January 19, 2004
January 21, 2004
January 26, 2004
January 28, 2004
February 2, 2004
February 4, 2004
February 9, 2004
February 11, 2004
February 16, 2004
February 18, 2004
February 20, 2004
February 23, 2004
February 25, 2004
February 27, 2004
March 1, 2004
March 3, 2004
March 5, 2004
March 10, 2004
March 12, 2004
March 18, 2004
DATE: | Jan 19, 2004 |
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 3:00p.m. A silent roll call was taken. Members of the committee were welcomed. Robbin Tyrell, Page to the committee was introduced. Nadine Winberg, Secretary to the committee, was introduced. Vice Chairman Hill introduced Janice Boyd, Tax Policy Specialist with the |
Janice Boyd | Income Tax Administrative Rules
35.01.01.0301 Rule 045 Non-resident Rule 075 Tax on individuals, estates and trusts. Rules 076,077, 079 are deleted. Rates and brackets will be in Rule 075. Rule 078 Tax on trusts electing small business trusts. Discussion on whether there were substantive changes. Ms Boyd clarified that information previously contained in Rules 076, 077, Rule 105 Adjustments to taxable income – additions required of all Rule 108 adjustments to taxable income – additions required only of Rule 120 Adjustments to taxable income – subtractions available to all Rule 193 Health insurance costs and long-term care insurance. Rule 253 Non-resident and part-year resident individuals – additions Rule 254 Non-resident and part-year resident individuals – subtractions Rules 740 and 741are deleted. The natural resource conservation credit Rule 746 Credit for qualifying new employees. Question concerning what Rule 790 is amended to conform the transfer limitations discussed in the Rule 791 is amended to impose on the intermediary the same notification Rule 793 Transfers of credit – in general. Discussion on legislation of Rule 799 Transfer of credit – notification of intended transfer. Discussion on publishing of Rules and how it conforms with State Statute. |
35-0101-0302
Rule 719 Idaho investment tax credit – property tax exemption in lieu of. 35-0101-0303 Rule 872 Reporting and paying state income tax withholding. |
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Motion | Senator Compton moved for approval of Docket 35-0101-0301 and 35-0101-0302, and 35-0101-0303. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Discussion of task force on sales tax exemptions, exclusions, etc. Work of that committee not conclusive but will be documented. Report will contain history, information, & and work of the Tax Commission. It results in judgment of opinions of strengths and weaknesses of exclusions and exemptions. That report will be available to the public after a review by this committee which is expected to happen next week. Hopefully other input will come from the public. |
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Vice Chairman Hill introduced James Husted, Tax Policy Specialist with the Idaho State Tax Commission to review Sales and Use Tax Administrative Rules. |
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James Husted | Sales and Use Tax Administrative Rules
35-0102-0301 Rule 068 Collection of tax. 35-0102-0302 Rules 041, 047, 063,073, 110, 126 are amended because they contain 35-0102-0303 Rule 109 imposes a fee increase proportionate to 6% tax rate. 35-0102-0304 Rule 031 Radio and telecommunications equipment (to correct Rule 037 Aircraft and Flying Services Rule 039 Sale and Purchase of bullion, coins, or other currency Rule 043 Sales price or purchase price defined Rule 058 Sales through Vending machines Rule 105 time and imposition of tax, returns, payments and partial Rule 107 Vehicles and vessels Rule 112 Direct Pay authority |
Motion | Senator Gannon moved to approve Dockets 35-0102-0301, 35-0102-0302, 35-0102-0303 and 35-0102-0304. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the motion passed |
35-0110-0301
Idaho Cigarette and Tobacco Products Tax Administrative Rules Security (bonding) for payment of Taxes. Commission proposes that the 35-0111-0301 Idaho Unclaimed Property Tax Administrative Rules Rule 015 Description of fee corrected to conform to Idaho Code. Question |
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Motion | Senator Sweet moved for approval of Dockets 35-0110-0301and 35-0111-0301. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed |
Senator Hill thanked the members of the Tax Commission for their presentations and indicated the Rules review would be finished on Wednesday, Jan 21. Meeting adjourned at 4:25 p.m. |
DATE: | Jan 21, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill, Senator Malepeai |
MINUTES: | Chairman Bunderson called the meeting to order at 3:07p.m. A silent roll call was taken. Senator Gannon moved that the minutes of January 19 be approved as written. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
RS 13651 | Chairman Bunderson presented RS 13651, Energy Saving Performance Contracting, which clears up ambiguities in the law. This change will include cities so there will be no need for municipalities to interpret the law to include cities. This will save legal fees. |
Motion | Senator Compton moved to send RS 13651 to print. Senator Werk seconded the motion. |
Vote | By unanimous voice vote RS 13651 will be sent to print. |
RS 13673 | Senator Compton presented RS 13763, Transfer of Development Rights, which repeals the requirement for annual reporting. |
Motion | Senator Werk moved to send RS 13673 to print. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote RS 13673 will be sent to print. |
Chairman Bunderson introduced Senator Thorn who served in the senate for 18 years and retired last year. He was welcomed and thanked for his service. Chairman Bunderson introduced Janice Boyd, Tax Policy Specialist with |
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Janice Boyd | Tax Commission Administration and Enforcement Rules
35-0201-0301 Rule 310 Interest Rates Rule 400 Penalties – General Rules Rule 704 Disclosure of information – government agencies and officials 35-0201-0302 Rule 450 Property tax exemption penalty |
Motion | Senator Compton moved for approval of Docket 35-0201-0301 and 35-0201-0302. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed.
Chairman Bunderson introduced Alan Dornfest, Tax Policy Supervisor |
Alan Dornfest | Property Tax Administrative Rules.
35-0103-0301 Rule 313 Assessment of transient personal property. Rule 316 Compliance of continuing valuation program. Explanation of Rule 509 Identification of urban renewal increment and partial exemption. Rule 609 Property exempt from taxation – residential improvements. Rule 802 Budget certification relating to new construction and annexation. 35-0103-0302 Rule 803 Budget Certification – dollar certification form. Amended to 35-0103-0303 Rule 988 Election of qualified property for exemption. Discussion centered
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Motion | Senator Compton moved for approval of Docket 35-0103-0301 and 35-0103-0302 and 35-0103-0303. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion passed |
Senator Bunderson announced there will be no Friday meeting.
