77th Legislative Session _ 2002

Committee: Senate Taxation
Wednesday, January 30, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    de Hueck
P    Koetzle
P    Koskan
P    McCracken
P    McIntyre
P    Moore
P    Staggers
P    Diedrich (Larry), Vice-Chair
P    Bogue, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Bogue.

MOTION:     TO APPROVE THE MINUTES OF THE PREVIOUS MEETING.

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

         SB 95: revise the total amount of revenue payable from taxes on real property within a taxing district.

Presented By:    Dick Howard, SD County Commissioners Association

MOTION:     AMEND SB 95

95fb
     On page 1, line 6 of the printed bill, delete " A taxing district " and insert "Any county".

     On page 1 , line 7, delete everything after " year. " and insert "The decrease may not affect the

amount of revenue payable that may be raised in accordance with sections 2 and 3 of this Act.

     Section 2. That chapter 10-13 be amended by adding thereto a NEW SECTION to read as follows:

     For taxes payable in the year 2003 and each year thereafter, the county auditor shall calculate what the maximum amount of revenue payable the county may request based on growth and the index factor pursuant to §  10-13-35. The calculation shall also show any accumulative percent of the index factor not used by the county. This calculation shall exclude the levy pursuant to §  10-13-36.

     Section 3. That chapter 10-13 be amended by adding thereto a NEW SECTION to read as follows:

     The county may increase the total amount of revenue payable from taxes on real property in any year up to the maximum amount calculated in accordance with section 2 of this Act utilizing any unused index factor from the prior three years. However, such an amount may not exceed the prior three year index factor total or ten percent, whichever is less.".

     On page 1 , delete lines 8 to 10 , inclusive.

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

MOTION:     DO PASS SB 95 AS AMENDED

Moved by:    McCracken
Second by:    McIntyre
Action:    Prevailed by roll call vote.(5-0-4-0)

Voting Yes:    Koskan, McCracken, McIntyre, Diedrich (Larry), Bogue

Excused:    de Hueck, Koetzle, Moore, Staggers

MOTION:     TO AMEND TITLE OF SB 95

95fta
     On page 1, line 1 of the printed bill, after " payable " insert "to counties".

     On page 1 , line 2, delete " within a taxing district " .


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

         SB 125: impose an excise tax on the gross receipts of personal communications system, wireless, and cellular telecommunications companies.

Presented By:    Senator Apa
Proponents:    Paul Kinsman, Department of Revenue
         Dick Howard, SD County Commissioners Association
         Loana Lewis, SD Education Association
         Diana Miller, ESD+5
         Gene Enck, SD School Boards Association
         Bryan Meyer, SD Telelphone Cooperatives Association
Opponents:    Dennis Duncan, Verizon Wireless
         Rae Ann Kelsch, Western Wireless

MOTION:     AMEND SB 125

125fb
     On page 3 of the printed bill, delete lines 3 to 10 , inclusive.

     On page 8 , after line 12, insert:

"
     Section 23. That § 34-45-3 be amended to read as follows:

     34-45-3.   Any governing body may incur any nonrecurring or recurring costs for the installation, maintenance, or operation of a 911 system and may pay such costs by imposing a 911 emergency surcharge for such service in those portions of the governing body's jurisdiction for which 911 service will be provided . If the 911 system is to be provided for any territory included in the jurisdiction of the governing bodies of two or more public agencies the public agencies may enter into a joint agreement for such service unless any such body expressly excludes itself therefrom. Any such agreement shall provide that each governing body which is a customer of such service shall make payment therefor from general revenues. Nothing in this section prevents two or more such governing bodies from entering into a contract to establish a separate legal entity to enter into such an agreement as the customer of the service supplier.

     Section 24. That § §  34-45-4 to 34-45-10, inclusive, be repealed.

     Section 25. That § 34-45-11 be amended to read as follows:

     34-45-11.   Any governing body imposing the charge authorized by § §   34-45-3 and 34-45-4 may

enter into an agreement directly with the service supplier of the 911 system or may contract and cooperate with any public agency or with other states or their political subdivision for the administration of a 911 system as provided by law.

     Section 26. That § 34-45-12 be amended to read as follows:

     34-45-12.   Funds collected from the charge imposed pursuant to § §   34-45-3 and 34-45-4 shall be credited to a special fund, apart from the general fund of the public agency, for payments of nonrecurring and recurring costs and for the general operational expense of the 911 related service, including but not limited to the personnel costs of the dispatchers or the monthly contract costs billed by the public safety answering point. If the 911 system is discontinued, any money remaining in the fund after all payments to the service supplier pursuant to this section have been made shall be transferred to the general fund of the public agency or proportionately to the general funds of each participating public agency.

     Section 27. Sections 23 to 26, inclusive, of this Act are effective on January 1, 2004.".


Moved by:    Moore
Second by:    Staggers
Action:    Failed by roll call vote.(2-7-0-0)

Voting Yes:    Moore, Staggers

Voting No:    de Hueck, Koetzle, Koskan, McCracken, McIntyre, Diedrich (Larry), Bogue

MOTION:     AMEND SB 125

125fa
     On page 3 of the printed bill, delete lines 7 and 8 , and insert:

"

                 to decrease the local effort as defined in subdivision 13-13-10.1(6) by decreasing the general fund levies of a school district established pursuant to §  10-12-42; and".

Moved by:    Koskan
Second by:    Diedrich (Larry)
Action:    Failed by roll call vote.(4-5-0-0)

Voting Yes:    Koskan, McCracken, Staggers, Bogue

Voting No:    de Hueck, Koetzle, McIntyre, Moore, Diedrich (Larry)



MOTION:     DO PASS SB 125

Moved by:    de Hueck
Second by:    McIntyre
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 125 TO THE 36TH LEGISLATIVE DAY

Moved by:    Moore
Second by:    Koetzle
Action:    Prevailed by roll call vote.(5-4-0-0)

Voting Yes:    Koetzle, Moore, Staggers, Diedrich (Larry), Bogue

Voting No:    de Hueck, Koskan, McCracken, McIntyre

         SB 133: revise the distribution of revenue from the petroleum release compensation and tank inspection fee.

Presented By:    Senator Larry Diedrich
Proponents:    Jeff Fox, SD Ethanol Association
         Todd Sneller, SD Ethanol Producers (Handout 133-A)
         Bill Paulson, SD Ethanol Producers
         David Gillen, SD Corn Growers
         John Silvernail, Lake Area Development Corporation
         Reid Jensen, SD Corn Growers Association (Handout 133-B)
         Bob Metz, self

The Chair deferred SB 133 until Friday, February 1st.

MOTION:     ADJOURN

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

Ryan Olson

____________________________

Committee Secretary
Eric H.Bogue, Chair


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