January 10, 2003
January 13, 2003
January 15, 2003
January 17, 2003
January 20, 2003
January 22, 2003
January 24, 2003
January 27, 2003
January 29, 2003
January 31, 2003
February 3, 2003
February 5, 2003
February 10, 2003
February 12, 2003
February 17, 2003
February 24, 2003
February 26, 2003
March 3, 2003
March 5, 2003
March 10, 2003
March 17, 2003
March 19, 2003
March 24, 2003
March 31, 2003
April 2, 2003
April 7, 2003
April 8, 2003
April 21, 2003
DATE: | January 10, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Members of the committee were welcomed. Hans Amen, Page to the committee, was introduced. Bibiana Nertney, Secretary to the committee, was introduced. |
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Chairman Bunderson reviewed the Idaho State Income Tax and Sales Tax exemptions. He requested that each member review the exemptions and identify those that should have a public hearing. |
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Chairman Bunderson reviewed his comments and suggestions to Governor Kempthorne’s Blue Ribbon Task Force. These comments are on file in the secretary’s office. |
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Chairman Bunderson reminded the committee of the National Conference of State Legislatures briefing on streamlined sales and use tax to be held Monday, January 13th in the Gold Room. He requested the whole committee attend. |
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Chairman Bunderson reviewed the letter that he sent to Ken Harward, Executive Director of the Association of Idaho Cities, stating his concern on the quality of cities’ internal controls system, adequacy of state law and adherence to state law by city officials. He has requested that Mr. Harward poll his membership to determine if Idaho code should be modified to specifically reference internal controls. Mr. Harward will be invited to present to the committee at a later date. Discussion was held on the legislature’s authority over interpreting code |
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Chairman Bunderson reviewed the highlights of President George W. Bush’s Economic Stimulus Package. The committee will pay attention to what happens in Washington, D.C. and how it may affect Idaho. |
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Vice Chairman Hill discussed what Administrative Rules the committee has been assigned to review. Assignments to review certain rules were made to the following members: Senators Hill and Sweet Income Tax Administrative Rules Senators Ingram and Werk Sales and Use Tax Administrative Rules Senators McKenzie and Malepeai Property Tax Administrative Rules Senators Gannon and Compton Property Tax Administrative Rules (35-0103-0205) Senators Ingram and Werk County Option Kitchen and Table Wine Tax Admin. Rules Tax Commission Administration and Enforcement Rules Karen Gustafson with the Department of Administration, Office of Administrative Rules, Ted Spangler with the Idaho Tax Commission referred to some rules that |
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Chairman Bunderson stated that the committee will invite the Governor’s office to present his tax plan to the committee. When bills come from the House the committee will be informed. |
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Meeting adjourned at 3:58 p.m. |
DATE: | January 13, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:30 p.m. A silent roll call was taken. Senator Compton moved the minutes of January 10 be approved as written. Senator Ingram seconded the motion. By unanimous voice vote the minutes were approved. |
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Chairman Bunderson reviewed the Attorney General’s opinion letter on the constitution and where bills that increase revenue must originate. The constitution deals with the origin and amendment of bills and provides that bills may originate in either House, but may be amended or rejected in the other, except that bills for raising revenue shall originate in the House of Representatives. It is the Attorney General’s opinion 99-2 that bills providing tax deductions and exemptions as well as bills repealing tax exemptions must also originate in the House of Representatives. |
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Chairman Bunderson reported that when the Association of Idaho Cities has completed their poll of membership they will report to this committee on the adequacy of state law referring to cities. He has also asked the Association of Idaho Counties to conduct a similar review with their members and they will report to this committee as well. |
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Vice Chairman Hill introduced Janice Boyd, Tax Policy Specialist with the Idaho State Tax Commission to review Income Tax Administrative Rules. |
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Janice Boyd | INCOME TAX ADMINISTRATIVE RULES
35.01.01 (Details of each presentation are not included on these two pages. A copy |
Rule 035 relating to trusts had discussion on federal law relating to estate taxes and any consequences of federal action to Idaho. Dan John, with the Idaho State Tax Commission explained that congress has eliminated federal estate tax over a ten-year period. Idaho estate tax is known as the death tax credit. A percentage goes to the federal government. Idaho will lose approximately 12-14 million dollars when the death tax expires in 6-7 years. |
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Rule 130 relating to deductions of certain retirement benefits had discussion relating to the definition of “disabled individuals.” This definition is described in Idaho code. |
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Rule 190 relating to Idaho Medical Savings Accounts had discussion on how many people use this type of account. The rule change is to make it simpler in the hope that more people will use it. |
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Rule 254 relating to nonresident and part-year individuals and subtractions allowed in computing Idaho adjusted income had a discussion on who qualifies as an American Indian. The Tax Commission looks to the federal Bureau of Indian Affairs for the definition. Tribal members are exempt from state income tax earned while working on the reservation only. All off reservation income is state taxable. |
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Rule 745 relating to credit for qualifying new employees in a revenue producing enterprise had discussion on what the credit is and who qualifies. Only employees of a revenue producing enterprise which means an Idaho business that begins with a natural resource and produces, assembles, fabricates or processes a value-added product would qualify. |
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Motion | Senator Compton moved for approval of docket 35-0101-0201. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
ADMINISTRATION RULES
35-0201 |
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Janice Boyd | Janice reviewed changes in rules 310, 400, and 704. |
Motion | Senator Gannon moved for approval of docket 35-0201-0201. Senator Compton seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Senator Hill thanked Janice and the other members of the Tax Commission for their presentation. He asked that Alan Dornfest present on the property tax administrative rules on Wednesday, January 15. The committee will finish rules’ review on Friday, January 17. |
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Meeting adjourned at 4:50 p.m. |
DATE: | January 15, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Compton moved that the minutes of January 13 be approved as written. Senator Werk seconded the motion. By unanimous voice vote the minutes were approved. |
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Vice Chairman Hill introduced Alan Dornfest, Tax Policy Specialist Supervisor with the Idaho State Tax Commission to present property tax rules. |
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Alan Dornfest | Mr. Dornfest explained to the committee that his department acts as an oversight committee to the counties. They provide technical assistance to counties and act as a sounding board to help counties do business in a uniform manner. They help counties interpret laws and provide guidance to county assessors. |
PROPERTY TAX ADMINISTRATIVE RULES
35-0103-0201 35-0103-0202 35-0103-0203 35-0103-0204 35-0103-0205 |
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(Details of each presentation are not included on these two pages. A copy of the rules and synopsis is included with the permanent set of minutes) |
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Rule 635-docket 35-0103-0202 relating to partial exemption for parcels of land in a rural home site development plat had discussion on it being a new rule to provide clarification of eligibility for the speculative homesite exemption. The phrase “continue to be eligible” means that the parcel must have been eligible for the speculative value exemption during the year immediately preceding the first year of eligibility for the speculative home site exemption. The phrase “improvements are being built” is defined to mean structures and not associated site improvements. A question was raised as to when property tax on a new home begins and Vice Chairman Hill indicated that the House will accept this rule and |
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Rule 316-docket 35-0103-0203 relating to compliance of continuing valuation program is a new rule to specify procedures for compliance of counties in appraising or reappraising property every five years. Counties must appraise 20% of all property per year with total completion in five years. Legislation may come up this year that offers counties flexibility in the |
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A question of how technology will aide auditors was discussed. Technology will improve the quality of information gathered, but physical leg work is still a necessary task in appraisals. |
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Rule 020-docket 35-0103-0205 relating to the value of recreation vehicles for annual registration and taxation of unregistered recreational vehicles was amended to provide tables which incorporate depreciation schedules. Discussion was held on how this would lower fees to owners as well as income to the Department of Parks and Recreation. It won’t go into effect until 2004 to allow Parks and Recreation to re-budget. Depreciation values were determined using NADA guides. |
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Motion | Senator Compton moved for approval of dockets
35-0103-0201 35-0103-0202 35-0103-0203 35-0103-0204 35-0103-0205 Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Chairman Bunderson reviewed next weeks meeting schedule.
Monday-Brian Whitlock and Mike Ferguson with the Governor’s office will Wednesday-Wells Fargo Bank will present their economic forecast, and Bill Von Tagen with the Attorney General’s office will brief the Friday- Nancy Merrill and Mike Mooney, members of the Governor’s Blue Chairman Bunderson reminded the committee to review the tax |
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Ted Spangler | Mr. Spangler explained the three step process in joining other states in a streamlined sales tax program. A draft has been established by the Tax Commission to join the project, become an implementing state and make the changes to the sales tax law that conform to the agreement. Draft legislation has been prepared to accomplish step one and two. Part of this legislation directs the Tax Commission to prepare the changes in sales tax to conform to the agreement. |
Meeting adjourned at 4:45 p.m. |
DATE: | January 17, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Compton, Werk, Malepeai |
MEMBERS ABSENT/EXCUSED: |
Senator Gannon excused |
Chairman Bunderson called the meeting to order at 3:05 p.m. A silent roll call was taken. Senator McKenzie moved that the minutes of January 15 be approved as written. Senator Hill seconded the motion. By unanimous voice vote the minutes were approved. |
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Vice Chairman Hill introduced Jim Husted, Tax Policy Specialist with the Idaho State Tax Commission. |
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Jim Husted | Sales Tax Administrative Rules
35-0102-0201 (Details of each presentation are not included on these two pages. A copy |
Rule 98-docket 35-0102-0201 relating to foreign diplomats had discussion on foreign diplomats being exempted from sales taxes by federal treaties. United States diplomats receive tax exemptions and we reciprocate with similar exemptions. The rule updates the new type of card diplomats carry. |
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Rule 133-35-0102-0202 relating to radio and broadcast equipment is a new rule clarifying that businesses that produce and broadcast either television or radio programs can qualify for an exemption. It clarifies that cable television companies do not qualify for the exemption. The intent of the statute enacted in 1975 was clearly to create this exemption even though the statute doesn’t directly say this. The exemption has been granted since the statute became effective. |
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Senator Werk questioned the policy of state agencies writing rules on the intent of what the statute says rather than on what the statute actually says. Discussion was held that rules do have the force and effect of law and it was clearly the intent of this statute to grant an exemption. |
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Larry Benton | Mr. Benton representing the Idaho State Broadcasters offered a history on this statute. ISBA brought this to the legislature in 1975 and have been granted this exemption since. Recently the question on whether cable companies qualified for the exemption came up and the tax commission wanted to clarify the exemption. The Broadcasters would like to see this rule accepted. |
Senator Werk | Requested unanimous consent to hold decision on this rule (docket 35-0102-0202) until January 24 for his further study. There was no objection from the committee. |
Motion | Senator Compton moved for approval of docket 35-0102-0201. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
County Option Kitchen and Table Wine Administrative Rules
35-0109-0201 |
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Motion | Senator McKenzie moved for approval of docket 35-0109-0201. Senator Sweet seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Cigarette and Tobacco Tax Administrative Rules
35-0110-0201 |
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Motion | Senator Werk moved for approval of docket 35-0110-0201. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Beer Tax Administrative Rules