This concludes the Rules review. Meeting adjourned at 4:00pm. |
DATE: | Jan 26, 2004 |
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 Werk moved that the minutes of January 21 be approved as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. Chairman Bunderson introduced Bonnie Tolman, Jerome County Tax Assessor to discuss Property Tax Assessment Notices. |
Bonnie Tolman | The Idaho Association of County Assessors and Idaho Association of Counties worked closely with legislators in 1997-98 to voluntarily create a new Assessment Notice format. The present format of the assessment notice is not governed by statute. The IACA and IAC have agreed to make optional by county the inclusion |
Motion | Senator Compton moved that when reasonably accurate current year’s estimated taxes can be made, those estimates should be included on the assessment notice. When reasonably accurate current year’s estimated taxes cannot be determined, the counties may exclude the estimated amounts on the assessment notice, but disclose through the media or other notice why such estimates cannot be made. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion was passed. |
S 1222 | Chairman Bunderson opened the discussion on S 1222, and introduced Ken Harward who provided a summary of the bill. |
Ken Harward | Qualified Energy Service companies can perform audits, reports and services with guaranteed savings to buildings occupied by and for public entities. He then introduced Bret Hunter, Director of Chevron Energy Solutions. |
Bret Hunter | Performance Contracting enables Idaho Public entities the same access to a new bidding process which is currently available to state agencies and facilities. This process specifies a way to finance and implement capital energy improvements and services offered by a qualified energy service company, with the lease/purchase options paid from the realized savings within 25 years. The savings are guaranteed by the energy service company. Discussion centered on savings computation, profit for the energy company (fee based) and that 25 years for payoff seems very long (negotiated). |
Motion | Senator Gannon moved to send S 1222 to the floor with a “Do Pass” recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote S 1222 was approved. |
S1223 | Senator Compton explained that a required annual report relating to transfer of development rights has been found to be unnecessary, burdensome and costly. This bill would remove the requirement for an annual report. The IAC would still furnish information and generate reports when requested. |
Motion | Senator Hill moved to send S 1223 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote S 1223 was approved. |
Chairman Bunderson briefly discussed a study of Tax Rates and Tax Burdens comparing Idaho to other states. Discussion of sales tax and the effects on revenues and the progressive income tax of Idaho. Senator Werk indicated he would be replaced Wednesday by Debbie Meeting adjourned at 4:35 p.m. |
DATE: | Jan 28, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Sweet, McKenzie, Gannon, Compton,, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senator Werk |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. Chairman Bunderson introduced Deborah Spindler who sat in for Senator Werk. Chairman Bunderson then introduced Gubernatorial Appointment to the Board of Tax Appeals, Lyle Cobbs. |
Lyle Cobbs | Mr. Cobbs talked about the function of the State Board of Tax Appeals, and the improvements he would like to see take place. There was a general discussion on the appeals process and notifying people of the options available to them. The committee will vote on Mr. Cobbs’ appointment at the next scheduled meeting. |
RS13809 | Senator Compton and Chairman Bunderson will co-sponsor RS13809, to Clarify County Authority Concerning Grants of Exclusive Franchises for Solid Waste Disposal. Legislation has not been clear on contracts for municipality handling of waste. This will make clear that contracts will be exclusive. There will be a change made by Legislative services and the RS will go forward as a C1. |
Motion |
Senator Compton moved to send to print with the indicated changes. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the RS 13809 will be sent to print |
Chairman Bunderson introduced Alan Dornfest of the Idaho State Tax Commission for an informational presentation on Property Taxes. |
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Alan Dornfest | Mr. Dornfest covered the following topics:
What is property tax? How does the property tax budget and levy system work? What happens when property values increase/decrease? Who pays property tax? How much is paid? How does Idaho compare? Who uses property tax? How do incentives and tax relief measures work? Discussion pertaining to all of the planned topics of conversation was Chairman Bunderson thanked Mr.Dornfest for sharing his expertise and There will be no Friday meeting The meeting adjourned at 4:35 p.m. |
DATE: | Feb 2, 2004 |
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 3:00p.m. A silent roll call was taken. Minutes from both January 26 and January 28 were presented for approval. Senator Ingram motioned to approve the minutes of Jan 26. Senator Malepeai seconded the motion. By unanimous voice vote the minutes were approved. Senator Malepeai motioned to approve the minutes of Jan 28. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
Motion | Senator Ingram motioned to Reappoint Lyle Cobbs to The Board of Tax Appeals. Senator Compton seconded the motion. |
Vote | By unanimous voice vote the reappointment of Lyle Cobbs was approved. Senator Ingram will sponsor him on the floor. |
RS13806 | Senator Ingram presented RS13806 which would authorize ITD Board to allow the installation of Intra-city Light Rail Systems upon certain highways. There was discussion concerning extent of involvement. Cities, counties, and the state would be involved, and existing funds would be used. Allows existing authorities to create light rail systems. It was indicated that while the language is general and pertains to all of Idaho, the point is revitalization of downtown, so the primary target is Boise. This is not a mandate, it is permissive. |
Motion | Senator Werk motioned to send RS13806 to print. Senator Compton seconded the motion. |
Vote | By unanimous voice vote the motion carried. |
Jason Hancock | Chairman Bunderson introduced Jason Hancock, Budget and Policy Analyst at Legislative Services, to talk on the subject of Joint Economic Development and Revenue Assessment Committee – Key Trends in Idaho’s Economy and Tax Revenues. Chairman Bunderson thanked Mr. Hancock for his presentation and Meeting adjourned at 4:30 p.m. |
DATE: | Feb 4, 2004 |
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 3:07p.m. A silent roll call was taken. Senator McKenzie moved that the minutes of February 2 be approved as written. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved. |
S1254 | Chairman Bunderson introduced Ken Harward, IAC to discuss proposed changes to S1254 allowing non-exclusive as well as exclusive contracts for Solid Waste Disposal Contracts. The change would clarify that counties and cities may continue to operate solid waste systems by exclusive or non-exclusive means. Because of the changes it was requested that this bill be held and a new RS presented at the next committee meeting. |
Motion | Senator McKenzie moved to hold S1254 and hear a new RS on Monday with the changes discussed. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the bill will be held. |
RS13916 | Senator Compton introduced RS13916, Sales and Use Tax Information about County of Sale and Dollar Amount of Sales per County. This would provide counties with detailed sales and use tax information which could be used to measure growth. |
