curtis Nupen, Meade County

MOTION:     DEFER HB 1209 TO THE 36TH LEGISLATIVE DAY

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

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

Voting No:    Hennies (Don)

         HB 1219: revise the index factor for determining certain freezes on property assessments.

Presented By:    Representative Thomas Hennies
Proponents:    Curt Nupen, Meade County
         Ken Davis, Pennington County
         Ron Buskerud, Pennington County
     Paul Kinsman, Director of Property and Special Taxes, South Dakota Department of Revenue

MOTION:     DO PASS HB 1219

Moved by:    Van Etten
Second by:    Napoli
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)

         HB 1233: provide compensation to retailers for collecting and remitting the sales tax on a monthly basis.

Presented By:    Representative Cooper Garnos

The Chair deferred HB 1233 until 1-29-02.

Dawn Magee

____________________________

Committee Secretary
Richard “Dick” E. Brown, Chair

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