HOUSE BILL NO. 378

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H0378...............................................by REVENUE AND TAXATION
TAXATION - Amends and adds to existing law to provide that certain tangible
personal property is exempt from taxation; to provide for remittance of
income tax moneys to replace property taxes on certain personal property
exempt from taxation; and to provide a formula.
                                                                        
03/26    House intro - 1st rdg - to printing
    Rpt prt - rls susp - PASSED - 61-6-3
      AYES -- Barraclough, Barrett, Bedke, Bell, Black, Bolz, Bradford,
      Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Hansen, Harwood, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
      McKague, Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy,
      Raybould, Ridinger, Roberts, Sali, Schaefer, Sellman, Shepherd,
      Smith, Smylie, Stevenson, Stone, Tilman, Trail, Wood, Young, Mr.
      Speaker
      NAYS -- Bieter, Boe, Chase, Henbest(Farley), Marley, Robison
      Absent and excused -- Meyer, Pischner, Wheeler
    Floor Sponsor -- Crow
    Title apvd - to Senate
03/28    Senate intro - 1st rdg - to Loc Gov
    Rpt out - rec d/p to 2nd rdg
    Rls susp - PASSED - 32-2-1
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Frasure, Geddes,
      Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lodge, Noh,
      Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Williams,
      NAYS -- Dunklin, Whitworth
      Absent and excused -- Lee
    Floor Sponsors - Thorne, Hawkins
    Title apvd - to House
03/29    To enrol - rpt enrol - Sp signed - Pres signed
03/30    To Governor
04/09    Governor signed
         Session Law Chapter 356
         Effective: 01/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 378
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY  THE  ADDI-
  3        TION OF A NEW SECTION 63-602EE, IDAHO CODE, TO PROVIDE THAT CERTAIN TANGI-
  4        BLE  PERSONAL  PROPERTY IS EXEMPT FROM TAXATION; AMENDING SECTION 63-3067,
  5        IDAHO CODE, TO PROVIDE FOR REMITTANCE OF  INCOME  TAX  MONEYS  TO  REPLACE
  6        PROPERTY  TAXES ON CERTAIN PERSONAL PROPERTY EXEMPT FROM TAXATION, TO PRO-
  7        VIDE A FORMULA AND TO MAKE A TECHNICAL CORRECTION; DECLARING AN  EMERGENCY
  8        AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
 11    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 12    ignated as Section 63-602EE, Idaho Code, and to read as follows:
                                                                        
 13        63-602EE.  PROPERTY  EXEMPT  FROM  TAXATION  --  CERTAIN TANGIBLE PERSONAL
 14    PROPERTY. The following property is exempt from  taxation:  class  2  property
 15    that  is agricultural machinery and equipment and exclusively used in agricul-
 16    ture during the immediately preceding tax year. For purposes of this section:
 17        (1)  "Agricultural  machinery  and equipment" shall mean any machinery and
 18    equipment that is used in:
 19        (a)  Production of field crops including, but not limited to, grains, feed
 20        crops, fruits and vegetables; or
 21        (b)  The grazing, feeding or raising of  livestock,  fur-bearing  animals,
 22        fish,  fowl  and  bees  to  be sold or used as part of a net profit-making
 23        agricultural enterprise or dairy.
 24        (2)  Buildings shall not be considered to be  agricultural  machinery  and
 25    equipment.
                                                                        
 26        SECTION  2.  That  Section 63-3067, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        63-3067.  REVENUE RECEIVED -- STATE REFUND ACCOUNT. (1) A sum equal to the
 29    amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
 30    percent (50%) to the public school income fund to be  utilized  to  facilitate
 31    and  provide  substance  abuse programs in the public school system, and fifty
 32    percent (50%) shall be distributed to the counties to be utilized  for  county
 33    juvenile probation services. These funds shall be distributed quarterly to the
 34    counties  based  upon the percentage the population of the county bears to the
 35    population of the state as a whole.
 36        (2)  All moneys except as provided in subsection (1) of this section,  and
 37    except  as hereinafter provided, received by the state of Idaho under this act
 38    shall be deposited by the state tax commission, as received by  it,  with  the
 39    state  treasurer  and  shall  be  placed  in  and become a part of the general
 40    account under the custody of the state treasurer. Providing however,  that  an
 41    amount  equal  to  twenty percent (20%) of the amount deposited with the state
                                                                        
