HOUSE BILL NO. 469

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Bill Status



H0469...............................................by REVENUE AND TAXATION
PERSONAL PROPERTY TAX - Adds to existing law to provide that the sales and
use tax does not apply to charges for personal property tax added to the
rent for leases of tangible personal property if certain circumstances
occur.

02/06    House intro - 1st rdg - to printing
02/07    Rpt prt - to Rev/Tax
02/12    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
02/18    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest(Burgoyne), Henderson, Jaquet, Killen, King, Kren,
      Labrador, Lake, LeFavour, Loertscher, Luker, Marriott, Mathews,
      McGeachin, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick,
      Pence, Raybould, Ringo(Cooke), Roberts, Ruchti, Rusche, Sayler,
      Schaefer, Shepherd(02), Shepherd(08), Shirley, Shively, Smith(24),
      Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
      Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Smith(30)
    Floor Sponsor - Clark
    Title apvd - to Senate
02/19    Senate intro - 1st rdg - to Loc Gov
02/27    Rpt out - rec d/p - to 2nd rdg
02/28    2nd rdg - to 3rd rdg
03/04    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
      Hammond, Heinrich, Hill, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
      Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Gannon, Jorgenson
    Floor Sponsor - Hill
    Title apvd - to House
03/05    To enrol
03/06    Rpt enrol - Sp signed
03/07    Pres signed
03/10    To Governor
03/14    Governor signed
         Session Law Chapter 92
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 469

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO SALES AND USE TAX EXEMPTIONS; AMENDING CHAPTER 36, TITLE 63, IDAHO
  3        CODE, BY THE ADDITION OF A NEW SECTION 63-3622UU, IDAHO CODE,  TO  PROVIDE
  4        THAT THE SALES AND USE TAX DOES NOT APPLY TO CHARGES FOR PERSONAL PROPERTY
  5        TAX  ADDED TO THE RENT FOR LEASES OF TANGIBLE PERSONAL PROPERTY IF CERTAIN
  6        CIRCUMSTANCES OCCUR.

  7    Be It Enacted by the Legislature of the State of Idaho:

  8        SECTION 1.  That Chapter 36, Title 63, Idaho Code, be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 63-3622UU, Idaho Code, and to read as follows:

 11        63-3622UU.  PERSONAL PROPERTY TAX ON RENTALS. The taxes  imposed  by  this
 12    chapter  do  not  apply to charges for personal property tax added to the rent
 13    paid for leases of tangible personal property. This exemption applies if:
 14        (1)  The lessor separately states the charge for property tax to the  les-
 15    see; and
 16        (2)  The  amount  charged  to the lessee is not more than the property tax
 17    actually paid by the lessor; and
 18        (3)  The lease agreement is for an initial  period  of  one  (1)  year  or
 19    longer.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 17512

Current Idaho law appears to charge sales tax on personal
property tax if paid through a lease.  This legislation provides
that charges for personal property tax added to the rents paid by
a lessee of tangible personal property are not subject to sales
tax as long as the lease period is at least one year and the
property tax is separately stated.                          


                           FISCAL NOTE

The fiscal impact on the general fund is difficult to
determine with accuracy, but it is estimated that sales tax
receipts will decrease by approximately $400,000.




Contact
Name: Senator Brent Hill 
Phone: 332-1316
Senator Bart Davis
Phone: 332-1305


STATEMENT OF PURPOSE/FISCAL NOTE                         H 469