Motion | Senator Hill moved to send RS 13916 to print. Senator Werk seconded the motion. |
Vote | By unanimous voice vote RS 13916 will be sent to print. |
Chairman Bunderson reported on his presentation to the Idaho Association of Counties and shared a comparative analysis of property taxes by county. This can be used by the counties to create a historical information base to assess trend analysis in evaluating public policy decisions affecting economic development in each county. |
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Chairman Bunderson gave a brief review of the Transportation Bonding Task Force meeting and distributed “Summary of Matters Discussed” minutes of the January 23, 2004 meeting. He pointed out that many regions of the state have transportation infrastructure needs critical to promote local and state economic development. Cash flow from federal and state fuel taxes is not adequate to meet many of these critical needs. The concept being worked on is to leverage a small percentage of federal Senator Bunderson said that in two weeks the Task Force will produce a The meeting adjourned at 3:55p.m. |
DATE: | Feb 9, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill |
Chairman Bunderson called the meeting to order at 3:00p.m. Because of time constraints the order of the meeting was changed to begin with the Annual Report from the Tax Commission. Chairman Bunderson introduced Dewey Hammond, Chairman of the Tax Commission, who in turn introduced Sam Haws. |
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Sam Haws | Ms. Haws presented information in support of the administration efficiencies of the Tax Commission including: Implementation of Sales and Cigarette tax increase, Providing the Sales Tax Exemption Task Force Committee with a final report on sales tax by state, and taking over administration of Kootenai County Local Option Tax. |
Colleen Grant | Ms. Grant reported that the new collections system has enabled the department to maintain a high level of recovery even in the face of cut-backs. She reported that during the hiring freeze there was a small downturn, but with the new compliance staff, collections have exceeded expectations. She also discussed audit and training changes that will enhance productivity and create more well rounded staff. |
Dewey Hammond |
Mr. Hammond provided the committee with a hand out high-lighting the overall accomplishments and changes experienced over the last year (attch). Of special significance was New Revenue of $9,287,480 brought in at a cost of $605,505 as a result of legislation approved July 1, 2003. Also a letter from Larry Watson with the Tax Commission was referenced and a copy will be provided at Wednesday’s meeting and included with these minutes. Chairman Bunderson thanked the commissioners for their report. |
Minutes | Senator McKenzie motioned to accept the minutes from Feb 4 with corrections. Senator Sweet seconded the motion. By unanimous voice vote the minutes of Feb 4 were approved as corrected. |
RS13941 | Solid Waste Disposal Systems Contracts. New language has been incorporated to authorize the operation and maintenance of systems by exclusive or non-exclusive means. Discussion concerning reason for this legislation and its effect on small business. Sen Bunderson explained that in the past businesses have been harmed by new business coming into an area and eroding the business base which had been grown by the previous carrier. The new comers would take over certain profitable portions of the business while leaving the non-profitable work. Had the original contractor known there was no exclusivity to the contract, they would have bid it differently. This legislation would prevent the “cherry picking” from happening. He could not see that it would harm small businesses as long as there was open bidding, allowing the contract to be bid on the same terms. Per Senator Compton whether the contract is exclusive or not will be left to the cities. It is only necessary that bidders know what the rules are before the contract is bid. |
Motion | Senator Ingram moved to send RS13941 to print. Senator Werk seconded the motion. |
Vote | By unanimous voice vote RS13941 will be printed. |
The meeting adjourned at 3:45p.m. |
DATE: | February 11, 2004 |
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 |
Chairman Bunderson called the meeting to order at 3:05 p.m. A silent roll call was taken. Senator Noh was introduced to present RS13995. |
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RS13995 | Senator Noh presented RS13995 which adds to Local land use planning in wild land fire hazard areas requiring analysis to minimize risk when new development occurs in wild fire susceptible areas. Discussion about county review and impact to firefighting districts, insurance, etc. These questions should be addressed when the bill comes back to the committee for review. |
Motion | Senator Compton motioned to send RS13995 to print. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion carried. |
H 477 | Ted Spangler of the Idaho Tax Commission presented H 477 which makes technical amendments and updates to the property tax statues. This bill would remove property tax codes that are no longer required and clarify exemptions for mobile homes. Also replace the requirement for a rule when a procedure would be more efficient. |
Motion | Senator Compton moved to send H477 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H477 passed. Senator Compton will sponsor the bill on the floor. |
H 478 | Dan John of the Idaho Tax Commission presented H 478 which makes changes to permit taxpayers to use private delivery services, changes the month of the applicable federal rate used to index the interest rate on taxes and refunds, requires that a foreclosure tax lien must be brought in the county in which the property is located, and deletes obsolete references to constables and deputies. |
Motion | Senator Gannon moved to send H478 to the floor with a “Do Pass” recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote H478 passed. Senator Gannon will sponsor the bill on the floor. |
H 479 | Ted Spangler presented H 479 which resolves a conflict about reporting unclaimed funds under any life or endowment insurance policy or annuity contract, clarifies the ten-year time frame after which property escheats to the state, and adds a requirement that the state tax commission record the name and last known address of the person entitled to the property within 60 days of transferring excess funds from the unclaimed property account. |
Motion | Senator Werk moved to send H479 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote H479 passed. Senator Werk will sponsor the bill on the floor. |
H 481 | Dan John presented H 481, which clarifies the limitation on the exclusion for certain dividends, corrects a cross-reference to the Internal Revenue Service, reflects changes to the federal Social Security Act, clarifies deduction for household and dependent care services, and addresses Lottery Commission withholding of taxes. |
Motion | Senator McKenzie moved to send H481 to the floor with a “Do Pass” recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote H481 passed. Senator McKenzie will sponsor the bill on the floor. |