35-0112-0201 |
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Motion | Senator Werk moved to approve docket 35-0112-0201. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Chairman Bunderson reminded the committee that on Monday the committee will hear from Brian Whitlock and Mike Ferguson with the Governor’s office on the Governor’s tax package as well as begin to review tax exemptions with Dan John of the Idaho State Tax Commission. Randy Nelson with the Idaho State Taxpayer’s Association warned the committee that doing away with some tax exemptions could put Idaho at a disadvantage with economic development. |
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Senator Ingram asked the committee how they liked the new set up of the meeting room. The change was met with positive comments. |
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Meeting was adjourned at 4:10 p.m. |
DATE: | January 20, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Hill moved the minutes of January 17 be approved as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
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RS 12587 | Senator Compton presented RS 12587 relating to the assessment of real and personal property; amending section 63-314 Idaho code, to specify a timeline for the appraisal of all taxable property in a county. By law assessors are to appraise all property in a county every five years. The law states that 20% of the property must be appraised every year with all property appraised in five years. In large counties with diverse kinds of properties to appraise this 20% per year can be difficult. This legislation gives the assessors latitude to appraise as little as 15% per year as long as 100% is appraised in five years. |
Motion | Senator Hill moved to send RS 12587 to print. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote RS 12587 will be printed. |
Brian Whitlock | Chairman Bunderson introduced Brian Whitlock the Governor’s new Chief of Staff to review the Governor’s Tax Package. Mr. Whitlock reviewed a hand out on Idaho’s general fund revenue and expenditure history annual % changes since 1991. Revenue grew an average of 7.5% per year and expenditures grew at a 7.7% rate. Fiscal Year 2002 had Idaho’s revenue line dip below 0% by more than 14%. The budget for FY 2003 also dipped below the 0% line. Mr. Whitlock showed the committee a graph of base general fund revenue |
Mr. Whitlock reviewed charts on FY 2003 and 2004 fund recommendations with the Governor’s recommended tax increase and without an increase. With the increase of sales tax of 6.5% effective May 1, 2003 FY 2003 would show an ending balance of zero (0). FY 2004 would include the raise in cigarette taxes to 62 cents per pack and allow several funds (refund fund for tax exemption, budget stabilization fund, permanent building fund, and the millennium fund) to receive money and finish the year with a $937,300 balance. Without the sales tax and cigarette tax increase, FY 2004 would finish with a <$104,880,700> loss. No tax increase equates to a 5.5% cut in budgets across the board. Raising the sales tax to 6.5% brings the sales tax more equal to the |
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Discussion was held on how the Governor chose 62 cents per pack to raise the cigarette tax. The national average is 62 cents per pack and this would bring Idaho up to the national average. The cigarette tax in Idaho is lower than Oregon, Washington, and Utah, but higher than Wyoming, Montana and Nevada or on Indian reservations. Elasticity of this tax has been built into the formula. Elasticity equals people who quit smoking or buy cigarettes elsewhere. |
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Mr. Whitlock answered questions regarding studies into other types of ways to increase revenues or further cut spending. He emphasized the immediate need for cash and the increase in sales tax starting in May 2003 would help meet that need. Discussion with national experts showed Idaho with a solid tax system. The experts recommended looking at taxing services and developing a committee that would take multiple years to review tax exemptions and quarterly collection of taxes. |
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Mr. Whitlock was questioned on state employee bonuses being given during these economic hard times. He explained that in FY 2001 the state had an excess and merit increases were given in FY 2002 before the economic downturn. From July 1, 2002 until today only one bonus has been given. Bonuses are not being given at this time. |
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Dan John | Mr. John with the Idaho State Tax Commission began a review of some of the state’s tax exemptions. Mr. John reviewed the three types of exemptions in Idaho. There are A. Lottery and parimutuel ticket sales are exempt as a service. Any B. A non tribal member who is working and living on a reservation pays Mr. John explained that there is an Idaho statute that says sales and use Chairman Bunderson asked that if he was a tribal organization could he Chairman Bunderson asked if he purchased an automobile from a C. Mr. John indicated that the issue of fuel tax on indian reservations is |
D. The exemption to INEEL Research and Development purchases has been granted since 1967 and is an exemption for products used in the course of research. |
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Being late in the day, Chairman Bunderson invited Dan John back to the Wednesday, January 22nd meeting. |
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Meeting adjourned at 5:15 p.m. |
DATE: | January 22, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator Compton excused |
Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Hill moved that the minutes of January 20 be approved as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
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Chairman Bunderson introduced Kelly Matthews an economist from Utah with Wells Fargo Bank. Mr. Matthews started his presentation by sharing with the committee that there are a number of states experiencing a 24-25% deficit. Idaho is not among those states. Mr. Matthews presented the committee with four key points important to Idaho. 1. The Idaho and national economy will gradually begin to grow this year. He 2. The growth will not be rapid enough to hold the state budget flat. Idaho will 3. Areas that will prosper will have strong high tech businesses. These high 4. States must watch their balance sheet. Idaho has used up the one time Mr. Matthews reported that the agriculture industry may not be a growth segment Mr. Matthews felt that some sort of tax revenue producing action would be an |
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Chairman Bunderson introduced Keith Johnson, the Idaho State Controller, to review the duties of his office and how that office interacts with cities. Mr. Johnson handed out a letter reviewing these duties (a copy of this letter is If a city or municipality requests the assistance of the Controller’s office the |
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Chairman Bunderson introduced Bill Von Tagen Deputy Attorney General who explained to the committee that all bills raising revenue must originate in the House of Representatives. Mr. Von Tagen explained that even bills lowering taxes are considered raising revenue but in a smaller amount. He wants to take a cautious approach. Once a bill originates in the House, the Senate does have amending rights. |
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Chairman Bunderson introduced Dan John with the Idaho State Tax Commission to continue the review of tax exemptions. Vending Machine Sales carry one exemption. There is no sales tax imposed Magazine subscriptions collect sales tax if they are based in Idaho. If not in Professional Services are not taxed by definition in Idaho statute. The statute Motor Vehicles, bought in Idaho, and taken out of state to use have an Production equipment and supplies exemption is for equipments that produce a Utility sales have carried an exemption since 1965. Mr. John reported that some Motor fuels since 1965 have been exempted. Idaho constitution provides that Charitable organizations are not tax exempt unless specifically named in statute. |
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Meeting adjourned at 4:40 p.m. | |
Dear Senator Bunderson, As per your request, the following is background information pertaining to
1. Historical/ Chronological – Work began in Summer 2002 to identify, analyze, and – A bill (HB55) was drafted in November of 2002 and pre-filed with the Legislative Services Office. This piece of – Subsequent to pre-filing HB 55, it became apparent that – After the pre-filing of HB55, the State Controller was asked – The question isDo the citizens of a given city, as Idaho – It appears that statutorily and through case history that it 2. Key Points- – It is not the intention of the Idaho State Controller to – The language in both Idaho State Code and Idaho – Although it might be politically expedient to avoid this – It appears to the Idaho State Controller, and to others we – The Idaho State Controller has subpoena authority, and is Please let me know if I can be of any further assistance. Sincerely, Keith Johnson Idaho State Controller
KJ/dg/tkl |
DATE: | January 24, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator McKenzie moved that the minutes of January 22 be approved as written. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
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Chairman Bunderson reported on his meeting with Representative Dolores Crow, chairman of the House Revenue and Taxation committee on how her committee and this committee can work together. It was agreed that both committees will maintain excellent communications. This committee working on crafting tax legislation will work closely with Representative Crow. |
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Senator Compton reported on a letter that was received from an assessor that questioned confusing language relating to estimated taxes for an upcoming year. After review, Senator Compton felt that this committee did not need to craft legislation at this time. |
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Vote | Rule 133-Docket 35-0102-0202 motion was brought to the table. By unanimous voice vote docket 35-0102-0202 was approved. Senator Hill will inform the Pro Tem that our review of rules is completed. |
Chairman Bunderson introduced Nancy Merrill, Mayor of Eagle and chairman of the Public Safety, Transportation and Natural Resources Committee of the Blue Ribbon Task Force. Ms. Merrill informed the committee that the Blue Ribbon Task Force is a 1. Explore the expansion of community-based prevention programs for 2. Explore creative, community-based sentencing alternatives for 3. Ask to Governor to appoint a group of policy makers to work with the 4. Appoint an interim or Ad Hoc Legislative Committee to explore 5. Examine the need for a separate facility, specialized treatment, and 6. Examine the need for specialized treatment, dedicated funding, and 7. Examine the need for separate facilities, specialized treatment, and 8. Examine the need for separate facilities, specialized treatment, and 9. Support the transfer of the Threatened and Endangered Wildflower 10. Support development of online pesticide licensing by the 11. Support a request that the Idaho Legislature adopt a concurrent |
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Chairman Bunderson introduced Randy Nelson, Executive Director of the Idaho State Taxpayers Association and member of the Revenue and Economic Development Committee of the Blue Ribbon Task Force. Mr. Nelson reviewed the recommendations from that committee. 1. Implement an estimated tax payment system for the State of Idaho 2. Increase the number of tax personnel at the Idaho State Tax 3. Modify the Investment Tax Credit to make it transferable to other 4. Increase cigarette tax by 20 cents per pack and direct increased 5. Support the effort of the Streamlined Sales Tax Project to collect tax 6. Implement an Accounts Receivable Offset program for those 7. Increase the sales tax rate by 1%, effective June 1, 2003 and sunset |
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Meeting adjourned at 4:45 p.m. |
DATE: | January 27, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Compton moved that the minutes of January 24 be approved as written. Senator Werk seconded the motion. By unanimous voice vote the minutes were approved. |
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RS 12550 | Senator Ingram presented RS 12550 which would raise the fees paid to sewer and water district board members from $50 per meeting to up to $100 per meeting. These funds are not general fund dollars but dedicated funds from the districts. Discussion was held as to the rationale of the state being involved in local decisions. The legislature created these districts and the fees were attached as mandates. Senator Ingram reported that it is increasingly hard to recruit members to sit on these boards. |
Motion | Senator Werk moved to send RS12550 to print. Senator Hill seconded the motion. |
Vote | By unanimous voice vote RS12550 will be sent to print. |
HB 74 | Ted Spangler with the Idaho Tax Commission presented HB 74 relating to the sales and use taxes amending section 63-3627, Idaho code. |
Motion | Senator Hill moved to send HB 74 to the senate floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote HB 74 was approved. |
HB 75 | Ted Spangler with the Idaho Tax Commission presented HB 75 relating to property taxes amending sections 63-301A, 63-602A, 63-602C, and 63-803 Idaho code. |
Motion | Senator Compton moved to send HB 75 to the senate floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote HB 75 was approved. |
HB 77 | Ted Spangler with the Idaho Tax Commission presented HB 77 relating to sales and use taxes amending sections 63-3620, 63-3622R, and 63-3622GG, Idaho code. |
Motion | Senator Gannon moved to send HB 77 to the senate floor with a “Do Pass” recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote HB 77 was approved. |
HB 79 | Dan John with the Idaho Tax commission presented HB 79 relating to corrections to the Idaho income tax act amending sections 63-3022, 63-3022P, 63-63-3024, 63-3029E, 63-3029F and 63-3042, Idaho code. |
Motion | Senator McKenzie moved to send HB 79 to the senate floor with a “Do Pass” recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote HB 79 was approved. |
HB 80 | Dan John with the Idaho Tax commission presented HB 80 relating to the unclaimed property law amending sections 14-524, 14-526 Idaho code. |
Motion | Senator Werk moved to send HB 80 to the senate floor with a “Do Pass” recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote HB 80 was approved. |
