HOUSE BILL NO. 452

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Daily Data Tracking History



H0452...............................................by REVENUE AND TAXATION
CONTRACTS - Adds to existing law to provide an exemption, for certain
contracts entered into prior to the effective date of the increased sales
tax, for the additional one cent sales tax.
                                                                        
04/28    House intro - 1st rdg - to printing
    Rpt prt - to 2nd rdg
04/29    2nd rdg - to 3rd rdg
05/03    3rd rdg - PASSED - 62-0-8
      AYES -- Andersen(Guyon), Barraclough(Schanz), Barrett, Bauer, Bedke,
      Bell, Black, Block, Boe, Bolz, Campbell, Cannon, Collins, Crow,
      Cuddy, Deal, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
      Kulczyk, Lake, Langford, Langhorst, McGeachin, McKague, Meyer,
      Miller, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo,
      Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
      Trail, Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bieter, Bradford, Clark, Denney, Field(23),
      Martinez(Echohawk), Mitchell, Wood
    Floor Sponsor - Bolz
    Title apvd - to Senate
05/03    Senate intro - 1st rdg - to Loc Gov
    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 35-0-0
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
      Marley, McKenzie, McWilliams, Noble, Noh, Pearce(Banner), Richardson,
      Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Ingram
    Title apvd - to House
05/05    To enrol - Rpt enrol - Sp signed
    Pres signed - To Governor
05/15    Governor signed
         Session Law Chapter 381
         Effective: 04/24/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 452
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO  CODE,
  3        BY  THE ADDITION OF A NEW SECTION 63-3640, IDAHO CODE, TO PROVIDE FOR CON-
  4        TRACTS ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THE INCREASED SALES AND
  5        USE TAX; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Chapter 36, Title 63, Idaho Code, be,  and  the  same  is
  8    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  9    ignated as Section 63-3640, Idaho Code, and to read as follows:
                                                                        
 10        63-3640.  CONTRACTS ENTERED INTO BEFORE EFFECTIVE DATE OF  INCREASED  TAX.
 11    (1) Commencing May 1, 2003, and ending June 30, 2005, the purchase, use, stor-
 12    age or other consumption of tangible personal property which is otherwise sub-
 13    ject  to  the  taxes  imposed  by  this  chapter by persons defined in section
 14    63-3609(a), Idaho Code, shall be exempt  from  one  cent  (1)  of  the  taxes
 15    imposed by sections 63-3619 and 63-3621, Idaho Code, if:
 16        (a)  The  tangible  personal property is purchased, used, stored or other-
 17        wise consumed for incorporation into real property; and
 18        (b)  The tangible personal property is purchased, used, stored  or  other-
 19        wise  consumed in regard to a project performed by such person pursuant to
 20        a qualified contract; and
 21        (c)  The taxpayer claims the exemption in the manner provided  by  subsec-
 22        tion (3) of this section.
 23        (2)  As  used  in this section, the term "qualified contract" means a con-
 24    tract which:
 25        (a)  Is a written contract; and
 26        (b)  Was in effect on April 15, 2003, or was submitted for bid or  bid  in
 27        written  form on or before April 15, 2003, and subsequently became a writ-
 28        ten contract; and
 29        (c)  Was negotiated or bid based upon the sales or use tax being five per-
 30        cent (5%); and
 31        (d)  Requires the cost of the sales or use tax to be borne by the contrac-
 32        tor.
 33        (3)  A person entitled to the exemption granted in subsection (1) of  this
 34    section  may  submit  a  claim  for refund to the state tax commission for the
 35    amount of one cent (1) of the tax imposed by sections 63-3619  and   63-3621,
 36    Idaho  Code,  if  it has actually been paid by him. The claim for refund shall
 37    include:
 38        (a)  A copy of a written contract which is a qualified contract; and
 39        (b)  A detailed invoice prepared by the seller showing all items of tangi-
 40        ble personal property purchased by the claimant, the sale of which is sub-
 41        ject to the exemption granted in subsection (1) of this section; and
 42        (c)  A document signed by the purchaser certifying that the tangible  per-
 43        sonal  property shown on the invoice required by subsection (3)(b) of this
                                                                        
                                           2
                                                                        
  1        section has in fact been used by him on the project to which the qualified
  2        contract relates.
  3        (4)  Upon receipt of the claim for refund, the state tax commission  shall
  4    review  the  claim  and,  if  it  finds  it to be proper, shall pay the refund
  5    together with interest from the date that the claim  was  filed  at  the  rate
  6    established  by  section 63-3045, Idaho Code, within thirty (30) days from the
  7    date the claim was received by the commission.
  8        (5)  The use or incorporation into real property of any tangible  personal
  9    property  upon  which the exemption provided by subsection (1) of this section
 10    has been claimed pursuant to any contract  other  than  a  qualified  contract
 11    shall be a misdemeanor.
 12        (6)  In  addition  to the criminal penalties provided by subsection (5) of
 13    this section, the use or incorporation into real property of tangible personal
 14    property upon which the exemption provided by subsection (1) of  this  section
 15    has  been  claimed  pursuant to any contract which is not a qualified contract
 16    shall subject the user to a penalty of three (3) times the sales  or  use  tax
 17    otherwise  due  under this chapter to be enforced and collected as provided by
 18    sections 63-3634 and 63-3635, Idaho Code.
 19        (7)  In the case of a retailer who makes sales of tangible personal  prop-
 20    erty to any person entitled to the exemption granted in subsection (1) of this
 21    section  who  is  for  any  reason  unable to collect one cent (1) of the tax
 22    imposed by sections 63-3619 and 63-3621, Idaho Code, from the  purchaser,  the
 23    retailer shall be entitled to claim the refund otherwise available to the pur-
 24    chaser.  The  claim for refund shall be filed in the manner prescribed by sub-
 25    section (3) of this section. Nothing  in  this  subsection  shall  excuse  the
 26    retailer  from reporting sales and use taxes at the full statutory rate on all
 27    taxable sales made during the period to which his  sales  or  use  tax  return
 28    relates.  If  a refund claim is filed concurrently with the return, the refund
 29    claimed may be credited against the tax due on the return.  Any  retailer  who
 30    claims  a  refund for any taxes actually collected from the purchaser shall be
 31    subject to a penalty of three (3) times the sales or use tax refund improperly
 32    claimed to be enforced and collected  as  provided  by  sections  63-3634  and
 33    63-3635, Idaho Code.
                                                                        
 34        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 35    declared to exist, this act shall be in full force and effect on and after its
 36    passage and approval, and retroactively to April 24, 2003.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13320
The purpose of this legislation is to provide for an exemption of
the additional one percent sales tax on contracts entered into
agreement prior to May 1, 2003.
                          FISCAL IMPACT
Reduce the general fund by $6 million to $9 million


Contact
Name: Representative Bolz 
Phone: (208)332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                       H 452