Brad Foltman | Chairman Bunderson introduced Brad Foltman, Administrator for the Division of Financial Management, who gave an overview of the law regarding spending limitations under I. C. 67-6803. Mr. Foltman explained the difference between unadjusted and adjusted percent limitations on Idaho’s General Fund Expenditure Limitations and the effect the exemption of all one-time expenditures has on the General Fund appropriations. After this overview there was a discussion of several pending House Joint Resolutions that pertained to amending Idaho’s Constitution. HJR 10 restricts the ability of future legislatures to create or increase a tax rate or remove or reduce a state tax exclusion, exemption, credit or deduction. Such change would require a two-thirds vote of the legislature if HJR 10 is approved. We were told HJR 7, which has different restrictions, was also still alive. |
Minutes | Senator Werk moved to accept the minutes Feb 9 as written. Senator McKenzie seconded the motion. By voice vote the minutes passed as written. The meeting adjourned at 4:30 p.m. |
DATE: | Feb 16, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senators Sweet, McKenzie |
MINUTES: | Chairman Bunderson called the meeting to order at 3:05. With only one hour available because the senate scheduled an afternoon session, and conflicting schedules for presenting senators, it was necessary to rearrange the agenda. Senator Compton began with S1284. |
S1284 | Senator Compton presented S1284 which provides counties with information about sales tax being collected in their counties thereby enabling the measurement of economic growth. Speaking in favor of the bill was Senator Noh and Kent Just of Twin Falls Chamber of Commerce. Both indicated the need for accurate statistical information which could reasonably be provided with current available software. Businesses that have outlets in multiple counties are lumped into a multi county category, and out of state businesses are lumped into an out of state category. These groupings do not show tax information which would be useful to the counties. Pam Eaton, President of the Idaho Retailers Association, was concerned that there would be significant cost in upgrading the software, and since the Streamlined Tax will likely be implemented at some time, most retailers felt it would be more cost effective to upgrade for both at the same time. Also, transition time would be necessary. It was agreed that more work needs to be done on this, and that amendments are necessary. Dan John, Idaho Tax Commission said the commission’s estimated cost to implement this law would be $418,000. |
Motion | Senator Compton moved to send S1284 to the amending order. Senator Werk seconded the motion |
Vote | By unanimous voice vote S1284 was passed to the 14th order of business. |
S1269 | Senator Ingram presented S1269 which would allow Intra-city light rail systems. Phil Kushlan, CCDC discussed the favorable economic growth which would be made possible by a mass transit system. It was noted that the language of this bill is permissive and only sets the stage for the possibility of implementation. A trailer bill would be necessary for actual implementation. |
Motion | Senator Werk motioned to send S1269 to the floor with a Do Pass recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote S1269 was approved. |
H554 | Representative Trail presented H554 which relates to notice inviting bids for counties. He introduced Walter Steed who discussed the present bid notification process and the proposed shortening of bid notice requirements for small or non-complex projects. Discussion centered on the possibility that shorter time frames could lead to sole source procurements which generally cost more. |
Motion | Senator Ingram motioned to send H554 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By voice vote the motion passed with Senator Gannon voting nay. Senator Ingram will sponsor the bill. |
Minutes | Senator Malepeai moved to approve the minutes of February 11. Senator Ingram seconded the motion. By unanimous voice vote the minutes were approved. Chairman Bunderson indicated those items not addressed at this The meeting adjourned at 4:00p.m. |
DATE: | February 18, 2004 |
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 3:00p.m. A silent roll call was taken. Senator Hill moved to accept the minutes of Feb 16 as written. Senator Gannon seconded the motion. |
H505 | Susan Renfro, Director of the Board of Tax Appeals presented H505 which relates to property tax appeals. The bill now defines the time frame for appeal from deficiency determinations and deletes reference to a statute that is no longer applicable to tax appeals. |
Motion | Senator Gannon moved to send H505 to the floor with a “Do Pass” recommendation. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote H505 passed. Senator Gannon will sponsor the bill on the floor. |
H506 | H506 was also presented by Ms. Renfro. This bill relating to property tax appeals, clarifies the procedure to file an appeal to district court and provides a technical correction. |
Motion | Senator McKenzie moved to send H506 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote H506 passed. Senator McKenzie will sponsor the bill on the floor. |
S1298 | Jerry Mason of AIC presented S1298 relating to Solid Waste Disposal Systems which authorizes county commissioners and/or cities to operate and maintain systems by exclusive or nonexclusive means. He emphasized that this is not new legislation, but a clarification of existing legislation which had been muddled by a court ruling. Then Steve Purvis, Director of Special Projects for the City of Boise discussed the positive aspects of long term contracts in the sanitation industry. Chairman Bunderson asked if there was anyone present in opposition to |
Motion | Senator Compton moved to send S1298 to the floor with a “Do Pass” recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote S1298 passed. Senators Bunderson and Compton will sponsor the bill on the floor. |
Chairman Bunderson introduced Dr. James Weatherby, Professor at BSU, to report on the Property Tax Task Force findings. The mission of the task force was to compile data and formulate an educational document to be shared with the legislature and other entities seeking property tax information. The survey focused primarily on residential property assessment. Idaho and 17 other states and two provinces were compared to discover whether Idaho’s property tax system was unfairly burdensome to taxpayers. Dr. Weatherby walked the committee through the report and answered questions. Based on the data provided by the survey and other materials, it was concluded that Idaho’s property tax system compares well. Chairman Bunderson thanked Dr. Weatherby for his report. The meeting adjourned at 4:35 p.m. |
DATE: | February 20, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, McKenzie, Gannon, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill, Senators Compton & Sweet |
Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. The committee presented the outgoing page, Robbin Tyrrell with a parting gift and a letter of recommendation. The new page, Alena Shea was introduced. |
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H536 | Dewey Hammond, standing in for Brian Whitlock, presented H536 which removes the current sunsets on income tax credits for qualified research and development expense, and the credit for qualified broadband equipment. There was a discussion concerning the long term effects of the decision to make sunset credits permanent. |
Motion | Senator Gannon moved to send H536 to the floor with a Do Pass Recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Gannon will sponsor the bill on the floor. |
Sub-motion | Senator Werk motioned to send the bill to the 14th order for amendment. Because of the difficulty in removing exemptions once granted permanence, the amendment would be to provide a sunset time frame, enabling continued monitoring. The sub-motion was seconded by Senator Malepeai |
