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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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 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