2006 Legislation
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HOUSE BILL NO. 486 – Fuel tax, suspended, 3 months

HOUSE BILL NO. 486

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Bill Status



H0486...............................................................by SALI
FUEL TAX - Amends existing law to suspend the imposition of the tax on
motor fuel from April 1, 2006, through June 30, 2006; and to provide for
the distribution of certain moneys in lieu of distributing taxes imposed on
gasoline and special fuel for the period of April 1, 2006, through June 30,
2006.
                                                                        
01/27    House intro - 1st rdg - to printing
01/30    Rpt prt - to Transp

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 486
                                                                        
                                          BY SALI
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION ON FUEL; AMENDING SECTION 63-2402, IDAHO CODE, TO SUSPEND
  3        THE IMPOSITION OF TAX ON THE RECEIPT OF MOTOR FUEL  FROM  APRIL  1,  2006,
  4        THROUGH  JUNE  30,  2006; AMENDING SECTION 63-2412, IDAHO CODE, TO PROVIDE
  5        FOR THE DISTRIBUTION OF CERTAIN  MONEYS  IN  LIEU  OF  DISTRIBUTING  TAXES
  6        IMPOSED  ON  GASOLINE  FOR  THE  PERIOD OF APRIL 1, 2006, THROUGH JUNE 30,
  7        2006; AND AMENDING SECTION 63-2418, IDAHO CODE, TO PROVIDE FOR THE DISTRI-
  8        BUTION OF CERTAIN MONEYS IN LIEU OF DISTRIBUTING TAXES IMPOSED ON  SPECIAL
  9        FUEL FOR THE PERIOD OF APRIL 1, 2006, THROUGH JUNE 30, 2006; AND DECLARING
 10        AN EMERGENCY.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That  Section 63-2402, Idaho Code, be, and the same is hereby
 13    amended to read as follows:
                                                                        
 14        63-2402.  IMPOSITION OF TAX UPON MOTOR FUEL. (1) A tax is  hereby  imposed
 15    upon  the  receipt  of  motor  fuel in this state by any distributor receiving
 16    motor fuel upon which the tax imposed by this section has not previously  been
 17    paid.  The  tax shall be imposed without regard to whether use is on a govern-
 18    mental basis or otherwise, unless exempted by this chapter.
 19        (2)  The tax imposed in this section shall be at the rate  of  twenty-five
 20    cents  (25¢)  per  gallon of motor fuel received. This tax shall be subject to
 21    the exemptions, deductions and refunds set forth  in  this  chapter.  The  tax
 22    shall be paid by distributors upon the distributor's receipt of the motor fuel
 23    in this state.
 24        (3)  Any person coming into this state in a motor vehicle may transport in
 25    the  manufacturer's  original  tank of that vehicle, for his own use only, not
 26    more than thirty (30) gallons of motor fuel for the purpose of operating  that
 27    motor vehicle, without complying with the provisions of this chapter.
 28        (4)  The tax imposed in subsection (1) of this section does not apply to:
 29        (a)  Special fuels that have been dyed at a refinery or terminal under the
 30        provisions  of  26 U.S.C. section 4082 and regulations adopted thereunder,
 31        or under the clean air act and regulations adopted  thereunder  except  as
 32        provided in section 63-2425, Idaho Code; or
 33        (b)  Special  fuel  dispensed into a motor vehicle which uses gaseous spe-
 34        cial fuels and which displays a valid gaseous special fuels  permit  under
 35        section 63-2424, Idaho Code; or
 36        (c)  Special  fuels  that are gaseous special fuels, as defined in section
 37        63-2401, Idaho Code, except that part thereof that is delivered  into  the
 38        fuel supply tank or tanks of a motor vehicle; or
 39        (d)  Aircraft  engine  fuel  subject  to  tax under section 63-2408, Idaho
 40        Code.
 41        (5)  Notwithstanding the provisions of this section, the  tax  imposed  in
 42    this  section shall be suspended for the period of April 1, 2006, through June
 43    30, 2006, and during that period of time there shall be no  tax  imposed  upon
                                                                        
                                           2
                                                                        
  1    the receipt of motor fuel in this state as provided in this section.
                                                                        
