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Legislative Update 02/15/2015

2015 Legislative Session Road Funding Update: all bills attached below

Both the House (HB 1131) and Senate (SB1) versions of have been referred to House State Affairs committee, with a hearing scheduled for Wednesday, February 18.  Currently HB 1131 (the Governor’s bill) and SB 1 closely mirror each other:

·         Each increases the vehicle excise tax from 3% to 4%

·         Each increases the fuel fees (including ethanol) by 2 cents per gallon each year.

HB 1131 ends in 2030

SB 1 ends in f June 2023

·         Each increases vehicle registration fees by ten percent

·         Each increases the farm truck registration fees:

HB 1131 goes to 70% of the commercial rate in the first year, and then to 80% the next year

SB 1 goes to 70% of the commercial rate in the first year, and then to 75% the next year

·         Each allows counties to assess an additional $1.20 per thousand dollars of valuation, and the townships to assess an additional 50 cents per thousand, for roads. The additional assessment would need to be approved by a public vote.

Additional amendments that are being discussed include:

·         Implementing annual increases in the vehicle registration fee, from one to three dollars per year, based on the age of the vehicle

·         Adding a $40 annual registration fee for hybrid vehicles and an $80 fee for electric vehicles, as a substitute for the gas tax those vehicles are not paying in return for wear and tear on the highway system.

·         Allowing counties to impose a wheel tax on up to 12 wheels per vehicle.

The bills will generate over $50,000,000 for state and local highway and bridges. Additional money for local roads and bridges will be generated the counties and townships assessing for rad needs.

 

  Bill Title
HB 1018 revise the sales and use tax exemptions for farm machinery.  Passed House Taxation, Passed House Floor, Passed Senate Taxation, Passed Senate Floor, Signed by Governor 2-9
HB 1019 revise certain provisions regarding exemptions from sales and use taxation of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes.  Passed House Taxation, Passed House Floor, Passed Senate Taxation, Passed Senate Floor, Signed by Governor 2-9.
HB 1039 revise certain provisions related to the regulation of grain buyers and grain warehouses.  Passed House Ag, Passed House Floor .  Passed Senate Ag and Senate Floor.  Sent to the Governor.
HB 1040 revise the statute of frauds within the uniform commercial code with respect to the sale of pulse crops.  Passed House Ag, Passed House Floor.  Passed Senate and Senate Floor.  Sent to the Governor.
HB 1056 revise certain provisions regarding the Department of Agriculture.  Passed House Ag Amended, Passed House Floor, Passed Senate Ag and Senate Floor.  Sent to Governor.
HB 1115 increase the maximum property tax levy for the pension fund of a school district.  Sent to House Taxation. Deferred to 41st day.
HB 1131 revise certain taxes and fees to fund improvements to public roads and bridges in South Dakota.  Referred to  House Transportation.  Amended 4 times and deffered.
SB 1 finance improvements on the public highways and bridges by establishing or increasing the motor vehicle excise tax, taxes on fuel, motor vehicle registration fees, and wheel taxes, to provide for the distribution of certain revenue, and to establish certain state and local planning and reporting requirements concerning the condition of public highways and bridges.  Referred to Senate State Affairs was amended and passed.  Passed Senate Floor .  Referred to House State Affairs.
SB 2 provide for the establishment of river basin natural resource districts and to repeal certain provisions regarding county drainage management.  Referred to Senate Ag, amended and scheduled for hearing.
SB 3 provide for mediation of certain drainage disputes. Referred to Senate Ag and scheduled for hearing.
SB 4 make an appropriation for research concerning the administrative and financial impact of actual use on agricultural land assessments and to declare an emergency.  Referred to Senate Ag. Passed Senate Ag referred to Senate Appropriations, scheduled for hearing.
SB 5 revise certain provisions concerning the assessment and taxation of real property.  Passed Senate Taxation, passed Senate Floor.  Referred to House Taxation.
SB 6 revise certain provisions concerning the pension and capital outlay tax levies for school districts.  Passed Senate Taxation, Passed Senate Floor.  Withdrawn at the request of the Prime sponsor.
SB 7 revise certain provisions concerning the school district pension fund and capital outlay fund tax levies and to provide property tax opt-out procedures for the capital outlay levy.  Referred tp Senate State Affairs, withdrawn at the request of the prime sponsor.
SB 44 revise the criteria for classifying property as agricultural land and to provide for additional requirements for small agricultural acreages and timber land to be classified as agricultural land.  Referred to Senate Taxation, Deferred to the 41st day.
SB 46 make an appropriation of other fund expenditure authority to the Department of Agriculture for the construction of the Nordby Exhibit Hall at the South Dakota State Fair and to declare an emergency.  Referred to Senate Appropriations, Passed Seante Floor. Passed House Appropriations.
SB 55 revise the General Appropriations Act for fiscal year 2015.  Referred to Senate Appropriations.
SB 79 revise certain provisions concerning the manner in which county wheel taxes are imposed.  Referred to Senate Transportation, Deferred to the 41st legislative day.
SB 83 authorize a board of county commissioners to designate certain section line roads and secondary roads as no maintenance and to revise certain provisions to vacate, change, or locate a highway by a board of county commissioners.  Withdrawn at the request of the prime sponsor.
SB 102 revise certain provisions that dedicate property tax revenue for the financing of tax incremental districts.  Referred to Senate Taxation. Deferred to 41st Day.
SB 103 authorize townships to levy a capital improvement property tax for secondary roads, bridges, and culverts.  Passed Senate State Affairs, Passed Senate floor, Passed House appropriations , Passed House Floor.  Sent to the Governor.
SB 134 Hog House vehicle for State Aid to Education : Referred to Senate State Affairs. accommodate legislation to revise the capital outlay property tax levy for school districts.  Referred to Senate State Affairs.
SB 148 increase the tax on certain motor fuels to finance improvements on the public highways and bridges.  Referred to Senate State Affairs.