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Agriculture, Rural Economies and Veterans Affairs Finance Division

THIRTEENTH MEETING

2007-2008 Regular Session - Wednesday, February 21, 2007

STATE OF MINNESOTA THIRTEENTH MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION


Committee on Agriculture, Rural Economies, and
Veterans Affairs Finance

MINUTES



Representative Al Juhnke, Chair, called the first meeting to order at 10:06AM on Wednesday, February 21, 2007 in Basement of the State Office Building.

The Committee Legislative Assistant called the roll.

Members present:


JUHNKE, Al MAGNUS, Doug
WELTI, Andy OLIN, Dave
DOTY, Al OTREMBA, Mary Ellen
FAUST, Tim PETERSON, Aaron
FINSTAD, Brad POPPE, Jeanne
HAMILTON, Rod SHIMANSKI, Ron
HANSEN, Rick
HEIDGERKEN, Bud


A quorum was present.

Representative Faust moved that the minutes of February 20, 2007 be adopted. THE MOTION PREVAILED.

Pat Dalton, House Research, Minnesota House of Representatives, presented background information on sales tax exemptions for agricultural production.

Discussion and questions followed.

HF158 (Urdahl); a bill for an act relating to sales and use taxes; exempting construction and other materials used in livestock farming operations; amending Minnesota Statutes 2006, section 297A.69, subdivisions 2, 3, 4.

Representative Finstad moved that HF 158 be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes.

Representative Urdahl presented HF 158. Discussion and questions followed.

Colbey Sullivan, House Research, Minnesota House of Representatives presented the H0158A3 amendment.

Representative Finstad moved to amend HF 158 (see attached H0158A3). Discussion and questions followed. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Chair Juhnke moved to amend HF 158, as amended, (see attached H0158A1). Discussion and questions followed. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Magnus moved to further amend HF 158, as amended, as follows:

Page 2, line 17, delete "June 30, 2007" and insert "January 1, 2007"

Page 2, line 24, delete "June 30, 2007" and insert "January 1, 2007"

Page 3, line 5, delete "June 30, 2007" and insert "January 1, 2007"

H0158A1 amendment, Page 2, line 4 delete "June 30, 2007" and insert "January 1, 2007"

THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Finstad renewed his motion that HF 158, as amended, be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes. THE MOTION PREVAILED.


HF 9 (Juhnke); a bill for an act relating to taxation; providing an income and corporate franchise tax credit for qualifying investment in dairy operations; amending Minnesota Statutes 2006, section 290.06, by adding a subdivision.

Chair Juhnke moved that HF 9 be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes.

Chair Juhnke presented HF 9.

Bob Lefebvre and Dennis Ritter, Minnesota Milk Producers Association, testified on HF 9.

Chair Juhnke moved that HF 9 be amended (see attached H0009A1). THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Chair Juhnke renewed his motion that HF 9, as amended, be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes. THE MOTION PREVAILED.


HF 101 (Demmer); a bill for an act relating to education finance; excluding the value of agricultural land from the tax base for school bonded debt levies; amending Minnesota Statutes 2006, sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 273.13, subdivision 23.

Representative Heidgerken moved that HF 101 be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes.

Representative Demmer presented HF 101. Discussion and questions followed.

Representative Heidgerken renewed his motion that HF 101, as introduced, be recommended to pass and be re-referred to the Committee on Finance with a recommended re-referral to the Committee on Taxes. THE MOTION PREVAILED.


Joe Martin, Assistant Commissioner, Department of Agriculture, presented a budget overview of the Clean Water Legacy program.

Discussion and questions followed.

Next meeting: Tuesday, February 27, 2007, 10:00AM.

The meeting was adjourned at 11:32AM.


____________________________________
Al Juhnke, Chair


____________________________________
Dana Wilson, Committee Legislative Assistant
More Info On This Meeting..

Discussion of sales tax exemptions
HF158 (Urdahl) Livestock farming operations construction materials sales tax exemption provided
HF9 (Juhnke) Dairy investment income and corporate franchise tax credit provided for qualifying investments in dairy operations
HF101 (Demmer) Agricultural land excluded from the tax base for school bonded debt levies.