Vote | Voice vote was nay with Senators Werk and Malepeai voting aye. |
Chairman Bunderson directed the committee return to the original motion. There were no dissenting votes. |
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H567 | Dewey Hammond presented H567 which removes the limitation and allows the deduction for the full amount of the premiums paid for long term care insurance for the taxpayer, the taxpayer’s spouse, or employee if the premium is not otherwise deductible. This bill will reduce the general fund revenue by $500,000. annually. |
Motion | Senator Ingram moved to send H567 to the floor with a Do Pass Recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Ingram will sponsor the bill on the floor. |
Minutes | Senator Ingram moved to approve the minutes of February 18. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
Report | Chairman Bunderson opened the discussion of The Joint Legislative Sales Tax Exemption Task Force Report by stating that the Task Force Report was presented as information with no recommendations as the committee was divided in its opinion. He then introduced Dr. Stephen Cooke, Associate Professor of Agricultural Economics at UI. Dr. Cooke presented various tax scenarios which were meant to be based on the task force findings, however as these findings were inconclusive, Dr. Cooks’ models were based to some extent on guess work. The presentation centered on what different levels of taxation on various services would provide in tax revenues, and what the net effect would be on business competitiveness, and/or household income. The preliminary results suggest that extending sales tax to services (including medical services) and lowering the rate to 4% would close the state’s $100 million structural deficit. The meeting adjourned at 4:20p.m. |
DATE: | Feb 23, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill, Senator Sweet |
Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. |
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S1307 | Senator Noh presented S1307 which would provide that the analysis of known wild-land fire hazards shall be a component in the comprehensive planning process of a planning, or planning and zoning commission. This would require local governments to address the destruction of private property resulting from residential and commercial construction in heavily forested areas. Bruce Alcott of the Idaho Fire Chiefs Association discussed the cost of fighting fires compared with the cost of planning preventative measures. Discussion indicated there was concern with the impact to local governments in implementing this bill. Cities and Counties both indicated they were neutral on this bill. Additional discussion centered on the costs to local governments’ already stretched resources and that federal guidelines exist which address this issue. |
Motion | Senator Gannon moved to hold the bill in committee as it needs more work. Senator McKenzie seconded the motion. |
Sub motion | Senator Compton moved to send the bill to the 14th order for amendment. Senator Malepeai seconded the motion. |
Vote | By unanimous voice vote the substitute motion to amend S1307 passed. Senators Compton and Malepeai will sponsor the amendment. |
H542 | Representative Eskridge presented H542 which provides for a greater allocation of property taxes to cities that permit a power plant to locate within or near such city. Discussion was primarily concerned with assuring a fair allocation of funds where power plant facilities are built. |
Motion | Senator Compton moved to send H542 to the floor with a Do Pass recommendation. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Compton will sponsor the bill on the floor. |
H610 | Senator Goedde presented H610 to provide an income tax credit for charitable contributions made to Children’s Village INC. or its foundation. |
Motion | Senator Gannon moved to send H610 to the floor with a Do Pass recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Goedde will sponsor the bill on the floor. |
H601 | Ken Craft of the Blind Services Foundation presented H601 which would permit the Blind Services Foundation to make tax exempt purchases of low vision equipment to be given to residents of the blind and visually impaired community. While there was no opposition, there was some concern about adding to the already long exemption list without providing sunset dates. |
Motion | Senator Ingram moved to send H601 to the floor with a Do Pas recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Ingram will sponsor the bill on the floor. |
Minutes | Senator Werk moved to approve the minutes from Feb 20 with a change showing that the substitute motion made on H536 was for the purpose of providing a sunset date because of the difficulty in removing permanent exemptions. Senator Compton seconded the motion. By unanimous voice vote the minutes were approved with change. |
The meeting adjourned at 4:10p.m. |
DATE: | February 25, 2004 |
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 3:00p.m. A silent roll call was taken. Senator McKenzie moved to approve the minutes of February 23 as written. Senator Gannon seconded the motion. By unanimous voice vote the minutes were approved. |
S1334 | Senator Ingram presented S1334 which would repeal the automatic lien provision which requires counties to place a lien on the real property in which fund applicants reside. Those medically needy seeking financial assistance from the county indigency fund would no longer automatically have a lien placed on their homes. Senator Ingram read a letter demonstrating the difficulties faced by those without medical insurance, and the associated devastating financial impact when medical attention is needed. He then introduced Sharon Caylor who testified in favor of the bill. She shared her experience with the county, wishing to set up a payment plan, but instead being told that to get help a lien would be placed against her property. Rather than accept the lien she had to apply to charitable organizations. In her presentation she wondered why the lien is immediately imposed. The standard practice is to provide care, bill the customer, then if payment is not received, resort to the lien process. No other state requires this turn over of property in times of medical need. Opposition to the bill was presented by Todd Lakey, Chairman of the Canyon County Board of Commissioners, who spoke to the issue of personal responsibility. Discussion centered around tactics involved in obtaining financial assistance, the foreclosure rate (none), and compromises made in order to collect without foreclosure. There were still many questions to be asked and answered, and because the senate was scheduled to return to the floor at 4:30, limited time. It was decided to continue the discussion at Friday’s meeting. |
H537 | Dan John of the Idaho Tax Commission presented H537 relating to Income Tax Withholding. This bill changes the time when Idaho employers must file income tax withholding returns from quarterly to annually. |
Motion | Senator Hill moved to send H537 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Hill will sponsor the bill on the floor. |
H538 | Dan John presented H538, relating to State Replacement of Property Tax Revenues on Agricultural Equipment. The bill will change the distribution of an amount of state funds intended to replace revenues lost when agricultural equipment was exempted from property tax in 2001. The amount that was previously paid from the state refund account, will now be paid from revenue received from the Sales Tax Act. |
Motion | Senator Compton moved to send H538 to the floor with a Do Pass recommendation. The motion was seconded by Senator Hill. |