Meeting adjourned at 4:05 p.m. |
DATE: | January 29, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Compton moved to accept the minutes of January 27 as written. Senator Hill seconded the motion. By unanimous voice vote the minutes were approved. |
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H 68 | Judy Comstock with the Idaho Treasurer’s office presented HB 68 relating to the Idaho savings program board; amending sections 33-5401, Idaho code to revise the definitions of account owner and member of the family. |
Motion | Senator Sweet motioned to send HB 68 to the senate floor with a “Do Pass” recommendation. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote HB 68 was approved. |
HB 69 | Judy Comstock with the Idaho Treasurer’s office presented HB 69 relating to the Idaho college savings program amending section 63-3022, Idaho code. |
Motion | Senator Malepeai motioned to send HB 69 to the senate floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote HB 69 was approved. |
Senator Bunderson reviewed the Legislative Council Interim Committee Report in relation to high speed internet broadband. This technology has become so important that the Interim committee agreed that this technology is as much of an ordinary and necessary infrastructure as roads and electricity. Senator Bunderson introduced Greg White with the City of Boise Mike Reynoldson with Qwest reported to the committee that there are a Ron Williams with Sprint and the Idaho Cable T.V. Association reported The committee decided to revisit this issue to try to knock down some |
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Chairman Bunderson introduced Nathan Bentley, State GIS Coordinator, who reported on the one year old Idaho Geospatial Committee whose goal it is to build a system of computer software and hardware networks that contain data to tell various groups things like where something is, what its area is, what it’s near etc. Digital spatial data is essential to almost all sectors of the economy. GIS is used as a planning and management tool. |
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Chairman Bunderson reviewed the possibility of the Idaho Building Authority purchasing the MK Plaza. Discussion was held on the benefits of the state owning buildings that they currently pay rent on. The Liquor dispensary was used as an example of the state paying up to three times the value of the building when they were leasing the facility. Due to the hour, this issue will be continued at a future meeting. |
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Meeting adjourned at 5:05 p.m. |
DATE: | January 31, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, McKenzie, Gannon, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senators Compton and Sweet |
Chairman Bunderson called the meeting to order at 3:04 p.m. A silent roll call was taken. Senator Gannon moved to accept the minutes of January 29 as written. Senator Malepeai seconded the motion. By unanimous voice vote the minutes were approved. |
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Ken Harward | Chairman Bunderson introduced Ken Harward, Executive Director of the Association of Idaho Cities. Mr. Harward reported to the committee that a survey was conducted of the members of the Association of Idaho Cities as to the extent of their internal financial controls as well as the adequacy of Idaho Statutes relating to cities. Mr. Harward read a resolution adopted by The Association of Idaho Cities Mr. Harward reported that the Association and the State Controller’s The Association of Idaho Cities supports adding language to Idaho code Mr. Harward was questioned on the number of cities who have The Association of Idaho Cities will prepare legislation relating to internal |
Daniel Chadwick | Chairman Bunderson introduced Daniel Chadwick, Executive Director of the Idaho Association of Counties. Mr. Chadwick reported to the committee that almost everything dealing with counties is set forth in Idaho statute. He stated that provisions of the statute require two of the three county commissioners to approve a claim. Prior to any claim reaching the commissioners, it is reviewed by the elected county clerk who can question department heads. The county treasurer also reviews claims. The county conducts workshops for elected officials and all counties have |
Chairman Bunderson stated that other than the legislation coming from the cities, this review concludes the responsibility of the committee on this issue. |
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The meeting adjourned at 3:35 p.m. | |
January 31, 2003
Honorable Members of the Senate Local Government and Taxation Senator Hal Bunderson, Chairman Brent Hill, Vice Chairman Dick Compton Tom Gannon Cecil Ingram Edgar Malepeai Curt McKenzie Gerry Sweet Elliot Werk Thank you for the opportunity to meet with you today. The Association of Idaho Cities has conducted a review of Idaho The attached resolution was drafted by the Task Force and was We support adding language to 50:1017 that includes, “The city We would also support language acknowledging electronic payments Respectfully submitted, Ken Harward Association of Idaho Cities |
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Resolution 2003-01 Association of Idaho Cities RESOLUTION REAFFIRMING BELIEFS, WHEREAS, Cities in the State of Idaho have a long history of integrity and WHEREAS, all City officials, as stewards of the public trust, have a WHEREAS, the public judges its government by the way public officials and WHEREAS, citizens have a right to expect that every public official and WHEREAS, it is important for all representatives of City government to NOW, THEREFORE, BE IT RESOLVED that we, as representatives of our We are dedicated to the concepts of effective and democratic City We affirm the dignity and worth of the services rendered by City We are dedicated to the highest ideals of honor and integrity in all public We will continue to conduct ourselves in a manner to maintain public We subscribe to systems of strong internal controls and believe current We support clear, concise and understandable budgeting, auditing and We subscribe to fiscally responsible practices, compliance with We endorse openness in government and empowerment of employees to |
DATE: | February 3, 2003 |
TIME: | 3:00 pm |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:05 p.m. A silent roll call was taken. Senator McKenzie moved to accept the minutes of January 31. Senator Malepeai seconded the motion. By unanimous voice vote the minutes were approved. |
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RS 12592 was not heard by the committee. | |
DuWayne Hammond |
Chairman Bunderson welcomed and introduced DuWayne Hammond, chairman of the Idaho State Tax Commission. Mr. Hammond reported on each division within the Tax Commission. The General Services Division provides for centralized management, The Audit and Collections Division provides direct taxpayer service, The Revenue Operations Division administers the voluntary tax The County Support Division provides oversight and technical support in Total budget recommended for FY 2004 is $23,802,600 and 412 Mr. Hammond reported that the target of the Tax Commission is for |
Commissioner
Coleen Grant |
Mr. Hammond introduced commissioner Coleen Grant who reported on the CATS (Convert All Tax Systems) project. This project converted the 25-year-old Legacy computer system to a modern data base. Commissioner Grant reported that this project has been a complete success. It was three months ahead of schedule, under budget (15 million dollars), and it works. She reported that it is an “off the self” type of program and its benefits include, but are not limited to, improved productivity in collections, an improved interface with taxpayers, improved management of unclaimed property and flexibility. |
Commissioner Larry Watson |
Commissioner Watson is in charge of the County Support Division and reported that all 44 counties have successfully achieved statutory compliance with respect to the proper appraisal of all categories of properties. He also reported that the division continues to deploy modern computer Commissioner Watson reported that the Circuit Breaker property tax |
Commissioner Sam Haws |
Commissioner Haws is in charge of the Revenue Operations Division and oversees sales and use tax, revenue operations, taxpayer services, and communications and outreach. She reported that electronic filing of returns has increased 142% over the Tax payer services include holding offsite tax assistance as well as all |
Ted Spangler | Mr. Spangler explained to the committee the MTC (Multi State Tax Commission.) It was created through a compact of 21 states, and among other benefits it offers a joint audit program. This is extremely useful when auditing large corporations who pay taxes in several states. Membership in this organization has brought in large sums of money to Idaho. |
S1035 | Don Munkers with the Idaho Rural Water Association explained that S1035 would raise compensation to board members of water and sewer districts from $50 per meeting to up to $100 per meeting. Each district sets their own budgets and may not opt to use this increase. |
Lynn Moser | Mr. Moser, General Manager of the Eagle Sewer District testified that board meetings are at times very long and complicated. At times members spend numerous hours preparing and studying issues prior to meetings. They serve six year terms, and finding people to hold these positions are, at times, very difficult. |
Motion | Senator Compton moved to send S1035 to the senate floor with a “Do Pass” recommendation. Senator Gannon seconded the motion. Senator Werk requested a roll call vote. |
Vote | By unanimous roll call vote S1035 was approved. |
Senator Hill | Senator Hill explained a protocol item to the committee. If a Senator votes a bill out of the committee with a “Do Pass” recommendation, he or she is expected to vote affirmatively for the bill on the floor. If he or she changes his/her mind on the vote, it is proper to inform the bill’s sponsor. |
Meeting adjourned at 4:45 p.m. |
DATE: | February 5, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:05 p.m. A silent roll call was taken. Senator Compton moved to approve the minutes of February 3. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
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RS 12592C1 | Senator Goedde presented RS 12592C1 which changes prisoner reimbursement and allows counties to hire a collection service to collect delinquent debts owed to a county. It also allows adding a fee to the debt owed to cover the costs of the collection agency fee. Discussion was held on the meaning of “attempt to contact” the debtor |
Motion | Senator Hill motioned to send RS 12592C1 to print. Senator Compton seconded the motion. |
Vote | By roll call vote the motion passed. Senators Bunderson, Hill, Ingram, McKenzie, Gannon, and Compton voted aye. Senators Sweet, Werk and Malepeai voted nay. |
RS 12901 | Chairman Bunderson presented RS 12901 relating to adding language to Idaho code 50-1017 to provide that prior to payment, all claims against the city shall be approved by the city council and the city council shall establish and maintain an adequate and reasonable system of internal accounting controls. It also allows the authorized payment of claims by electronic means. |
Motion | Senator Gannon motioned to send RS 12901 to print. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion carried. |
Chairman Bunderson reviewed the Joint Legislative Economic Outlook and Revenue Assessment Committee information packet showing statewide and industry economic trends and analysis. (A copy of this packet is on file in the secretary’s office.) The Committees mission is to: (1) Make an overall assessment of Idaho’s |
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Meeting adjourned at 4:25 p.m. |
DATE: | February 10, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Hill moved to accept the minutes of February 5. Senator Gannon seconded the motion. By unanimous voice vote the minutes were approved. |
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RS 12813C1 | Senator Noh reviewed the legislation relating to Fire Protection Districts to revise corporate powers and duties of the Board of Fire Protection Commissioners and to make a technical correction. The bill would also revise procedures of how fire protection district funds are handled. It also provides duties of the Board of County Commissioners whenever a vacancy occurs on the Board of Commissioners of a Fire Protection District. |
Motion | Senator Ingram moved to send RS 12813C1 to print. Senator Compton seconded the motion. |
Vote | By unanimous voice vote RS 12813C1 will be printed. |
RS 12938 | Senator Noh presented a Senate Concurrent Resolution which would state the findings of the Legislature and authorize the Legislative Council to appoint a committee to undertake and complete a study of the Local Planning Act and related statutes. This would be an interim study and it has been approximately 30 years since this act has been reviewed. Representatives from the Association of Idaho Cities and the Idaho |
Motion | Senator Ingram moved to send RS 12938 to print. Senator Hill seconded the motion. |
Substitute Motion |
Senator Werk moved to send RS 12938 to print and have it returned to this committee for further review. Senator Gannon seconded the motion. |
Discussion was held on when a concurrent resolution leaves the committee, it goes directly to the floor for debate, and if passed it will go directly to the House floor. Several members felt like they would like more information on this act and land use planning. Chairman Bunderson offered to bring in an expert to help educate the committee on the act. |
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Substitute Motion Withdrawn |
Senator Gannon withdrew his second to the substitute motion. Senator Werk withdrew the substitute motion. |
Vote | By unanimous voice vote RS 12938 will be printed. |
RS 12988 | Senator Goedde reported that this RS cleans up the language that the committee members were concerned about in Senate bill 1070. It now explains that “reasonable attempt” means that the public agency has notified the debtor, either by mail, electronic transaction, telephone or in person of the existence of the debt. Senator Goedde asked the committee to approve this new RS and to hold S 1070. |
Motion | Senator Gannon moved to print RS 12988. Senator Hill seconded the motion. |
Vote | By voice vote RS 12988 will be printed. |
With no objection from the committee, S 1070 will be held. | |
