Home > 2015 SD Legislative Session > House Taxation committee has 3 bills on Thurs Mar 5

House Taxation committee has 3 bills on Thurs Mar 5

March 4, 2015

apartment-buildingOn Thursday, March 5th, at 7:45 AM the SD House Taxation committee will take on 3 bills.

SB 189 – SoDakLiberty Posts – Provide a tax credit to insurance companies that contribute to an organization providing educational scholarships to certain students and instructional supply grants to certain teachers and parents.

Sen Phyllis Heineman (R, Dist 13) and Rep Brian Gosch (R, Dist 32) are the prime sponsors. This bill has had a journey. This bill was amended in Senate Ed. It then failed a Do Pass motion by 3-3. It was then sent to the floor with no recommendation. The Senate floor then voted 24-7 to allow it to be placed on the calendar. It had a slight amendment on the Senate floor (that failed to change the problems many have with the bill). It then passed the Senate floor 23-12. This bill allows certain insurance companies to contribute money to a scholarship to be used in private schools and then get a tax credit. I am definitely for companies giving scholarships. I am also for private schools. But I have a hard time supporting this bill. It basically uses taxpayer dollars to subsidize a private school. I wouldn’t think private schools would want this either. If enough of these type bills are passed it will only be a matter of time before strings start becoming attached to them with certain mandates. No, lets keep private schools away from public funding.

SB 100 – SoDakLiberty Posts – Create a leased residential property classification.

Sen Deb Peters (R, Dist 9) and Rep Don Haggar (R, Dist 10) are the prime sponsors. This bill passed Senate Taxation 4-3. It was amended on the House floor to remove the new levy for this classification. The amended version of the bill passed. 25-8. This bill would remove the classification non-agricultural acreage and create a new property tax classification of leased residential property. I really don’t like this bill. It is an attempt to grab more property taxes. I really find it odd that I’ve heard many people talk about how hard it is to find affordable apartments, and here the legislature is trying to raise the costs of running a rental. Once the new classification is going for a few years I fully expect it will be used to create large new taxes for leased residential property.

SB 180 – SoDakLiberty Posts – Revise certain provisions regarding the production tax for wind energy facilities.

Sen Tim Rave (R, Dist 25) and Rep Roger Solum (R, Dist 5) are the prime sponsors. This bill was amended in Senate Commerce and Energy and passed that committee 7-0. It passed the Senate floor 32-2. This appears to the change the tax on new wind farms from “an annual tax of two percent of the gross receipts” to “an annual tax of .00040 dollars per kilowatt-hour of electricity produced by the wind farm”. Part of what the amendment changed was the annual tax was at .00035 in the bill, now it is .00040. This looks like a tax hike to me, but it hard to know without knowing the revenues currently being brought in compared to what the new system will bring in.

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