Vote | By unanimous voice vote the motion passed. Senator Ingram will sponsor the bill on the floor |
Report | An informational Overview of the Alcohol Beverage Business and Structures Created by Idaho Law, Fiscal Effects and Analysis for Proposed Legislation was presented by Dan Chadwick, IAC and Ken Harward, AIC and Cathy Holland Smith, Budget Analyst for LSO. They reviewed the white paper prepared for the purpose of creating two proposed pieces of legislation to change the method of taxing alcoholic beverages, and to help finance issues created by alcohol abuse such as youth protection, crime, and health costs. The first bill will change the basis for which beer and wine excise tax is based from volume to price. The change will not result in a change in excise revenue. The second bill would apply a two percent surcharge on beer and wine, similar to that which has been applied to spirits. |
The meeting adjourned at 4:30. |
DATE: | February 27, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, McKenzie, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill, Senators Sweet, Gannon |
MINUTES: | Chairman Bunderson called the meeting to order at 3:05 p.m. A silent roll call was taken. It was announced that Senator Compton will be absent next week and will be replaced by Freeman Duncan. Senator Malepeai moved to accept the minutes of Feb 25 as written. Senator Werk seconded the motion. By unanimous voice vote the minutes were approved. |
H543 | Representative Langhorst presented H543, which clarifies the definition of those transactions which qualify for an exemption from last year’s .01 cent increase in the state sales tax. It provides for contracts entered into prior to the effective date of the increased sales and use tax, declaring an emergency and providing retroactive application. This bill is essentially a trailer to H452, passed last year. H452 provided refunds to contractors, but not to anyone else who may have entered into purchase agreements for goods which were delivered after the tax increase went into effect. H543 will extend the refund to these other purchase agreements. Dan John of the State Tax Commission answered questions about the cost of the refund to the general fund, what the contract must specify in terms of tax rate in order to allow the refund, and the process involved in requesting the refund claims. Discussion centered on legislative intent. Also discussed was the fairness, or look of fairness of retroactive tax adjustments. |
Motion | Senator Compton moved to hold the bill in committee. There was no second. |
Motion | Senator Malepeai moved to send H543 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. Senator Compton called for a Roll Call Vote. |
Vote | By roll call vote the motion passed. Senators Ingram, McKenzie, Werk and Malepeai voted aye. Senators Bunderson and Compton voted nay. Senator Malepeai will carry the bill on the floor. |
H720 | Dan John of the State Tax Commission presented H720, which is the annual bill to update references to the Internal Revenue Code (IRC). Senator Werk was concerned that there would be more bills based on federal tax cuts that would cost the state money because of state conformance to federal code. |
Motion | Senator Compton moved to send H720 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator McKenzie will carry the bill on the floor. Chairman Bunderson stated that S1334, The Lien Provision Bill that was The meeting adjourned at 3:55p.m. |
DATE: | March 1, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS
PRESENT: |
Chairman Bunderson, Senators Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill, Senator Ingram |
MINUTES: | Chairman Bunderson called the meeting to order at 3:05p.m. A silent roll call was taken. Senator Malepeai moved to approve the minutes of February 27 as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
Chairman Bunderson addressed a group from ICAN concerning the postponement of S1334. He explained why the hearing was postponed and that S1334 will be heard Wednesday March 3. |
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H649 | Representative Cuddy presented H649 which allows manufactured homes to be taxed in the same manner as stick built homes. Currently the manufactured homes are taxed as personal property for the entire year of the first year of occupancy. This bill will allow the first year to be taxed as real property, and prorated for the period of occupancy just as stick built homes are. |
Motion | Senator Gannon moved to send H649 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Gannon will sponsor the bill on the floor. |
H663 | Representative Cuddy presented H663 which clarifies payment and use of taxes collected on forest land which had used the forest and bare land method of taxation. Marilyn Knighton, Gem County Treasurer, said currently if deferred timber tax is paid upon sale of property, the money must be held until the new buyer decides if they want to further defer payment. If they do want to continue the deferral, the money must be returned. The county treasurers want that money to be applied as tax (which it is). If the new buyer wants to defer, they should apply for their own deferral. |
Motion | Senator Malepeai moved to send H663 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Malepeai will sponsor the bill on the floor. |
H516 | Dan John presented H516 which relates to property tax relief, making changes to the circuit breaker and “50-50” homeowners tax reduction provisions of the Idaho Code. The bill makes several changes to clarify and simplify the administration of the property tax reduction procedures. |
Motion | Senator McKenzie moved to send H516 to the floor with a Do Pass recommendation. Senator Sweet seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator McKenzie will sponsor the bill on the floor. The meeting adjourned at 3:45p.m. |
DATE: | March 3, 2004 |
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. |
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S1384, RS14220 | Senator Cameron presented S1384 and RS14220 (removes references to cities and adds constitutional references) which authorizes a county-based intermodal commerce authority. The local commerce authority shall not have taxing authority, nor eminent domain rights. It is designed to create, stimulate and advance commerce, economic development in the local jurisdiction, and for all Idaho. Senator Cameron would like S1384 to be held and RS14220 to be sent to print. John Watts of Watco reviewed the RS emphasizing counties may enter |
Motion | Senator Hill moved to send RS14220 to print and refer the subsequent bill directly to second reading on the floor, and hold S1384. The motion was seconded by Senator Duncan. |
Vote | By unanimous voice vote the motion was approved. Senator Cameron will sponsor the bill on the floor.
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S1388 | Stuart Davis presented S1388 which is intended to reduce the need for litigation and speed the process of resolution of claims by property owners against governmental entities for the taking of a property interest. Mr. Davis introduced Bill Gigray with the Idaho Association of Highways, who helped craft the bill. Mr. Gigray stated that this bill deals with the process of inverse condemnation which he defined as the reverse of eminent domain. This bill would provide that claims are first filed with the government entity who must then, in a 90 day period, determine whether it agrees that an interest in property was taken. This bill proposes to allow the claim be made with the government entity prior to court action so that if possible, disputes may be resolved without having to resort to court action. The bill does not take away any private property rights or right to litigation. Discussion centered on time constraints. It was explained in terms of tort actions, and statutes of limitation. |