S 1071 | Chairman Bunderson presented legislation providing that prior payment of all claims against a city must be approved by the city council and that the city council maintains a reasonable and adequate internal accounting control system. It also allows cities to accept electronic means as acceptable for payment of claims. The legislation does not have an enforcement provision except for that of public scrutiny and opinion. Ken Harward, Executive Director, of the Association of Idaho Cities stated that his association is comfortable with this legislation. |
Motion | Senator Compton moved to approve S 1071 with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote S 1071 was approved. |
H 130 | Dan John with the Idaho Tax Commission presented H 130 which repeals the $2.00 incentive credit that is given to taxpayers who file their claims electronically. By repealing this credit it will save the state approximately $290,000. He informed the committee that there are many software packages that allow electronic filing free of charge over the internet. |
Motion | Senator Werk moved to approve H 130 with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote H 130 was approved. |
Chairman Bunderson reviewed several sheets of data that were missing from last week’s presentation on the Joint Legislative Economic Outlook. Gross state product by industry was reviewed as well as the number of employees per industry and industry growth over the past ten years. |
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Several members of the committee requested an educational overview of the Department of Commerce. This will be scheduled in the near future. |
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Meeting adjourned at 4:15 p.m. |
DATE: | February 12, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator McKenzie moved to accept the minutes of February 10. Senator Gannon seconded the motion. By unanimous voice vote the minutes were approved. |
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Chairman Bunderson thanked our Page, Hans Amen for his service to the Senate over the past six weeks and presented him with a gift and letter of recognition from the committee. |
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H 113 | Michael J. Kane representing the Idaho Sheriffs Association testified on H 113 which is designed to make it clear that the sheriff of a county has the primary responsibility and duty to engage in search and rescue operations. The bill clarifies that there can be only one person charged with the responsibility for a search and rescue operation and one person in charge of obtaining and maintaining resources for search and rescue operations. Mr. Kane presented the committee with an amendment to line 33 section Mr. Kane requested that the committee send the bill to the 14th Order to |
Motion | Senator Compton moved that H 113 be sent to the 14th Order. Senator Hill seconded the motion. |
Bruce Allcott, representing the Idaho Fire Chief’s Association and a Fire Chief in Caldwell, testified that his Association feels that this will not effect them as they handle mostly urban rescue. |
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John Cline, Director of the Bureau of Disaster Services for Idaho, testified that nothing in the bill or amendments would change the nature of the Disaster Services Act. |
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Vote | By unanimous voice vote H 113 will be sent to the 14th Order. Senator Keough and Senator Compton will co-sponsor the amendments to the bill. |
Kerry Ellen Elliott with the Idaho Association of Counties, reported on Transferable Development Rights as required by law. This Act was passed in 1999 and is voluntary. The Act is a planning tool for counties for land planning and is used to help counties keep open space or agricultural land. Ms. Elliott reported that four counties have ordinances that are working The committee requested that Ms. Elliott and the Idaho Association of (A copy of this report is on file in the secretaries office.) |
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Shirl Boyce, Vice President Economic Development, Boise Metro Economic Development Council, Boise Metro Chamber of Commerce reported that tax rates, labor costs, land and office space costs, energy costs, capital costs, and business climate are the key factors in attracting business to a city. Other factors include access to a trained educated workforce, close proximity to educational and research facilities, an existing network of suppliers, availability of venture capital, climate and other quality of life factors, and the general cost of living in an area. Mr. Boyce suggested that the Legislature form and interim committee or The committee discussed the possibility of crafting a Concurrent |
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Bob Deely, Managing Director for Cypress Semiconductor testified that Idaho is in danger of stalling or declining due to lack of university engineering infrastructure and budget cuts. A well educated workforce is key to economic development. |
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Michael Ferguson, Chief Economist for the Division of Financial Management reviewed the General Fund Revenue Forecast for FY 2003-2004. FY 2003 forecasts a growth rate of 4.3%. FY 2004 forecast a growth rate FY 2001 had several tax law changes that affected FY 2002. The first three months of FY 2003 the sales tax revenue was strong due Mr. Ferguson reported that the national economy needs to improve for |
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Meeting adjourned at 5:15 p.m. |
DATE: | February 17, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Compton moved to accept the minutes of February 12 as written. Senator Gannon seconded the motion. By unanimous voice vote the minutes were accepted. |
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Chairman Bunderson introduced Abigail Morehouse from Boise as the committees’ new Page for the last half of the session. |
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S1108 | Senator Goedde presented S 1108 allowing counties to retain collection agencies to collect past due debt owed a county. He presented the committee with an amendment that clarifies that unless the debtor within 30 days of receiving notice disputes the validity of the debt that the debt shall be deemed valid. If the debtor disputes the debt, verification of the debt will be mailed to the consumer by the public agency. He asked that the committee send the bill to the 14th Order. Discussion was held on how the collection agencies would be paid. By Discussion was held on what type of complaint process is available to the |
Motion | Senator Werk moved to hold the bill in committee. Senator Sweet seconded the motion. |
Substitute Motion |
Senator Compton moved to send the bill to the 14th Order. Senator Hill seconded the motion. |
Substitute Motion Vote |
By roll call vote S 1108 will be sent to the 14th Order. Senators Bunderson, Hill, Ingram, McKenzie, Gannon, and Compton voted Aye. Senator Sweet, Werk, and Malepeai voted Nay. |
H 222 | Representative Skippen presented H 222 that would allow County Commissioners the option of providing for the election of members of the Board of Trustees for mosquito abatement districts, or to appoint them. It would eliminate the reporting requirements by mosquito districts to County Commissioners, and provide for notification and public hearings of mosquito abatement districts. The mosquito abatement Board of Trustees would assume the responsibilities of the County Commissioners for mosquito abatement districts. Noncontiguous areas could be annexed into a mosquito abatement district, and noncontiguous districts could consolidate. It would eliminate the requirement for land ownership to vote in an election to establish a mosquito abatement district. Representative Skippen feels that these changes would make the Trustees more responsible to taxpayers and more efficient in planning mosquito abatement. An elected Trustee would have to abide by all laws affecting elected The Idaho Association of Counties supports this legislation. Discussion was held on what entity would be liable if an organic farm was |
Motion | Senator McKenzie moved to send the bill to the 14th Order. The motion died for lack of a second. |
Motion | Senator Hill moved to hold H 222 in committee. Senator Ingram seconded the motion. |
Vote | By unanimous roll call vote H 222 will be held in committee. |
H 142 | Max Vaughn, Minidoka County Assessor representing the Idaho Association of Counties and the Idaho Association of County Assessors, presented H 142. The purpose of the bill is to provide the County Assessor flexibility in directing the 5-year reappraisal plan required by Idaho code. Present law requires reappraisal of not less than 20% of all parcels of property in the county so that 100% of all properties are appraised in a five-year period. Due to factors including more properties requiring first time appraisals, |
Motion | Senator Compton moved to send H 142 to the floor with a “Do Pass” recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote H 142 will be sent to the floor with a “Do Pass” recommendation. |
Richard Elwood, the statewide Information Technology Coordinator reported that his department supports the Information Technology Resource Management Council (INTRMC) and has developed an online listing of all of the internet providers in a county. This tool can be used by companies looking into locating in Idaho. |
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Charlie Creason, Manager of Syringa Networks, reported to the committee that Syringa Network offers 2.5 gigabits in broadband conductivity to the southern half of the state. Many small communities can now attract high tech business. They have spent $12 million building this network along with another $20 million from 12 independent telephone companies. They have contracts with national and international carriers for high speed service across the world. He reported that reaching every household with high speed broadband is |
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Rich Hahn representing IDACORP introduced Mike Feiler, Vice President of IDACOMM. IDACOMM can provide first mile, middle mile and last mile network solutions for large entities to residential customers. They have various partners to meet any need that is requested. |
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Mike Reynoldson, Manager of Qwest reported that Qwest operates worldwide but primarily in the 14 western states. He explained the difference and gave examples of the type of bandwidth that is available, how fast each type is, and who may need to use what type of service. Mr. Reynoldson explained that a large grocery chain may need ultra high speed broadband to use when a customer scans a credit card to pay for groceries. The customer’s payment information may be transmitted to several locations around the country for approval and receive a reply in a few seconds. A residential customer may not need that type of speed. He stressed that Idaho consumers do have choices. |
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Ron Williams representing the Idaho Cable Telecommunications Association, introduced Dan Clark the manager of Cable One and Jim Hannan, Vice President of Engineering for Cable One. Mr. Clark reported that Cable One has invested $60 million in the Mr. Hannan explained that the reason fiber cable is not in all homes is |
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Shirl Boyce, Vice President Economic Development, Boise Metro Economic Development Council, Boise Metro Chamber of Commerce reported that telecommunications is an absolutely critical element in most any company’s decision to remain and grow in an area. He reported that no company has not come to Boise because of a lack of high speed broadband. A meeting was held with service providers and Boise City representatives,
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Pam Ahrens, Director of the Department of Administration, expressed her appreciation that the service providers were starting a dialog. She wants to see all providers receive a return on their investment. |
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The meeting adjourned at 5:10 p.m. |
DATE: | February 24, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Dr. Rulon Ellis (temporary replacement for Senator Malepeai) |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Hill moved to accept the minutes of February 17 as written. Senator McKenzie seconded the motion. By voice vote, with Senator Werk objecting, the minutes passed as written. |
Chairman Bunderson welcomed Dr. Rulon Ellis who is sitting in for Senator Malepeai. |
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H 145 | Michael Kane representing the Idaho Sheriff’s Association introduced H 145 that allows counties to set sheriffs service of process fees in an amount reasonably related to the actual cost of the service but not exceeding the actual cost. The legislation allows individual counties to study actual costs and set fees accordingly. Vicky Beall, Civil Deputy for Boise County, testified in favor of the County Commissioners are required to hold hearings on these fees and |
Motion | Senator Compton moved to send H 145 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote H 145 passed. Senator Compton will sponsor the bill on the floor. |
H 146 | Michael Kane, representing the Idaho Sheriff’s Association, presented H 146 explaining that the sheriff’s revolving fund is a small ($5,000) separate fund consisting of monies from the sheriffs budget that is available for sheriffs travel and hotel expenses. This fund is used in a more streamlined fashion than through the normal county claims process for immediate needs. The legislation would increase the fund from $5,000 to $10,000 and allow it to be used for training purposes and for other duties requiring the need of a warrant. Discussion was held on what checks and balances are available for this |
Motion | Senator Gannon moved to send H 146 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H 146 passed. Senator Gannon will sponsor the bill on the floor. |
Jeff Shinn, with the Division of Financial Management and the kindergarten through twelfth grade (K-12) budget analyst for Governor Kempthorne, presented an overview of where money comes from to fund public schools. In FY 2004, $943 million (56%) will come from the general fund and regular appropriations, $323 million from local levies, $117.7 million from other local levies, $76.1 million from local tuition, investments etc. for a total of 30.7% from local entities, and $159.6 million (9.5%) from the federal government. Mr. Shinn reported that 85% of funding for Professional-Technical education comes from the general fund with 14% from the federal government and 1% from other sources. Discussion was held on the recommended 2% hold back by JFAC and the The average cost to educate a student in Idaho is $5,569.00. Enrollment Funding for Charter Schools was briefly discussed. They do not receive |
