2006 Legislation
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HOUSE BILL NO. 484 – Sales tax exmptn, pollution control

HOUSE BILL NO. 484

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Bill Status



H0484...............................................by REVENUE AND TAXATION
TAXATION - Amends existing law relating to taxation to revise the tax
exemption applicable to pollution control devices or equipment.
                                                                        
01/26    House intro - 1st rdg - to printing
01/27    Rpt prt - to Rev/Tax
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 58-11-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Loertscher, Mathews, McGeachin, McKague,
      Miller, Moyle, Nielsen, Nonini, Raybould, Ring, Roberts, Rydalch,
      Sali(Sali), Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
      Smith(24), Smylie(Luker), Snodgrass, Stevenson, Wills, Wood, Mr.
      Speaker
      NAYS -- Boe, LeFavour, Martinez, Mitchell, Pasley-Stuart, Pence,
      Ringo, Rusche, Sayler, Smith(30), Trail
      Absent and excused -- Lake
    Floor Sponsor - Denney
    Title apvd - to Senate
02/23    Senate intro - 1st rdg - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 484
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO  TAXATION;  AMENDING  SECTION  63-3622X,  IDAHO  CODE,  TO  REVISE
  3        DESCRIPTIVE  LANGUAGE AND TO REVISE THE TAX EXEMPTION APPLICABLE TO POLLU-
  4        TION CONTROL DEVICES, MATERIAL OR EQUIPMENT; DECLARING  AN  EMERGENCY  AND
  5        PROVIDING RETROACTIVE APPLICATION.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That Section 63-3622X, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        63-3622X.  POLLUTION CONTROL DEVICES, MATERIAL  AND  EQUIPMENT.  There  is
 10    hereby  exempted  from the taxes imposed by this chapter the sale, use or pur-
 11    chase of tangible personal property, which property  is  a  pollution  control
 12    device  or  pollution  control  material or equipment required to meet air and
 13    water quality standards or regulations of a state  or  federal  agency  having
 14    authority to regulate and set air and water quality emission standards regard-
 15    less  of  whether  the  tangible  personal  property becomes or is intended to
 16    become a component of any real property or any improvement or fixture thereto.
 17        This exemption applies to the purchase of dry cleaning equipment  that  is
 18    designed  to  protect  employees from exposure to perchloroethylene as well as
 19    retaining the fluid in the machine in order to protect sewer systems  and  air
 20    quality  standards. Dry cleaning machines meeting these standards are referred
 21    to as "dry to dry transfer systems."
 22        This exemption does not include motor vehicles or aircraft, without regard
 23    to the use to which such motor vehicles or aircraft are put.
                                                                        
 24        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 25    declared to exist, this act shall be in full force and effect on and after its
 26    passage and approval, and retroactively to July 1, 2005.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS 15532C1
                                
    This bill clarifies that the legislature intended the sales
    tax exemption for pollution control equipment to be
    available for devices, materials and equipment that become
    improvements to real property.  This means that a synthetic
    liner, required by DEQ and intended to protect ground water
    quality, would be eligible for the exemption from sales tax. 
    Under current Tax Commission rulings, the exemption would be
    denied because the liner would be considered an improvement
    to real property.
    
    
    
       
                           FISCAL NOTE
                                
    DFM estimated the pollution control sales tax exemption to
    be worth $3,317,000 in FY 2006.  That estimate does not
    include the effect of this change in law.  Approximately $6
    million of synthetic liners and other materials were
    installed in late 2005.  This bill would make the purchase
    of those liners and materials exempt from $300,000 of sales
    tax in FY 2006.  
    
    DFM estimates the pollution control sales tax exemption to
    be worth $3,492,000 in FY 2007.  The fiscal impact of this
    bill will depend on the value of pollution control devices,
    materials and equipment, if any, that are installed but are
    not considered eligible for the sales tax exemption under
    current Tax Commission rulings.
    
    
    
    
    
    
    CONTACT   
    Name: Jack Lyman, Idaho Mining Association
    Phone: 342.0031
    Name: Brent Olmstead, Milk Producers of Idaho
    Phone: 345.1190
              
    
    STATEMENT OF PURPOSE/FISCAL NOTE                 H 484