Motion | Senator Werk moved that S1388 be held over for a full hearing on Friday. Senator Malepeai seconded the motion. |
Substitute Motion |
Senator Duncan offered a substitute motion to send S1388 to the floor with a Do Pass. The motion was seconded by Senator Gannon. |
Vote | By voice vote the substitute motion passed with Senator Werk voting nay. Senator Duncan/Senator Compton will carry the bill on the floor. |
H661 | Representative Sheperd presented H661 which provides for an order of dissolution of a hospital district and to provide for the property and distribution of assets and notification of the state controller. No Idaho hospital district has dissolved, however the Shoshone Hospital District has declared bankruptcy and dissolution is likely. This would allow the board of county commissioners to continue to levy the tax on the district until the debt is paid so that other county budgets would not have to be liable for the debt. |
Motion | Senator Hill moved to send H661 to the floor with a Do Pass recommendation. Senator Ingram seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Hill will sponsor the bill on the floor. |
S1334 | S1334 returned to the committee for continuation of the hearing begun February 25. Senator Ingram opened the hearing by introducing Nicole LeFavour of ICAN. She began by stating that Idaho is the only state that automatically places a lien on anyone requesting county assistance with medical bills. She then asked Karen McWilliams to testify on her experience with the lien process. She read the story of a woman who had a lien placed on her address, which turned out to be a women’s homeless shelter. She indicated the lien process prevents indigent patients from ever being able to recover from the financial burden placed on them because liens affect credit rating and the ability to buy or sell real property. Next Marina Schwarzbach testified that the lien placed against her and Senator Ingram explained the history of the catastrophic health care Senator Duncan offered an explanation of general liens and suggested Teresa Wolf, Nez Perce Social Services, testified that counties take John Waddell testified that the liens that have been filed against him will Nicole LeFavour ended by noting that this process adds financial Chairman Bunderson then closed the hearing by indicating that there |
Motion | Senator Werk moved that S1334 be sent to the floor with a Do Pass recommendation. The motion was seconded by Senator Malepeai. |
Vote | By roll call vote with Senators Ingram, Sweet, Werk and Malepeai voting aye and Senators Bunderson, Hill, McKenzie, Gannon and Duncan voting nay, S1334 failed to carry. The bill will be held in committee. Senator Ingram agreed to review the bill this summer with any members The meeting adjourned at 4:50 p.m. |
DATE: | March 5, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, McKenzie, Gannon, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Senators Sweet, Compton |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. Senator Malepeai moved to approve the minutes of March 1 and March 3 as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
H724 | Jack Winderl of United Heritage presented H724, which amends and repeals existing law to revise the rate of the premium tax, and to revise the percentage of assets required for reduced premium taxes. The bill simplifies the method used to compute payment of premium taxes by insurance carriers doing business in Idaho. Current statutes impose different premium tax rates to insurance carriers doing business in Idaho, either at 1.4% or 2.75%. This bill modifies the present structure by adjusting the premium tax, over a six-year time frame, to single premium tax rate of 1.5%. This will make Idaho more competitive in its efforts to attract insurance carriers to locate in Idaho. The premium tax credit is currently dependent on investing 25% of reserve in Idaho investments. This bill will lower that percentage by 5% per year over a period of six years until it is 5% in 2009. The change to a single premium tax rate for all insurance carriers will also eliminate legal and financial exposure to the State created by the dual rate system. The fiscal impact to the state general fund is estimated to be positive over the six-year implementation period. Senator Stegner explained the current two tier system and its negative Robert Baldwin of Metropolitan Life added that the lower tier of taxes is |
Motion | Senator Hill moved to send H724 to the floor with a Do Pass recommendation. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Stegner will carry the bill on the floor. |
H739 | Representative Ken Roberts presented H739 which provides a procedure for determination and collection of property tax moneys that were improperly claimed or approved for the fifty-fifty homeowner’s property tax exemption and to provide application of moneys collected to the three percent property tax cap. |
Motion | Senator Malepeai moved to send H739 to the floor with a Do Pass recommendation. Senator Werk seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Malepeai will sponsor the bill on the floor. |
H753 | H753 was considered by the committee. The purpose of this legislation is to add a credit for contributions to the Women’s and Children’s Alliance on Idaho Income Tax Forms. The Women’s and Children’s Alliance is a nonprofit organization that provides secure shelters, transitional homes, counseling, case management and comprehensive supportive services to women and children escaping domestic and/or sexual violence. |
Motion | Senator Malepeai moved to send H753 to the floor with a Do Pass recommendation. Senator McKenzie seconded the motion. |
Vote | The motion passed by voice vote with Senators Hill and Werk opposed. Senator Ingram will sponsor the bill on the floor. |
The meeting adjourned at 4:00p.m. |
DATE: | March 10, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Senators Ingram, Sweet, McKenzie, Gannon, Compton, Werk, Malepeai |
MEMBERS ABSENT/ EXCUSED: |
Vice Chairman Hill |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. Senator Malepeai moved to approve the minutes of March 5 as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. |
H651aa | Brian Whitlock from the Office of the Governor, presented H651aa which amends the Idaho income tax credit for new employees. An expanded credit of $1,000 will be available for any business that adds new employees whose annual earnings average $12.50 per hour or more and who are eligible to receive employer provided coverage under an accident or health plan. The existing credit of $500 for new employees in a natural resource based enterprise is retained unchanged. The increased credit will be available for employers’ taxable years beginning on and after January 1, 2004. Discussion centered on the level of impact $12.50 (as amended by the House) would have on the economy vs. $15.50 (as originally proposed). The lower rate would not provide employees the discretionary income required to purchase health benefits, and in fact, some people earning $12.50 might still be eligible for CHIP and other benefits available to low income earners. It was stated the intent of the bill was to encourage employers to create higher paying jobs and by lowering the wage to $12.50, that purpose was lost. Roger Sherman of United Vision for Idaho, testified that he supported the Mia Crosthwaite representing Catholic Charities, said that any new jobs |
Motion
Substitute |
Senator Ingram moved to send H651aa to the floor with a Do Pass recommendation. There was no second.