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Jane McClaran, a budget analyst with the Division of Financial Management handling secondary education, reported on the FY 2003 appropriation of $294,443,000 for colleges and universities. $213,558, 800 (73%) comes from the general fund, $67,127,300 (23%) comes from student fees. Of student fees, 63% are restricted fees which cannot be used for instructional costs. They are used for physical plant maintenance and operations, student services and institutional support. Thirty seven percent (37%) of student fees are unrestricted and can be used for any purpose including instructional costs. $13,635,900 (5%) of funding comes from endowments and has decreased in past years due to poor market performance. Ms. McClaran reported on appropriated and unappropriated funds per Appropriated Unappropriated Boise State University $ 94,386,300 $122,428,159 Idaho State University $ 83,208,800 $106,009,605 University of Idaho $111,816,100 $179,321,800 Lewis Clark State College $ 16,849,300 $ 14,288,300 Of all appropriated funds in FY 2003, 52.1% were used for instruction, Ms. McClaran reported that the average annual resident student tuition at In response to a question asking if Idaho has too many colleges or |
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Meeting adjourned at 4:45 p.m. |
DATE: | February 26, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Vice Chairman Hill opened the meeting at 3:03 p.m. A silent roll call was taken. Senator Gannon motioned to accept the minutes with corrections. Senator Sweet seconded the motion. By unanimous voice vote, the minutes of February 24 were approved as corrected. |
Lyle Cobbs with the Board of Tax Appeals, introduced Lisa Godwin from Orofino, who Governor Kempthorne has appointed to the Board of Tax Appeals for a term expiring June 30, 2005. Ms. Godwin is a native of Idaho and will represent the 10 northern counties on the board. Lisa Godwin testified that she is 32 years old, a native of Idaho with two |
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H 255 | Representative Fred Tilman presented H 255 that would provide that property used for Charter School purposes is exempt from taxation. He testified that Charter Schools are meant to be part of the public school system. They are funded with local entity money but receive no property tax revenue. Some Charter Schools need to rent or lease a portion of a building to use for classes. The legislation would allow the part of the building used for Charter School purposes to be tax exempt. Representative Tilman reported that during a Charter School start up |
Kerri Whitehead, representing the Idaho Charter School Network testified that three Charter Schools in Idaho lease space (Pocatello Community, ANSWER, and Nampa Charter School.) The landlords would receive the exemption and pass the savings onto the Charter School. |
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Motion | Senator Werk motioned to send H 255 to the floor with a “Do Pass” recommendation. Senator Sweet seconded the motion. |
Vote | By unanimous voice vote H 255 passed. Senator Werk will sponsor the bill. |
H 223 | Representative Eulalie Langford presented H 223 which would allow counties that wish to do so to return severed mineral rights to the land from which they originated. In Bear Lake County there are land owners that have sold their land but retained half of the mineral rights to that land. When the mineral rights and land are kept together, they are taxed as one. When a portion of the mineral right is severed from the land, it becomes a separate asset that is taxable. The last oil well dug in Bear Lake County was in 1952 and it came up dry. The county has a whole stack of mineral rights that are yielding no revenue and people are refusing to pay taxes on them. Under present law, the only way the county can collect the tax is to sell the severed mineral rights at a public auction where there have been no buyers. Putting the mineral rights back with the land would help the county clear up their books. |
Motion | Senator Sweet motioned to send H 223 to the floor with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote H 223 passed. Senator Sweet will sponsor the bill. |
H 151 | Representative Wendy Jaquet presented H 151 which amends existing code to extend the appointed positions of planning and zoning commissioners beyond two terms with the concurrence of two-thirds of the governing board (county commissioners or city council members.) This legislation repeals term limits on planning and zoning Representative Tim Ridinger testified that small communities get hit This legislation would allow terms to be extended. There is also a |
Motion | Senator Compton motioned to send H 151 to the floor with a “Do Pass” recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote H 151 passed. Senator Compton and Senator Stennett will sponsor the bill. |
H 225 | Dan John with the Tax Commission, presented H 225 which clarifies the transferability of the tax credits for investment in broadband equipment and the incentive income tax investment credit. Once the credit has been transferred to a taxpayer for use on the transferee’s return, it may not be transferred again. In the case of the broadband credit, the taxpayer who earned the credit may make the transfer through an intermediary. The incentive investment credit can be transferred one time. The |
Motion | Senator McKenzie motioned to send H 225 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote H 225 passed. Senator McKenzie will sponsor the bill. |
H 194 | Dan John with the Tax Commission presented this legislation that annually updates references to the Internal Revenue Code (IRC). It conforms the Idaho income tax to changes made to the IRC after January 1, 2002, including the federal “Job Creation and Worker Assistance Act of 2001.” It includes that no Idaho deduction will be allowed relating to: 1. The special allowance for 30% first year “bonus depreciation” 2. Expenses of elementary and secondary teachers for purchases of Mr. John estimated that if Idaho conformed to the IRC in full leaving in Senator Brent Hill testified that as an accountant he thinks the bill has Senator Hill presented the committee with a chart showing bonus This affects assets with depreciable lives of up to 20 years. Not Senator Hill testified that the deduction for kindergarten through twelfth Discussion was held on deductions for anyone who donates to a school. Senator Hill asked that the committee send the bill to the amending Discussion was held on amending the bill to conform to the IRC and Mr. John felt that tacking on language freezing the investment tax credit Mr. Skip Smyser representing Connolly and Smyser testified that he Russell Westerberg representing PacifiCorp testified that the committee Randy Nelson, President of the Associated Taxpayers of Idaho agreed H 194 will be held until the committee’s next meeting. Meeting adjourned at 4:50 p.m. |
DATE: | March 3, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator Sweet was excused. |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. Senator Malepeai motioned to accept the minutes of February 26 as written. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
Motion | Senator Hill motioned to accept the Gubernatorial appointment of Lisa Godwin to the Board of Tax Appeals for a term expiring June 30, 2005. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the appointment of Lisa Godwin to the Board of Tax Appeals was accepted. |
H 195 | Representative Mary Lou Shepherd presented H 195 to increase the maximum compensation for fire protection board commissioners to $75 per day. Representative Shepherd presented an amendment to H 195 clarifying that the $75 per day is not mandatory. It allows that the fire board commissioners may receive up to the $75 per day. She asked that H 195 be sent to the Amending Order. Representative Mike Naccarato testified to the numerous duties a fire |
Motion | Senator Compton motioned to send H 195 to the Amending Order. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote H 195 will be sent to the Amending Order. Senator Compton will sponsor this amendment. |
H 233 | Representative Mary Lou Shepherd presented H 233 which revises the provisions in Idaho code relating to the election of fire protection district commissioners. The existing language for conversion to the election schedule set forth in Idaho code has been unworkable for some districts. |
Motion | Senator Werk motioned to send H 233 to the floor with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote H 233 was passed. Senator Werk will sponsor this bill. |
H 76 | Ted Spangler with the Tax Commission, testified that occasionally the Tax Commission has a taxpayer who just will not pay a delinquent tax obligation. The Tax Commission may have to seize property and sell it to satisfy the debt. They can seize the property and sell it, or seek judicial authorization to go into a property with a warrant and seize the property. With judicial authorization, the sheriff seizes the property and conducts a sale. The legislation changes the process by having the sheriff seize the |
Motion | Senator McKenzie motioned to send H 76 to the floor with a “Do Pass” recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote H 76 was passed. Senator McKenzie will sponsor the bill. |
H 194 | Senator Hill presented the committee with a chart and letters from the Idaho Society of Certified Public Accountants, and Stanton, Jackson & Co., PLLC, supporting full conformity with the Internal Revenue Code. Senator Hill testified that by conforming with the Internal Revenue Code Senator Hill testified that allowing teachers up to a $250 deduction for Dan John with the Tax Commission, testified that the bill as it is written Steve Ahrens, President of the Idaho Association of Commerce and Mike Ferguson with the Division of Financial Management, testified that |
Motion | Senator Ingram motioned to hold H 194 in committee. Senator McKenzie seconded the motion. |
Discussion was held that by holding the bill in committee it would leave the taxpayers in a lurch. Holding the bill has Idaho not conforming with the IRC at all. |
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Substitute Motion |
Senator Gannon made a substitute motion to send H 194 to the Amending Order. Senator Compton seconded the motion. Senator Hill called for a roll call vote. |
Substitute Motion Vote |
Chairman Bunderson, Senators Hill, Ingram, McKenzie, Gannon, Compton, Werk, Malepeai voted aye. Senator Sweet was excused. H 194 will be sent to the Amending Order. |
Dan John reported on what the Investment Tax Credit (ITC) is and what in Idaho qualifies for the credit. Generally what qualifies is tangible personal property like machinery, manufacturing equipment, elevators, single purpose agricultural or horticultural structures, qualified timber products, petroleum storage facilities, qualified broadband equipment. Anything used in a business other than a structure affixed to real property qualifies. The ITC is not transferrable and costs Idaho anywhere from $10.7 million Steve Ahrens with IACI, reported that the ITC is very essential to the |
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Meeting adjourned at 4:50 p.m. |
DATE: | March 5, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll call was taken. Senator Malepeai motioned to approve the minutes of March 3. Senator Gannon seconded the motion. By unanimous voice vote, the minutes of March 3 were approved. |
H 256 aa | Speaker of the House, Representative Bruce Newcomb, presented H 256 as amended. The purpose of the legislation is to establish a consistent review process that better enables governments to evaluate whether proposed actions may result in a taking of private property without due process. The legislation ensures that governments catch potential mistakes. A takings analysis is only triggered after a written request from an owner of real property affected is filed following a final action being taken by the governmental entity. Regulatory taking is a regulatory or administrative action resulting in Bill Chisholm from Buhl, Idaho testified in opposition to H 256. He felt Representative Kathy Skippen testified that the legislation is good Lauren McLean representing the Idaho Conservation League, testified in Jo Ann Butler, an attorney and member of the task force who wrote the Ken Harward, Association of Idaho Cities, testified that his association is Nancy Merrill, Mayor of Eagle, Idaho testified that Eagle is in support of Norm Semanko representing the Idaho Water User’s Association, |
Motion | Senator Compton motioned to send H 256 to the floor with a “Do Pass” recommendation. Senator Sweet seconded the motion. |
Vote | By unanimous voice vote H 256 passed. Senator Sweet and Senator McKenzie will co-sponsor the bill. |
H 257 | Representative Bruce Newcomb presented H 257, legislation that makes H 256 work. It amends the Local Land Use Planning Act to provide that various actions taken by local governments in planning and zoning actions may be subject to a regulatory takings analysis, to revise notice requirements so that landowners within a specified distance of a proposed action receive notice, provide that an interim ordinance or moratorium may be in effect for not more than one calendar year and to provide procedures to sustain restrictions established by an interim ordinance or moratorium and to provide that every final decision concerning a site specific land use request may be subject to a regulatory takings analysis pursuant to 67-8003, Idaho Code. |
Motion | Senator Sweet motioned to send H 257 to the floor with a “Do Pass” recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote H 257 passed. Senators Sweet and McKenzie will sponsor the bill. |
Chairman Bunderson introduced former Chief Justice of the Supreme Court, Robert Bakes. |
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Chairman Bunderson conducted a training for the committee, reviewing selected legislation either in process, or being considered that affect general fund revenue. A. A 1 ½ % sales tax increase proposed by Governor Kempthorne B. A $.34 cigarette tax increase proposed by Governor Kempthorne C. There are two other bills raising tobacco taxes pending in the House D. House Bill 135 is in the House Revenue and Taxation Committee. E. Quarterly payment of estimated income taxes was discussed. If this |
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Senator Hill thanked Dan John, Ted Spangler, Mike Ferguson and Randy Nelson for their help and advice in keeping the committee educated on tax issues. |
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Meeting adjourned at 5:10 p.m. |
DATE: | March 10, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator McKenzie |