  2        SECTION  2.  That  Section 63-2412, Idaho Code, be, and the same is hereby
  3    amended to read as follows:
                                                                        
  4        63-2412.  DISTRIBUTION OF TAX REVENUES FROM TAX ON GASOLINE  AND  AIRCRAFT
  5    ENGINE  FUEL.  (1)  The  revenues  received from the taxes imposed by sections
  6    63-2402 and 63-2421, Idaho Code, upon the receipt or use of gasoline, and  any
  7    penalties,  interest, or deficiency additions and, in lieu of taxes imposed by
  8    section 63-2402, Idaho Code, for the period of April 1, 2006, through June 30,
  9    2006, any additional appropriation from the general fund to the state tax com-
 10    mission appropriated for this purpose, shall be  distributed  periodically  as
 11    follows:
 12        (a)  An  amount  of money equal to the actual cost of collecting, adminis-
 13        tering and enforcing the gasoline tax requirements by the  commission,  as
 14        determined  by it shall be retained by the commission. The amount retained
 15        by the commission shall not exceed the amount authorized to be expended by
 16        appropriation by the legislature. Any unencumbered balance  in  excess  of
 17        the  actual  cost  of collecting, administering and enforcing the gasoline
 18        tax requirements by the commission at the end of each fiscal year shall be
 19        distributed as listed in paragraph (e) of this subsection.
 20        (b)  An amount of money shall be distributed to the state  refund  account
 21        sufficient  to  pay  current  refund claims. All refunds authorized by the
 22        commission to be paid shall be paid from  the  state  refund  account  and
 23        those moneys are hereby continuously appropriated for that purpose.
 24        (c)  As  soon as possible after the beginning of each fiscal year, the sum
 25        of two hundred fifty thousand dollars ($250,000) shall be  distributed  to
 26        the  railroad  grade crossing protection account in the dedicated fund, to
 27        pay the amounts from the account pursuant to  the  provisions  of  section
 28        62-304C, Idaho Code.
 29        (d)  As  soon as possible after the beginning of each fiscal year, the sum
 30        of one hundred thousand dollars ($100,000) shall  be  distributed  to  the
 31        local  bridge inspection account in the dedicated fund, to pay the amounts
 32        from the account pursuant to the provisions of section 40-703, Idaho Code.
 33        (e)  From the balance remaining with the commission after distributing the
 34        amounts in paragraphs (a) through (d) of subsection (1) of this section:
 35             1.  One and twenty-eight hundredths percent (1.28%) shall be distrib-
 36             uted as follows: sixty-six percent (66%) of the one and  twenty-eight
 37             hundredths  percent  (1.28%)  shall  be  distributed to the waterways
 38             improvement account, as created in chapter 15, title 57, Idaho  Code.
 39             Up to twenty percent (20%) of the moneys distributed to the waterways
 40             improvement  account  under  the  provisions of this paragraph may be
 41             used by the department of parks and recreation to defray  administra-
 42             tive  costs.  Any  moneys unused at the end of the fiscal year by the
 43             department of parks and recreation shall be  returned  to  the  state
 44             treasurer  for  deposit  in  the waterways improvement account. Thir-
 45             ty-three percent (33%) of the one and twenty-eight hundredths percent
 46             (1.28%) shall be distributed into the  park  and  recreation  capital
 47             improvement  account  as  created in section 57-1801, Idaho Code. One
 48             percent (1%) of the one and twenty-eight hundredths  percent  (1.28%)
 49             shall be distributed to the search and rescue fund created in section
 50             67-2913, Idaho Code;
 51             2.  One and twenty-eight hundredths percent (1.28%) shall be distrib-
 52             uted  as follows: sixty-six percent (66%) of the one and twenty-eight
 53             hundredths percent (1.28%) shall be distributed to the off-road motor
                                                                        
