81st Legislative Session _ 2006

Conference Committee: HB 1128
Monday, February 27, 2006

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Peterson (Jim)
P    Kooistra
P    Knudson, Chair
P    Sigdestad
P    Nelson
P    Turbiville, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Turbiville, Chair

         HB 1128: revise certain provisions concerning the valuation of agricultural land for ad valorem taxation.

Presented By:    Michael Kenyon, Department of Revenue and Regulation (Handout 1)

Commenatators: Senator Lintz; Charlie Flowers, SD Coalition of Schools; Representative Dennert; Senator McNenny

MOTION:     AMEND HB 1128

1128ya
     On page 1 of the Senate Taxation Committee engrossed bill, remove the overstrikes from lines 9 to 11 , inclusive.

     On page 2 , remove the overstrikes from line 1 .

Moved by:    Nelson
Second by:    Sigdestad


Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1128

1128fd
     On page 1 of the Senate Taxation Committee engrossed bill, delete lines 5 to 11 , inclusive, and insert:

"      10-6-33.25.   For the purposes of § 10-6-33.24, the agricultural income value shall be determined using capitalized annual cash rent. The annual cash rent is the annual cash rent, excluding the per acre tax on agricultural land, determined through an analysis of arms-length rental agreements collected within the county in the three years prior to the year for which the agricultural income value is being determined. The agricultural income value of cropland shall be based on average rents over a three-year period for cropland under natural conditions. The agricultural income value of noncropland shall be based on average rents over a three-year period for noncropland under natural conditions. However, no arms-length rental agreements for irrigated land may be used to determine the annual cash rent pursuant to this section. The annual cash rent shall be capitalized at seven and three-fourths six and one-fifth percent.

     The secretary of revenue and regulation may enter into a contract for the collection of cash rent information by county. Cash rent information shall be adjusted by soil survey statistics, if available, and pursuant to § 10-6-33.26.

     Section 2. This Act is repealed on July 1, 2007.".


     On page 2 , delete lines 1 to 6 , inclusive.

Moved by:    Knudson
Second by:    Peterson (Jim)
Action:    Prevailed by roll call vote.(4-2-0-0)

Voting Yes:    Peterson (Jim), Knudson, Sigdestad, Turbiville

Voting No:    Kooistra, Nelson

MOTION:     DO PASS HB 1128 AS AMENDED

Moved by:    Knudson
Second by:    Peterson (Jim)
Action:    Prevailed by roll call vote.(4-2-0-0)


Voting Yes:    Peterson (Jim), Knudson, Sigdestad, Turbiville

Voting No:    Kooistra, Nelson

MOTION:     ADJOURN

Moved by:    Kooistra
Second by:    Knudson
Action:    Prevailed by voice vote.

Carolyn Riter

____________________________

Committee Secretary
Charles M. Turbiville, House Chair

____________________________

Dave Knudson, Senate Chair


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