MINUTES: | Vice Chairman Hill opened the meeting at 3:10 p.m. A silent roll call was taken. Senator Ingram motioned to accept the minutes of March 5. Senator Sweet seconded the motion. By unanimous voice vote the minutes were approved. |
H 276 | Representative Gagner presented H 276 which seeks to restrict cities in Idaho when dealing with Urban Renewal districts, from making decisions outside of the city boundary in the county. The legislation corrects a typographical error and further defines “Area of Operation.” “Area of Operation” means the area within the corporate limits of the Both cities and counties will have to come to an agreement to change |
Motion | Senator Gannon motioned to send H 276 to the floor with a “Do Pass” recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote H 276 passed. Senators Lodge and Gannon will co-sponsor the bill on the floor. |
Dan John with the Tax Commission explained the Streamlined Sales Tax legislation (SSTIS). The legislation would allow Idaho to participate with thirty-five other states in the Streamlined Sales Tax Implementing States. The legislation would enable Idaho to collect sales tax from remote sellers. In 2001, Idaho lost $44 million in sales tax. It is estimated that by 2006, Idaho could lose $151 million. One piece of legislation would make Idaho an implementing and |
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Discussion was held on several bills that are in the House. H-96 that would cap local government revenue sharing has been held in the Revenue and Taxation Committee. H-126 capping school property tax relief is also held in Revenue and Taxation. H-250 repealing the estate tax was held in House Revenue and Taxation at the request of the sponsor. H-191 which repeals the sales and use tax exemption on Indian reservations is in House Revenue and Taxation. Legislation to raise the cigarette tax by $1 was returned to the sponsor. H-194 was amended on the Senate floor. |
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Meeting adjourned at 3:50 p.m. |
DATE: | March 17, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Vice Chairman Hill opened the meeting at 3:00 p.m. A silent roll was taken. Senator Gannon motioned to accept the minutes of March 10. Senator Malepeai seconded the motion. By unanimous voice vote the minutes were approved. |
H 140 | John Watts, representing the Idaho Library Association, testified that H 140 clarifies that if city residents vote to join a library district, that the city library budget in effect on the date of the election is the budget to be used to determine a total district budget and to calculate the first annual assessment fee. Cheri Rendler, representing the Ada Community Library District in |
Motion | Senator Compton motioned that H 140 be sent to the floor with a “Do Pass” recommendation. Senator Bunderson seconded the motion. |
Vote | By unanimous voice vote H 140 passed. Senators Compton and Bunderson will co-sponsor the bill. |
H 302 | Representative Raybould introduced H 302 that identifies the standard to be applied and the burden of proof in appeals of property tax assessments. The legislation changes the legal standard from one that requires proof that an assessment is manifestly excessive, arbitrary and capricious, or fraudulent and oppressive to a standard that simply requires proof that the assessment is erroneous. It changes the burden of proof needed from “clear and convincing” burden to the normal “preponderance of the evidence” standard. Representative Raybould testified that the changes make the appeals process more fair in challenging an assessment. The taxpayer will have the burden of proof in seeking relief. |
Carl Olsson, Deputy Attorney General, spoke on behalf of the Tax Commission. He opposes the legislation and testified that it would lower property taxes on large properties and raise taxes on homes, farms and smaller properties. He testified that it would flip the burden of proof from the taxpayer to the assessor. Assessors can defend a challenge, but large properties have more money to hire appraisers and mount a challenge. Many small counties cannot bear the burden of defending a challenge from a large property owner and may lower the taxes without defending the appraisal. |
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Rick Smith, an attorney and Certified Public Accountant, testified that he has done 20 years of property tax work in several states and has reviewed the standard of proof in all 50 states. H 302 is patterned after a Utah law and it does not shift the burden of proof from the party seeking affirmative relief. He thinks the bill relieves the taxpayers from having to go through big hurdles if a mistake is made. He doesn’t see many large corporations appealing due to the fact that they provide all the information to the assessor prior to the property taxes being set. It would put Idaho in line with 47 other states. |
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Bob McQuade, an assessor with Ada County, has two concerns with the bill. One concern is that the bill is confusing as to what type of proof is needed to mount an appeal, and the second concern is that it is a tax shift if big business only needs a preponderance of evidence. He wants to see the higher standard of proof maintained. Mr. McQuade, explained that the assessors have many checks and balances with the Tax Commission to ensure the accuracy of appraisals. |
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Alex La Beau, testified that the Idaho Association of Realtors are in favor of the bill and that it is good policy. |
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Gene Kuehn, an assessor with Canyon County, testified that assessors listen to evidence that taxpayers bring to them when questioning an assessment, and that they do use a preponderance of the evidence when making decisions. He would like to see a higher burden of proof. |
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Dr. Greg Nelson, representing the Idaho Farm Bureau Federation, testified that the appeals process can be frightening and that his association is in favor of the legislation. |
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Steve Ahrens, with the Idaho Association of Commerce and Industry, supports the bill and stated that the smaller taxpayers gain. |
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Representative Eskridge, testified that he has gone through the appeals process and felt intimidated. The legislation will make the process less intimidating. |
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Dan Chadwick, Executive Director with the Idaho Association of Counties, testified that the legislation is a huge shift in policy, and that 60 years of case law will go down the tube. He encouraged the committee to hold the bill. |
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Motion | Senator Sweet motioned to send H 302 to the floor with a “Do Pass” recommendation. Senator Ingram seconded the motion. |
Senator Compton explained to the committee that as a county commissioner for six years, he has listened to two thousand appeals. He feels that the assessor’s office is helpful and does show the taxpayer evidence that justifies the assessment. Assessors must be 90% to 110% on target in accuracy of appraisals. He feels that assessors from small counties will fold when dealing with large companies. He would like to see this bill revisited. Senator Sweet feels that the bill gives everyone a fair standard. |
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Substitute Motion |
Senator Werk made a substitute motion to hold the bill in committee. Senator Malepeai seconded the motion. |
Substitute Motion Vote |
Senators Compton, Werk and Malepeai voted Aye. Senators Hill, Ingram, Sweet, McKenzie, and Gannon voted Nay. Senator Bunderson was excused. The substitute motion failed. |
Vote | Senators Hill, Ingram, Sweet, McKenzie, Gannon, Compton and Malepeai voted Aye. Senator Werk voted nay. Senator Bunderson was excused. |
H 232aa | Kevin Burnett, the Executive Director of Downtown Boise testified that H 232 as amended is intended to provide full disclosure of the status of property to be sold or leased within a current Business Improvement District. It would make a future tenant or owner aware that they are purchasing or leasing property within a Business Improvement District and any obligations that would be required of them. The legislation will eliminate the hunting for new tenants to bill for dues of the district. |
Motion | Senator Gannon motioned that H 232 be sent to the floor with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote H 232aa passed. |
Meeting adjourned at 5:10 p.m. |
DATE: | March 19, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson opened the meeting at 3:00 p.m. A silent roll was taken. Senator McKenzie motioned to approve the minutes with a correction. Senator Compton seconded the motion. By unanimous voice vote the minutes of March 17 were approved. |
H 136 | Representative Raybould presented H 136 which makes amendments to section 63-602FF. It restores intended language in H 488 as amended, that passed the legislature in 2002, on who qualifies for the agricultural exemption for parcels of land in a rural home site development plat. Developed plats would continue to qualify for the exemption if they were |
Russell Westerberg, representing New Horizons Development, testified that the bill is unfair, unnecessary and a departure from the intent of H 488 as amended. It is a policy reversal that negates work done previously. He feels that it takes back the incentive to develop in rural areas. He fears that people who developed plats according to the law last year will see a tax increase if H 136 passes. He encouraged the committee to amend the bill. |
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Alex LaBeau, representing the Idaho Association of Realtors, testified that his association supported H 488 last year and supports H 136 this year. He believes that H 136 clarifies that the agriculture (Ag) exemption should be used only on land that is used for agricultural purposes. |
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Dan John with the Tax Commission, testified that since the passage of H 488 three lawsuits have been filed. The Tax Commission defines the word “previously” to mean last year. |
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Michael Ferguson, a developer from Rexburg, opposes H 136. He testified that the current law is working. H 488 was passed as an economic development incentive to bring development to rural Idaho. |
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Russ Hendricks, testified that the Idaho Farm Bureau supports H 136. H 488 was never intended for developers to qualify for the Ag exemption. |
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Mitch Jacobs, a farmer and rancher, testified that he has started developing his agricultural land. Prior to the passage of H 488 he was taxed on plats before they were sold. He was encouraged with the passage of H 488 and believed that it would protect him for the next fifteen years. Mr. Jacobs believes that there should be no tax before there is any economic gain. As a cattle rancher, he must put up fences to keep his cattle out of developed plats. |
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Max Vaughn, Minidoka County Assessor and President of the Idaho Association of County Assessors, supports H 136. He believes that it restores the intent of H 488. Mr. Vaughan reported that the final fiscal impact as a result of the amendment to H 488 was a 30 million-dollar loss in assessed value shifting property taxes to other property owners. This year schools will lose $120,000 dollars. He testified that H 488 was passed so Idaho farmers and ranchers could be economically competitive with surrounding states that have a similar exemption. |
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Representative Raybould closed testimony, reporting that in July the Tax Commission asked him to fix some of the problems that have come up with H 488. With the advice of the Attorney General’s office H 136 was developed. |
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Motion | Senator Compton motioned to send H 136 to the 14th Order for amendment. Senator Sweet seconded the motion. |
Vote | Senators Ingram, Sweet, McKenzie, Compton, and Malepeai vote Aye. Senators Hill, Gannon, and Werk voted Nay. Senator Bunderson was excused. Senator Compton will work on the amendments. |
H 321 | Representative Jaquet, testified that H 321 states that those who are buying and selling transferable development rights have the discretion as to whether the right will be transferred permanently or only for a fixed period of time, stated in a written contract that must be recorded with the county recorder. |
John Eaton, representing The Building Contractors Association of SW Idaho, wants the Transferrable Development Rights program to work, and the proposed changes in H 321 make them work. |
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Alex LaBeau, representing the Idaho Association of Realtors, testified that H 321 allows more flexibility for buyers, sellers, and developers. |
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Kerry Ellen Elliott, with the Idaho Association of Counties, refreshed the committee’s minds on what transferable development rights are, and which counties have programs. |
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Motion | Senator Gannon motioned to send H 321 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H 321 passed. Senators Gannon and Stennett will co-sponsor the bill. |
H 177 | Jack Lyman, representing the Idaho Manufactured Housing Association, introduced H 177 which passed through the Senate Commerce Committee and was on the Senate floor when he requested that it be sent to the Local Government Committee. He brought amendments to the bill and asked the committee to send it to the 14th Order for amendment. The amended legislation would allow an existing manufactured housing |
Patricia Nilsson, Planning Manager with Ada County Development, testified that certain provisions of H 177 have caused Ada County to oppose the bill. The definition of a manufactured home park is inconsistent with the existing definitions in Idaho statute 67-6509b. It is inconsistent with requirements of Chapter 13, Title 50, Idaho Code. The fee definition is inconsistent with Idaho Code 67-6519, and H 177 is unclear on a process for governing board action. In response to an inquiry as to why it is so difficult to convert from being a |
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Eugene Gunderson, Director Southwest District Health, addressed public health concerns in relation to water and sewer systems in existing parks. Water systems will still have to be maintained as public water systems with periodic testing, reporting and maintenance by a certified drinking water manager. Health Districts would not be able to lift sanitary restrictions without redesign or reconstruction of the subsurface sewage disposal systems during the platting process. Failed septic systems may not be approved, and expensive alternatives would be required to conform to standards. |