Senator McKenzie made a substitute motion to move the bill to the 14th |
Vote | By voice vote the substitute motion to send the bill to the 14th order passed with Senators Sweet and Ingram voting nay. Senator McKenzie will sponsor the amendment on the floor. |
H756 | Representative Gagner and Senator Gannon presented H756 which relates to the Idaho Building Code Act. It would provide that local governments that adopt building codes, accept the 2003 International Building Code, Energy Conservation Code and the International Mechanical & Fuel Gas Codes in addition to the codes referenced in the existing legislation. This would keep the International Codes intact as a family of codes. There was discussion about whether covering five to 16 unit buildings under the sprinkler requirements was going far enough, or if three and four plex units should also be included. Dwight Perkins, IAPMO, testified that HVAC wants to use their uniform Ken Baker, AIC, spoke in favor of the bill, but suggests education for Dennis Tanikuni, Farm Bureau, was concerned about private property John Eaton, Idaho Building Contractors Association, supports the bill and Bruce Allcott, Idaho Fire Chiefs, strongly disagrees with the exemption Ken Harward indicated that AIC supports the bill as written. Ron Anderson joined in the opposition to the exemption noting that from Jack Rayne spoke in support of the bill saying that when sprinklers are Jenifer Gilliland of the City of Boise also spoke in favor of the bill. Final discussion summarized the issue as a matter of not whether the bill |
Motion | Senator Werk moved to send H756 to the floor with a Do Pass recommendation. Senator Compton seconded the motion. |
Vote | By unanimous voice vote the motion passed. Senator Gannon will carry the bill on the floor. |
As the Senate was scheduled to return to the floor at 4:00 p.m., the hearing for H780 was post-poned until March 12. The meeting adjourned at 4:20 p.m. |
DATE: | March 12, 2004 |
TIME: | 3:00 p.m. |
PLACE: | Room 426 |
MEMBERS PRESENT: |
Chairman Bunderson, Vice Chairman Hill, Senators Ingram, McKenzie, Gannon, Compton, Werk |
MEMBERS ABSENT/ EXCUSED: |
Senators Sweet, Malepeai |
MINUTES: | Chairman Bunderson called the meeting to order at 3:00p.m. A silent roll call was taken. Senator McKenzie moved to approve the minutes of March 10 as written. Senator Ingram seconded the motion. By unanimous voice vote the minutes were approved. |
H780 | Representative Denney presented H780 which amends existing law relating to the Bond Levy Equalization Support Program to prohibit utilization of assistance pursuant to the program for projects previously subsidized by state grants. The existing bond equalization program is being augmented with a loan program, offering participants a choice. This bill allows districts to choose the program that is right for them. It also clarifies that only one option at a time can be used (no double dipping). Senator Cameron testified that the two options, which were created at different times, should each be available to school districts so that they can choose the most financially advantageous option. He had some amendments that he would like to see incorporated. He wants to be sure that those districts who chose to participate in the loan program, with money being paid up front, will not be penalized for being willing to commit to the only option available at the time. Now the bond equalization program, which pays out over the life of the bond, is available, and it may make more sense to some districts that chose the loan program to change to the bond program. They should be able to choose, but not be able to choose both. The language in his proposed amendment will clarify that choice. It was stated that if the bill does go to the 14th order it will not remain there. |
Motion | Senator Hill moved to send H780 to the 14th order for amendment. Senator Compton seconded the motion. |
Vote | By unanimous voice vote H780 was sent to the 14th order. Senator Cameron will sponsor the amendment. |
Letter of Intent | Senator Compton requested that a letter of intent be sent to the Tax Commission indicating committee support for the bill reporting taxes by counties (S1284). The letter should indicate that annual data would be acceptable and that the tax commission should work with the Retailers Association, the Association of Counties, the Chambers of Commerce and other stakeholders to develop the most practical and expeditious implementation of county reporting of sales taxes. |
Motion | Senator Compton moved to have a letter of intent from the Chairman and backed by the Committee sent to the Tax Commission. Senator Gannon seconded the motion. |
Vote | By unanimous voice vote the motion was carried. |
Closing Business |
Chairman Bunderson said that we had been directed by leadership that this is the last official meeting of the committee. Any bills yet to be received from the house will be heard only if the committee is instructed by leadership. The committee page, Alena Shea, was presented with a gift and a letter of recommendation. Senator Werk had a last minute correction to the March 10 minutes, which was acceptable to the committee and will be included. |
The meeting adjourned subject to call of the chair at 3:30p.m. |
DATE: | March 18, 2004 |
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 8:00a.m. A silent roll call was taken. Senator Hill moved to approve the minutes of March 12 as written. Senator McKenzie seconded the motion. By unanimous voice vote the minutes were approved. The Chairman stated the committee was meeting to hear legislation which leadership had deemed important to be heard prior to adjournment. H760a and H761a are in that category. The other two bills are trailer bills to existing legislation. |
H760a | Senator Hill presented H760a which provides an income tax credit against state income taxes for investments in alternative energy generating equipment. He talked about the benefits of renewable energy and the high costs of alternative energy generation equipment. He also explained the concept of transferability, which would allow energy producers not paying income taxes to transfer or sell their credits at discounted rates to another who is required to pay taxes. He also indicated that after discussion of the bill, he would be moving to send the bill to the 14th order to have the transferability of the tax credits, which was added as an amendment in the House, removed from the bill. He explained that greater benefit is going to some counties because they have higher unemployment rates and greater need of economic development. Representative Eskridge spoke about the kinds of renewable energy Ron Williams, who represents Idaho Consumer Owned Utilities Bill Eddie, who represents Advocates for the West, supports the bill but Russell Hendricks, representing Idaho Farm Bureau, concerned about Senator Stegner encouraged removal of the amendment. He indicated |
Motion | Senator Hill moved to send H760a to the 14th order to amend the bill, removing transferability. Senator Compton seconded the motion. |
Substitute motion |
Senator Gannon made a substitute motion to send H760a to the floor with a Do Pass recommendation. Senator McKenzie seconded the motion. Discussion centered on whether anything was lost by transferring the credit, or whether those who pay no tax should benefit further by selling credits they cannot use. Chairman Bunderson directed the committee to hear H761a before voting on both bills. |
H761a | Senator Hill and Representative Eskridge presented H761a which relates to the production of electricity from the alternative energy generated by the investments discussed in H760a. Discussion included feelings of cautious advancement (original motion) vs desire to provide as much incentive as possible to the investors (substitute motion). |
Motion | Senator Hill moved to send H761a to the 14th order to amend the bill, removing transferability. Senator Compton seconded the motion. |
Substitute motion |
Senator Gannon made a substitute motion to send H761a to the floor with a Do Pass recommendation. Senator McKenzie seconded the motion. |
Vote | By voice vote the substitute motions to send H760a and H761a to the floor with a Do Pass recommendation failed with Senators Sweet, McKenzie and Gannon recorded as voting aye. |
Vote | By voice vote the motion to send H760a and H761a to the 14th order to amend the bills removing transferability passed with Senators Sweet, McKenzie and Gannon recorded as voting nay. These bills will be sent to the 14th order. |
H828 | Woody Richards presented H828 which relates to insurance, revising the rate of tax on surplus lines. It is a trailer bill to H724. H828 makes all surplus line insurance subject to the same premium tax. |
Motion | Senator Compton moved to send H828 to the floor with a Do Pass recommendation. Senator Hill seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
H799a | Dewey Hammond of the Idaho Tax Commission presented H799a, which amends the provisions passed last year allowing a taxpayer to elect a two-year exemption from property tax in lieu of the investment tax credit against income taxes. This removes the penalty language, and adds recapture terminology, making the provision less onerous. Senator Werk again would like to see a sunset date. |
Motion | Senator Compton moved to send H799a to the floor with a Do Pass recommendation. Senator McKenzie seconded the motion. |
Vote | By unanimous voice vote the motion passed. |
Sine Die | The meeting adjourned for the final time at 9:15a.m. |