78th Legislative Session _ 2003

Committee: House Taxation
Tuesday, March 04, 2003

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Cutler
P    Garnos
A    Hackl
P    Hundstad
P    Juhnke
P    Kroger
P    Lange
P    McLaughlin
P    Rave
P    Teupel
P    Valandra
P    Van Etten
P    Weems
P    Koistinen, Vice-Chair
P    Wick, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Rep. Hal Wick, Chair

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 27, 2003

Moved by:    Juhnke
Second by:    Weems
Action:    Prevailed by voice vote.

          SB 35: exempt certain gross receipts from sales and use taxes.

Proponents:    Jerry Wheeler, SD Retailers Assn.
        Gary Viken, Secretary, South Dakota Department of Revenue

MOTION:     AMEND SB 35

35fo
     On the Senate engrossed bill, delete everything after the enacting clause and insert:

"

     Section 1. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

     There are hereby exempted from the provisions of this chapter and the tax imposed by it, gross receipts received by a retailer from a manufacturer, wholesaler, or distributor pursuant to a written contract between the retailer and manufacturer, wholesaler, or distributor that requires the retailer to display the manufacturer, wholesaler, or distributor's product or signage in a specified manner or location. Any discount or deferred payment received by a retailer from a distributor, wholesaler, or manufacturer for purchasing a product for sale at retail does not constitute gross receipts subject to the tax imposed by this chapter."

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

 MOTION:     DO PASS SB 35 AS AMENDED

Moved by:    Cutler
Second by:    Van Etten
Action:    Prevailed by roll call vote.(14-0-0-1)

Voting Yes:    Cutler, Garnos, Hundstad, Juhnke, Kroger, Lange, McLaughlin, Rave, Teupel, Valandra, Van Etten, Weems, Koistinen, Wick

Absent:    Hackl

 MOTION:     RECOMMEND TOPIC FOR SUMMER STUDY

        A study to evaluate the impact of cross-border commerce on South Dakota businesses and subsequent revenue losses or gains to the state treasury.

Comments by: Rep. Gerald Lange (Handout A)

Moved by:    Hundstad
Second by:    Kroger
Action:    Prevailed by roll call vote.(10-4-0-1)


Voting Yes:    Cutler, Garnos, Hundstad, Kroger, Lange, McLaughlin, Rave, Teupel, Valandra, Weems

Voting No:    Juhnke, Van Etten, Koistinen, Wick

Absent:    Hackl

 MOTION:     RECOMMEND TOPIC FOR SUMMER STUDY

        A study on the sales tax on food and financial impact that would occur if food is exempted from sales tax. The study shall also examine the expenditures and percent of income spent by various household income levels on food.

Comments by: Rep. Hal Wick

Moved by:    Kroger
Second by:    Cutler
Action:    Prevailed by roll call vote.(13-0-1-1)

Voting Yes:    Cutler, Garnos, Hundstad, Juhnke, Kroger, Lange, McLaughlin, Rave, Teupel, Valandra, Weems, Koistinen, Wick

Excused:    Van Etten

Absent:    Hackl

 MOTION:     RECOMMEND TOPIC FOR SUMMER STUDY

        A study of incentives that may be made available to communities and reservations to pursue economic and community development opportunities, especially in areas with declining population.

Comments by: Rep. Cooper Garnos

Moved by:    Cutler
Second by:    Rave
Action:    Prevailed by roll call vote.(12-1-1-1)

Voting Yes:    Cutler, Garnos, Hundstad, Juhnke, Kroger, Lange, McLaughlin, Rave, Teupel, Valandra, Weems, Wick

Voting No:    Koistinen

Excused:    Van Etten

Absent:    Hackl

 MOTION:     ADJOURN

Moved by:    Rave
Second by:    Cutler
Action:    Prevailed by voice vote.

Jackie Barber

____________________________

Committee Secretary
Hal Wick, Chair

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