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Kerry Ellen Elliott, with the Idaho Association of Counties, testified that H 177 if approved is making a major policy shift. Every developer has to go through the subdivision process. Also the bill does not guarantee that the lots will be sold by the owner of the park. She stated that there is no clear way to implement the bill if it passes. |
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Jack Lyman, Manufactured Housing Association, closed testimony by telling the committee that the amendments to the bill have covered what the Department of Environmental Quality (DEQ) has asked for. Not all manufactured home parks will qualify to be subdivided. The bill will not allow substandard parks to subdivide. |
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Motion | Senator Sweet motioned to send H 177 to the 14th Order for amendment. Senator Ingram seconded the motion. |
Discussion was held on the dual standards set for qualifying for a manufactured home park and a subdivision. The standard should be the same for both entities. |
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Vote | By voice vote with Senator Hill dissenting H 177 will be sent to the amending order. Senator Ingram and Senator Noble will sponsor the amendments. Senator Compton will work with Jack Lyman on crafting the amendments. |
Meeting adjourned at 6:00 p.m. |
DATE: | March 24, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll was taken. Senator McKenzie motioned to accept the minutes of March 19. Senator Compton seconded the motion. By unanimous voice vote, the minutes were approved. |
H 264 | Bonnie Tolman, an assessor with Jerome County, presented the H 264 to clarify the definition of occupancy of a house after construction. The legislation would add an additional definition to the term “occupied” to include the use of the property by any person as a residence including occupancy of improvements or use in storage of vehicles, boats or household goods, provided such use is not solely related to construction or sales of the property. |
Motion | Senator Compton motioned to send H 264 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H 264 passed. |
H 317 | Speaker of the House, Bruce Newcomb presented H 317 which would allow companies who are located in Idaho to forego the Income Tax Investment Credit (ITC), by electing an exemption from personal tax on the property for two years. Taxpayers who have experienced a loss situation are not eligible to claim the ITC. The bill allows taxpayers who have suffered losses to elect to be exempt from property tax on personal property acquisitions/investments for two years in lieu of the ITC. Speaker Newcomb testified that the legislation would provide a way to A question was asked as to why the legislation was written to give the |
Randy Nelson, President of the Associated Taxpayers of Idaho, presented an example of revenue that could be lost from public schools if the legislation were to pass. He explained that the bill would allow taxpayers the opportunity to forego a year of earned income tax ITC by electing to take a 2-year exemption from the personal property tax on the property investment in Idaho. It would allow only taxpayers who have suffered losses to take this election on new personal property acquisitions/investments. The time line for a taxpayer to take the election would be: 1) They had a negative taxable income in the 2001 tax year, 2) made qualified ITC investments that are placed in service beginning in the 2003 tax year, 3) elect in 2004 to take personal property tax exemptions on the value of these investments in lieu of the ITC value, and 4) get the two years of personal property tax exemptions in tax calendar years 2004 and 2005. A question was asked what would happen if the company didn’t survive |
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Phil Homer, Legislative Advisor for the Idaho School Administrators, testified that this is a tax shift to local property owners and schools will lose millions of dollars in funds. |
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A.J. Balukoff, School Board Member with the Boise School District, doesn’t see how this is an incentive for companies to move to Idaho. He is concerned that the recaptured money from companies who fail or leave Idaho will be paid back to the state and not to the counties that incurred the loss. School districts are already seeing a loss of funds. |
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Steve Ahrens, President of the Idaho Association of Commerce and Industry, testified that everyone understands that we are in difficult economic times and such times call for innovative approaches to dealing with financial problems. In difficult times the state needs to do everything to help businesses survive. H 317 may not affect a large number of businesses, but it will be a great help to those businesses that will be able to use this legislation. The tax shift would only be a small sum compared to total statewide personal property taxes that could be lost if companies went out of business. |
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Dan Chadwick, Executive Director of the Idaho Association of Counties, testified that it would be bad for the counties if the recaptured money from a failed company or a company that left Idaho were paid to the state. He also questioned if this was a one time deal for companies. Discussion was held on how important it is for the state to retain |
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Ted Spangler with the Idaho Tax Commission, testified that the legislation is administrable. |
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Speaker Bruce Newcomb closed testimony informing the committee that Idaho has a two to five year climb out of trouble. Business is not growing and nobody wants to borrow money. The time value of money is zero and still nobody wants to invest. Other states like Virginia have better incentives than Idaho to attract and retain business. He explained that the sunset clause for the bill is if it is not working in two to five years, the legislature can change it. |
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Motion | Senator McKenzie motioned to send H 317 to the floor with a “Do Pass” recommendation. Senator Sweet seconded the motion. |
Substitute Motion |
Senator Malepeai motioned to send H 317 to the 14th Order. Senator Werk seconded the motion. |
Substitute Motion Vote |
By voice vote the substitute motion failed. Senators Malepeai and Werk voted Aye. Senators Hill, Ingram, Compton, Sweet, McKenzie, and Gannon voted Nay. |
Vote | By voice vote H 317 passed with a “Do Pass” recommendation. Senators Ingram, Compton, Sweet, McKenzie, Gannon, Werk and Malepeai voted Aye. Senator Hill voted Nay. Senator McKenzie will sponsor the bill on the floor. |
H 339 | Representative Wayne Meyer introduced Phil Hart, Chairman of the Remington Water District Board, who presented H 339. H 339 adds language to 42-3212 Idaho Code to provide that sewer and water district boards will have the power to maintain access to facilities and works by the removal of snow from roads and lands. |
Motion | Senator Compton motioned to send H 339 to the floor with a “Do Pass” recommendation. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote H 339 passed. |
H 327 | John Mackey, United Heritage Financial Group, presented H 327 that would add language allowing a stock insurance subsidiary to issue dividends or distributions to the mutual insurance holding company or any intermediate holding company and the dividends or distributions will be excluded from the Idaho taxable income of recipients. |
Jack Winderall with United Heritage Financial Group, testified that this allows companies controlled under one mutual holding company to transfer money to entities within that holding company that has the best potential for growth. |
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Dennis Johnson, President and CEO of United Heritage Financial Group, testified that United Heritage has a life insurance company, brokerage company, and property and casualty company all under one umbrella. The bill would allow transfers among all three of them without a tax liability. |
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Motion | Senator Ingram motioned to send H 327 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H 327 passed. Senators Ingram, Sweet and Werk will sponsor the bill on the floor. |
Senator Compton reported that with further study on the tax assessment notices, the portion of the notice that estimates the next years tax is confusing. This portion estimates the next years tax, but is only an estimate, so if the actual tax is different from the estimate, taxpayers are questioning their bill. The format and disclosures in the tax notices are not in code. They are policies worked out by the assessors and former Senate Pro Tem Twiggs. It was decided that the Idaho Assessors should consider producing a |
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Meeting adjourned at 5:15 p.m. |
DATE: | March 31, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll was taken. Senator Gannon motioned to accept the minutes of March 24. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
H 279 | Representative Gagner presented H 279 which simplifies income tax withholding for small and medium sized employers. It repeals the “split month withholding” for 75% of businesses affected by “split month withholding,” which was adopted as a revenue acceleration measure in 1983. There are 1050 businesses as of 2003 that are still affected by this. It will increase the threshold in current statute and will affect 750 employers from the split month and return them to calendar month filers. The threshold will rise for employers that had withholding equal to or |
Craig Rasmussen, with Grow Rasmussen LLP, testified in favor of H 279. He stated that the law today creates double work for companies affected. It has forced companies to calculate withholding mid month when most companies work on a calender month. It will help small businesses to be more efficient and will help the Tax Commission as well. |
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Motion | Senator Hill motioned to send H 279 to the floor with a “Do Pass” recommendation. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote H 279 passed. |
Gubernatorial Appointment |
Coleen Grant, a Commissioner with the Tax Commission, has been reappointed to the Tax Commission for a term expiring March 8, 2009 by Governor Dirk Kempthorne. Commissioner Grant is a native of Idaho and resides with her husband of Commissioner Grant explained that each Commissioner is responsible Chairman Bunderson asked if there is a way to implement a withholding Commissioner Grant was asked if the Commission had enough auditors |
Commissioner Sam Haws testified in favor of Coleen Grant’s reappointment. She stated that all of the Commissioners have a very good working relationship. She testified that the CATS system was spearheaded by Commissioner Grant and has become a model program for several other states. |
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Commissioner Larry Watson testified that as an assessor for 25 years he has seen a number of Tax Commissions, and the one that is presently serving is one of the very best. He encouraged the reappointment of Coleen Grant. |
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Chairman Bunderson thanked Commissioner Grant and informed her that the committee will vote on her reappointment at the next meeting. |
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Work Session | Mr. Dan John was questioned on how long it would take for additional Compliance Officers to gear up and collect enough owed revenue to justify hiring additional officers. He replied that in the first year, the Compliance Officer could collect more than they cost. Dan John answered a question about amnesty programs that other Mr. John explained that the $88 million in accounts receivable at this time |
The computer program that Commissioner DuWayne Hammond presented to the committee was reviewed, and each committee member was asked to work with it to be prepared when a revenue bill comes over from the House. |
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The meeting was adjourned at 4:20 p.m. |
DATE: | April 2, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator Gannon |
MINUTES: | Chairman Bunderson opened the meeting at 3:00 p.m. A silent roll was taken. Senator McKenzie motioned to approve the minutes of March 31. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
Motion | Senator Compton motioned to reappoint Coleen Grant to the Tax Commission. Senator Hill seconded the motion. |
Vote | By unanimous voice vote the reappointment of Coleen Grant to the Tax Commission was approved. Senator Ingram will sponsor her on the floor. |
Brian Whitlock, Governor Kempthorne’s Chief of Staff, informed the committee of the actions that the House of Representatives have taken to date on tax issues. A bill that would move to quarterly tax payments has been sent to the When questioned as to the Governor’s opinion on quarterly payments, Mr. A second revenue bill that was in the House Revenue and Taxation A similar bill that would raise the sales tax ½ cent would start July 1, 2004 Mr. Whitlock indicated that the Governor would feel that this is a one time A third bill in the House would increase the tax on cigarettes to $1.00. The increase in cigarette taxes to $1.00 would be split with the original House bill 402 would increase the tax on beer from $4.65 a barrel (31 Mr. Whitlock informed the committee that both of the Governor’s bills Fiscal year 2003 has a $168 million gap to fill. The Governor wanted to Michael Ferguson with the Department of Financial Management, Senator Sweet asked Mr. Ferguson about a report published by the Idaho has programs that have been cut, but the state needs an infusion of Brian Whitlock discussed the Governor’s $.34 cent tax increase on Mr. Whitlock indicated that the Governor does not favor an increase to |
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Chairman Bunderson made a presentation to the committee’s Page, Abby Morehouse, and presented her with a letter of recommendation and Senate watch. He expressed the committee’s thanks for a job well done. |
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Meeting adjourned at 4:45 p.m. |
DATE: | April 7, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Mr. Kelly Kumm (replacement for Senator Malepeai) |
MEMBERS ABSENT/ EXCUSED: |