                                           2
                                                                        
  1    treasurer shall be placed in the "state refund account" which is  hereby  cre-
  2    ated for the purpose of repaying overpayments, for the purpose of remitting to
  3    counties  and taxing districts for personal property exempt from taxation pur-
  4    suant to section 63-602EE, Idaho Code, as provided in subsection (3)  of  this
  5    section, for the purpose of depositing in the trust accounts specified in sec-
  6    tion  63-3067A,  Idaho  Code, such amounts as may be designated by individuals
  7    for the purpose of depositing in the Idaho ag  in  the  classroom  account  an
  8    amount  as  may  be  designated  by the individual receiving a refund for such
  9    overpayment, and for the purpose of paying any other erroneous receipts  ille-
 10    gally  assessed  or collected, penalties collected without authority and taxes
 11    and licenses unjustly assessed, collected or which are  excessive  in  amount.
 12    Whenever  necessary  for  the purpose of making prompt payment of refunds, the
 13    board of examiners, upon request from the  state  tax  commission,  and  after
 14    review, may authorize the state tax commission to transfer any additional spe-
 15    cific  amount from income tax collections to the "state refund account." There
 16    is appropriated out of the state refund account so much thereof as may be nec-
 17    essary for the payment of the refunds herein provided. Claims for, and payment
 18    of refunds under the provisions of this section shall be made in the same man-
 19    ner as other claims against the state of Idaho.
 20        (3)  The state tax commission shall calculate the amount that each  county
 21    assessed  in  taxes  in tax year 2000 on property that is exempt from taxation
 22    pursuant to section 63-602EE, Idaho Code, and shall remit to the county  trea-
 23    surer  for  distribution to each taxing district in the county one hundred six
 24    percent (106%) of the amount calculated as follows:
 25        The county commissioners in each county shall certify  to  the  state  tax
 26    commission  by July 1, 2001, the year 2000 tax charge, applicable to the prop-
 27    erty exempt from taxation pursuant to section 63-602EE, Idaho  Code,  provided
 28    that  such  property was categorized in year 2000 as farm machinery, tools and
 29    equipment pursuant to rules of the state tax commission, for  the  portion  of
 30    each  taxing  district  or unit within the county. For nonschool districts the
 31    state tax commission shall distribute one-fourth (1/4) of this  amount  certi-
 32    fied  quarterly to each county beginning in October 2001. For school districts
 33    the state tax commission shall distribute one-fourth (1/4) of the amount  cer-
 34    tified  quarterly  to each school district beginning in October 2001. For non-
 35    school districts, the  county  auditor  shall  distribute  to  each   district
 36    within  thirty  (30) calendar days from receipt of moneys from the tax commis-
 37    sion. Moneys received by each taxing district for replacement  shall  be  uti-
 38    lized in the same manner and in the same proportions as revenues from property
 39    taxation. The moneys remitted to the county treasurer for replacement of prop-
 40    erty  exempt  from  taxation  pursuant to section 63-602EE, Idaho Code, may be
 41    considered by the counties and other taxing districts and budgeted at the same
 42    time, in the same manner and in the same year as  revenues  from  taxation  on
 43    personal property which these moneys replace. If taxing districts are consoli-
 44    dated, the resulting district is entitled to an amount equal to the sum of the
 45    amounts which were received in the last calendar quarter by each district pur-
 46    suant  to  this subsection prior to the consolidation. If a taxing district is
 47    dissolved or disincorporated, the state tax commission shall continuously dis-
 48    tribute to the board of county commissioners  an  amount  equal  to  the  last
 49    quarter's  distribution prior to dissolution or disincorporation. The board of
 50    county commissioners shall determine any redistribution of moneys so received.
 51    If a taxing district annexes territory, the distribution  of  moneys  received
 52    pursuant to this subsection shall be unaffected. Taxing districts formed after
 53    January  1,  2001,  are not entitled to a payment under the provisions of this
 54    subsection. School districts shall receive an amount determined by multiplying
 55    the sum of the year 2000 school district levy plus .001 times the market value
                                                                        
                                           3
                                                                        
  1    on December 31, 2000, in the district of the  property  exempt  from  taxation
  2    pursuant  to section 63-602EE, Idaho Code. For purposes of the limitation pro-
  3    vided by section 63-802, Idaho Code, moneys received pursuant to this  subsec-
  4    tion as property tax replacement for property exempt from taxation pursuant to
  5    section 63-602EE, Idaho Code, shall be treated as property tax revenues.
  6        (4)  Any  unencumbered  balance  remaining  in the state refund account on
  7    June 30 of each and every year in excess of the sum of one million  five  hun-
  8    dred thousand dollars ($1,500,000) shall be transferred to the general account
  9    fund  and the state controller is hereby authorized and directed on such dates
 10    to make such transfers unless the board of examiners, which is  hereby  autho-
 11    rized to do so, changes the date of transfer or sum to be transferred.
                                                                        
 12        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
 13    declared to exist, this act shall be in full force and  effect  on  and  after
 14    passage and approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact



REVISED           REVISED           REVISED        REVISED

                      STATEMENT OF PURPOSE
                                
                            RS11300

Exempt tangible personal property used for agricultural purposes.

                         FISCAL IMPACT

Reduces the General Account by $12.4 million.




Contact
Name: Rep. Dolores Crow
      Rep. Mike Moyle
Phone: 332-1000



STATEMENT OF PURPOSE/FISCAL NOTE             H 37