House Taxation Minutes 01/31/2002 7:45 AM

77^th Legislative Session _ 2002

Committee: House Taxation

Thursday, January 31, 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 1-29-02

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

         HB 1252: increase the tax on cigarettes and other tobacco products and to dedicate the revenues.

Presented By:    Representative Don Van Etten

Proponents:    Kitty Kinsman, American Cancer Society, #1
         Representative Tom Hansen, Dist. 21
         Jeff Fox, South Dakota Ethanol , #2
         Paul Knecht, South Dakota Dental Association
         Terry Dosch, Council of Community Substance Abuse/Prevention Programs
         Dean Krogman, Ameri
Opponents:    Ron Olinger, South Dakota Retailers, #3 & #4
         Paul Kinsman, Director of Property and Special Taxes, South Dakota Department of Revenue, #5
         Jeremiah D. Murphy, RJR Tobacco
         Jeremiah M. Murphy, B & W Tobacco

MOTION:     AMEND HB 1252

On page 1, line 8 of the printed bill, delete " twenty-five " and insert "thirteen and one-half".

On page 1 , line 10, delete " twenty-five and three- " and insert "thirteen and eight-tenths".

On page 1 , line 11, delete " tenths " .

On page 2 , line 2, delete " fifteen " and insert "eight".

On page 4 , line 20, delete everything after "34-46-12." and insert:

"

The revenue deposited in the trust fund pursuant to this Act shall be distributed as follows:

(1) Forty percent of the revenue shall be used for the purpose of funding medicaid;

(2) Thirty percent of the revenue shall be distributed annually in the same manner and at the same time as the permanent school fund income is apportioned pursuant to § 13-13-1;

(3) Twenty-five percent of the revenue shall be transferred to the ethanol fuel fund; and

(4) Five percent of the revenue shall be used to implement elements of the tobacco prevention and reduction plan.".

On page 4 , delete lines 21 to 24 , inclusive.

Moved by: Jaspers

Second by:    Frost
Action:    Prevailed by voice vote.

MOTION:     AMEND HB 1252

On page 1 of the printed bill, delete lines 12 to 14 , inclusive.

On page 2 , delete lines 1 to 9 , inclusive.

Moved by:    Flowers
Second by:    Teupel
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Flowers, Garnos, Hennies (Don), Nachtigal, Peterson (Jim), Teupel, Wick

Voting No:    Frost, Hundstad, Koistinen, Napoli, Slaughter, Van Etten, Jaspers, Brown (Richard)

MOTION:     DO PASS HB 1252 AS AMENDED

Moved by:    Frost
Second by:    Van Etten
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1252 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Hennies (Don)
Second by:    Flowers
Action:    Prevailed by roll call vote.(9-6-0-0)

Voting Yes:    Flowers, Hennies (Don), Hundstad, Koistinen, Nachtigal, Napoli, Slaughter, Wick, Jaspers

Voting No:    Frost, Garnos, Peterson (Jim), Teupel, Van Etten, Brown (Richard)

         HB 1135: provide for the reclassification of certain real property.

Presented By:    Representative Jim Lintz
Proponents:    Dick Howard, SDCCA
         Ken McFarland, Minnehaha County, #6
         Jerald P. Seidel, Lake County, #7

         Dan Nelson, Sioux Falls Chamber
         David Owen, South Dakota Chamber
Opponents:    Leslie Donner, Self

MOTION:     DO PASS HB 1135

Moved by:    Flowers
Second by:    Jaspers
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)

MOTION:     PLACE HB 1135 ON CONSENT CALENDAR

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

         HB 1260: provide certain restrictions for local governments opting out of the limitation on tax levy increases.

Presented By:    Representative Barry Jensen
Proponents:    Brian Heupel, DeSmet School
         Linus Storms, ASBSD
         Diana Miller, ESD + 5
         Lona Lewis, SDEA
         Dick Howard, SDCCA

MOTION:     AMEND HB 1260

On page 2, line 5 of the printed bill, delete " the " and insert " a county's ".

On page 2 , line 6, delete " fund balance " and insert " balance of the general fund of any county pursuant to § 7-21-18.1 ".

On page 2 , line 7, delete " governing body " and insert " county ".

Moved by: Jaspers
Second by: Frost

Action:    Prevailed by voice vote.

MOTION:     ADJOURN

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

Dawn Magee

____________________________

Committee Secretary

Richard “Dick” E.

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