                                           3
                                                                        
  1             vehicle account, as created in section 57-1901,  Idaho  Code.  Up  to
  2             twenty percent (20%) of the moneys distributed to the off-road  motor
  3             vehicle account by this subparagraph may be used by the department of
  4             parks  and  recreation  to  defray  administrative  costs. Any moneys
  5             unused at the end of the fiscal year by the department of  parks  and
  6             recreation  shall  be  returned to the state treasurer for deposit in
  7             the off-road motor vehicle account. Thirty-three percent (33%) of the
  8             one and twenty-eight hundredths percent (1.28%) shall be  distributed
  9             into  the  park and recreation capital improvement account as created
 10             in section 57-1801, Idaho Code. One  percent  (1%)  of  the  one  and
 11             twenty-eight  hundredths  percent (1.28%) shall be distributed to the
 12             search and rescue fund created in section 67-2913, Idaho Code; and
 13             3.  Forty-four hundredths percent (.44%) shall be distributed to  the
 14             park and recreation capital improvement account as created in section
 15             57-1801,  Idaho  Code, to be used solely to develop, construct, main-
 16             tain and repair roads, bridges and parking areas within  and  leading
 17             to parks and recreation areas of the state.
 18             4.  The balance remaining shall be distributed to the highway distri-
 19             bution account created in section 40-701, Idaho Code.
 20        (2)  The  revenues  received  from  the  taxes imposed by section 63-2408,
 21    Idaho Code, and any penalties, interest, and deficiency amounts, shall be dis-
 22    tributed as follows:
 23        (a)  An amount of money shall be distributed to the state  refund  account
 24        sufficient  to  pay  current  refund claims. All refunds authorized by the
 25        commission to be paid shall be paid from the  state  refund  account,  and
 26        those moneys are hereby continuously appropriated.
 27        (b)  The balance remaining of all the taxes collected shall be distributed
 28        to  the  state  aeronautics  account, as provided in section 21-211, Idaho
 29        Code.
                                                                        
 30        SECTION 3.  That Section 63-2418, Idaho Code, be, and the same  is  hereby
 31    amended to read as follows:
                                                                        
 32        63-2418.  DISTRIBUTION OF TAX REVENUES FROM TAX ON SPECIAL FUELS. The rev-
 33    enues  received  from the tax imposed by this chapter upon the receipt of spe-
 34    cial fuel and any penalties, interest, or deficiency additions and, in lieu of
 35    taxes imposed by this chapter upon the receipt of special fuel for the  period
 36    of April 1, 2006, through June 30, 2006, any additional appropriation from the
 37    general  fund  to  the  state tax commission appropriated for this purpose, or
 38    from the fees imposed by  the  commission  under  the  provisions  of  section
 39    63-2424 or 63-2438, Idaho Code, shall be distributed as follows:
 40        (1)  An  amount  of money equal to the actual cost of collecting, adminis-
 41    tering and enforcing the special fuels tax provisions by  the  commission,  as
 42    determined  by  it shall be retained by the commission. The amount retained by
 43    the commission shall not exceed the amount authorized to be expended by appro-
 44    priation by the legislature. Any unencumbered balance in excess of the  actual
 45    cost of collecting, administering and enforcing the special fuels tax require-
 46    ments by the commission at the end of each fiscal year shall be distributed to
 47    the highway distribution account.
 48        (2)  An  amount  of money shall be distributed to the state refund account
 49    sufficient  to pay current refund claims. All refunds authorized by  the  com-
 50    mission  to  be  paid  under  this chapter shall be paid from the state refund
 51    account, those moneys being hereby continuously appropriated.
 52        (3)  The balance remaining with  the  commission  after  distributing  the
 53    amounts specified in subsections (1) and (2) of this section shall be distrib-
                                                                        
                                           4
                                                                        
  1    uted to the highway distribution account, established in section 40-701, Idaho
  2    Code.
                                                                        
  3        SECTION  4.  An  emergency  existing  therefor,  which emergency is hereby
  4    declared to exist, this act shall be in full force and effect on and after its
  5    passage and approval.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 15795
                                
To suspend the tax on motor fuels imposed by I.C. 63 2402 for 3
months beginning April 1, 2006.




                         FISCAL IMPACT
                                
                                
                                
Negative impact of almost $49 Million to the General Fund which will
be distributed pursuant to I.C. 63 2412 and I.C. 63 2418.






Contact
Name:     Rep. Bill Sali
Phone:    332 1000

     
STATEMENT OF PURPOSE/FISCAL NOTE                               H 486