Senator Werk, Malepeai |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll was taken. Senator Ingram motioned to accept the minutes of April 2. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
Ron Crane, State Treasurer, introduced Cheryl Cook with Key Bank in Utah. She is a financial advisor. Mr. Crane reported to the committee that Idaho issues tax anticipation notes Idaho issued $350 million in tax anticipation notes in 2003. If the state had to Idaho pledges their fourth quarter fiscal year revenues to pay off the Mr. Crane presented a handout from Standard and Poor’s directing the Mr. Crane cautioned the committee that the rating agencies may not give Ms. Cook reported that Idaho’s bonds are very popular and sell quickly. |
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Jeff Youtz with Legislative Services, presented the committee with two handouts. The first was a graph that compared the Governor’s budget recommendation for FY 2003 to using all of the states reserves with a 3.5% reduction. The second handout showed revenue options for FY 2004 including the Governor’s plan. (These handouts are on file with the permanent set of minutes in the secretary’s office.) Mr. Youtz reported that the 2003 budget depends on one time money from Mr. Youtz responded to a question as to what would happen if no negative Mr. Youtz reported that the state is counting on the tobacco settlement A question was asked what options for balancing FY 2003 are available? Mr. In response to a question, Mr. Youtz reported that there is no change in the |
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Meeting adjourned at 4:00 p.m. Any future meetings are subject to the call of the chairman. |
DATE: | April 8, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Sweet, McKenzie, Gannon, Compton, Werk, Kelly Kumm (sitting in for Senator Malepeai) |
MEMBERS ABSENT/ EXCUSED: |
Malepeai, Ingram |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll was taken. Senator Gannon motioned to accept the minutes of April 7. Senator McKenzie seconded the motion. By unanimous voice vote the minutes passed. |
H 400 | Representative Leon Smith presented H 400 that increases the state sales tax from 5% to 5.5% starting July 1, 2003 with a sunset of June 30, 2004. Revenue generated would be $80 million all of which would go to the general fund. It passed out of the House on a 39-31 vote. Representative Smith testified that H 400 is a compromise bill and that is A question as to why the start date was July 1 and not any sooner to help When questioned if the one year sunset will really be one year, |
Pam Eaton, President of the Idaho Retailers Association, testified that the Retailers Association opposes H 400. It will hurt the many retailers that have businesses along the border states of Montana and Washington. In a good economy a tax increase is not felt as much as in a bad economy. Many of her members have experienced bankruptcies and layoffs. They have lowered their prices to encourage consumers to buy and profit margins have dropped. An increase of the sales tax will lower the disposable income consumers spend. When questioned as to possible solutions, Ms. Eaton responded that the Ms. Eaton reported that internet sales are exempt from sales tax and that |
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Mike Ferguson with the Department of Financial Management, reported that sales tax revenue has shown growth over the past several years. In 2000 it was $750 million, 2001 $779 million, 2002 $792 million, 2003 $816 million and 2004 is projected at $848 million. He clarified that because of the July 1 start date, sales tax collections are delayed one month, and H 400 would generate eleven months of revenue or $73 million for FY 2004. One month of revenue or $7 million in FY 2005 would be generated. |
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Motion | Senator Gannon motioned to send H 400 to the Amending Order. Senator Hill seconded the motion. Discussion followed. Senator Gannon feels that the dates on the legislation need to be fixed. Senator Compton reported that he will be attaching an amendment that Senator Werk feels that the ½ cent doesn’t get Idaho anywhere near the Senator Bunderson clarified the effect of the 2001 income tax rate Senator Sweet feels that raising any tax during poor economic times is Senator Compton is opposed to any further cuts, and is opposed to a Senator McKenzie supports sending the H 400 to the Amending Order, Mr. Kumm, who is representing Senator Malepeai, feels that giving the Chairman Bunderson knows that this committee will be very |
Vote | By voice vote H 400 will be sent to the Amending Order. Senators Bunderson, Hill, McKenzie, Gannon, Compton, Werk voted Aye. Mr. Kumm voted Aye. Senator Sweet voted No. Senator Ingram was absent and excused. |
Meeting adjourned at 4:00 p.m. |
DATE: | April 21, 2003 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Chairman Bunderson called the meeting to order at 3:00 p.m. A silent roll was taken. |
H 403aa | Representative Denney presented H 403 as amended which would place the current pending school facilities lawsuit under the constitutionally based Educational Claims Act. It would break the lawsuit into segments small enough to handle and solve. The Educational Claims Act was passed seven years ago but exempted the school district’s lawsuit to enable the suit to be resolved. The lawsuit has been going on for thirteen years and still is no closer to a resolution. |
David High, Deputy Attorney General, testified that he has been in the Attorney General’s office since the start of the lawsuit. He reported that the Idaho constitution does not require the state to fund school buildings. The constitution requires that the state must provide a thorough system of education in a safe environment conducive to learning. School facilities are funded with local money. In the 1960’s the state did start to support the schools more and more. The Educational Claims Act gives the court the right to impose a levy on a Mr. High doesn’t see an end in sight to the thirteen-year lawsuit. This Mr. High responded to a question stating that in the first two years of the Mr. High was asked to explain what the bill really does. He answered Senator Malepeai asked about a Task Force that made Senator Hill asked why section four of the original bill was deleted. Mr. Mr. High further explained that the state would take on the roll of Senator Ingram asked if the bill changes any constitutional issues and Mr. High reported to the committee that the Attorney General’s office |
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Stan Kress, Superintendent of the Cottonwood School District, opposes the bill and he presented three handouts on the history of the lawsuit, school facilities needs assessment, and the Task Force report to the Governor and Superintendent of Public Instruction (handouts are on file with the permanent set of records in the secretary’s office.) The Task Force concluded with four findings and five recommendations. He testified that poorer school districts must levy more than richer Senator Ingram asked why should people in districts with no facility Senator Hill asked if Mr. Kress felt that the state should pay for all Mr. Kress reported that the Task Force had eight members, and five Mr. Kress was questioned as to why he hasn’t closed his unsafe schools. Senator Sweet asked why charter schools can make it without the help of |
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Darrel Deide from the Governor’s office, supports H 403 as amended. He has worked on many bills supporting school facilities. He has been a teacher and superintendent. He has worked on thirty or more school levies. All were successful. He was a part of the Task Force. He feels that the fiscal impact of the Task Force recommendations is too high. He feels that H 403 as amended offers some hope of resolution to the law suit. |
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Geoffrey Thomas, superintendent of the Madison School District testified in favor of the bill. He was a member of the Task Force and is concerned that the recommendations are not given an opportunity to work. He feels that if the legislation passes it will create many more law suits. He feels that the legislation was drafted in a hurried manner and not well thought out. |
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Mike Friend, Executive Director of the Idaho Association of School Administrators spoke in opposition to the bill. He feels that the lawsuit has kept the facility needs in the forefront. He expressed that S 1472 as amended and passed last year was a good step in helping the districts. |
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Committee discussion included comments on the strangeness of turning plaintiffs into defendants, and that the state does not pay for upgrades of poor sewer or water systems in districts. |
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In closing, Mr. Kress reported that there is help for sewer and water systems that do not meet requirements in the way of federal matching dollars and some state dollars. He restated that the legislation will create more lawsuits between the state and districts. |
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Representative Denney testified that there is a need to break the lawsuit down into smaller suits so that the problems can be fixed on an individual basis. He said there are relatively few school districts that have unsafe schools. He also stated that the Madison School District is covered in the existing law and that this bill only covers the districts remaining in the lawsuit. |
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In closing, David High testified that each time the lawsuit has had a hearing in the Supreme Court that part of the suit has been dismissed. He reiterated the Idaho constitution requiring a thorough and uniform system of education. |
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Motion | Senator Hill motioned to send H 403 as amended to the floor with a “Do Pass” recommendation. Senator Ingram seconded the motion. |
Senator Malepeai thinks that the best legislation comes from all parties compromising. Senator McKenzie feels that the legislation will deal with the problem. Senator Gannon pointed out that several of the Task Force recommendations are already dead due to legislation that has failed. |
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Vote | By voice vote, with two no votes, H 403 as amended passed. Senator Little and Senator Hill will cosponsor the bill on the floor. |
Meeting was adjourned at 5:00 p.m. |
DATE: | May 1, 2003 |
TIME: | 8:15 a.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator Gannon |
MINUTES: | Chairman Bunderson called the meeting to order at 8:15 a.m. A silent roll was taken. |
H428 | Senator Goedde presented H 428 which authorizes counties to adopt local option sales taxes. The bill would require that the measure be put to the voters and obtain a 66% approval. The tax must be used for the specific purpose of paying the debt requirement of detention facilities and not less than 50% of the revenue generated would be applied to reduce existing property taxes. There would be a sunset clause of ten years or less. Senator Goedde reported that Kootenai County passed a local option tax Senator Goedde responded to a question on how Streamlined Sales Tax Dan John with the State Tax Commission testified that Streamlined Sales Discussion was held on if this was a shift from property tax to sales tax. It A question was asked if this local option tax is constitutional. Senator Senator Compton testified that to pass the local option tax a county Senator Goedde reported that when Kootenai County had a local option |
Motion | Senator Compton motioned to send H 428 to the floor with a “Do Pass” recommendation. Senator Ingram seconded the motion. |
Senator Sweet voiced his objection to the state fixing county problems. He doesn’t believe that sunset clauses hold up very well and that H 428 is bad policy. Senator Malepeai believes that the counties are extensions of state Senator McKenzie doesn’t like the idea of different counties having Kerry Ellen Elliott with the Idaho Association of Counties, was asked to In closing Senator Compton reported that Kootenai County needed |
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Senator Sweet requested a roll call vote. | |
Vote | By roll call vote H 428 passed with senators Bunderson, Ingram, Compton, Werk, Malepeai voting yes, and senators Hill, Sweet, and McKenzie voting no. |
Meeting adjourned at 9:30 a.m. |
DATE: | May 3, 2003 |
TIME: | 12:50 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
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MINUTES: | Vice Chairman Hill called the meeting to order at 12:50 p.m. A silent roll was taken. |
H 452 | Representative Darrell Bolz presented H452 to provide for an exemption of the additional one percent sales tax on contracts entered into agreement prior to May 1, 2003. Representative Bolz reported that this is a trailer bill to the sales tax increase bill. Contractors that have entered into a contract prior to April 15, 2003 with a Discussion was held on how change orders within the contract would be Representative Bolz informed the committee that the Tax Commission Roger Seiber with Capitol West testified that the language in the bill has |
Motion | Senator Ingram moved to send H 452 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote H 452 passed. |
Motion | Senator Werk moved to develop intent language to not allow change orders signed after the contract was written to be considered part of the original contract and receive the exemption. Senator Malepeai seconded the motion. |
Vote | By voice vote the motion failed. |
H 390 | Chairman Bunderson reported that H390 is basically the same bill as H 194 as amended which the House did not concur with. The title of the bill was changed to make it legal as a new bill. The bill updates references to the Internal Revenue Code (IRC). It The special allowance for 30% first year “bonus depreciation” permitted in Senator Hill testified that it is important to conform to the Internal The committee discussed that this bill was amended in the Senate earlier |
Motion | Senator Hill moved to send H 390 to the floor with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By voice vote with Senator Sweet voting no, H 390 passed. |
Chairman Bunderson informed the committee that the tribal cigarette tax exemption repeal will not be brought up again this session. He informed the committee that after the increase in the cigarette tax yesterday, that many House members had a change of heart on this issue and wanted the chance to level the playing field with retail cigarette sales on reservations and off reservation retailers. |
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The meeting adjourned at 1:50 p.m. |