2006 Legislation
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HOUSE BILL NO. 687 – Sales tax exmptn/glider kit vehicle

HOUSE BILL NO. 687

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Bill Status



H0687...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTION - Amends existing law to provide that the sale or
purchase of a glider kit shall be exempt from the sales and use tax when
the glider kit will be used to assemble a glider kit vehicle, which will be
immediately registered under the international registration plan or similar
proportional or pro rata registration system.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Rev/Tax
02/24    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 60-5-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Bolz, Brackett, Bradford, Chadderdon,
      Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge,
      Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
      Miller, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring,
      Ringo, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Skippen, Smith(30), Smith(24), Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- Boe, Cannon, Mitchell, Rusche, Smylie
      Absent and excused -- Block, Deal, Field(18), Roberts, Snodgrass
    Floor Sponsor - Lake
    Title apvd - to Senate
03/03    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Malepeai
    Floor Sponsor - McKenzie
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/27    Pres signed
03/28    To Governor
03/30    Governor signed
         Session Law Chapter 237
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 687
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING SECTION 63-3622R, IDAHO  CODE,  TO
  3        PROVIDE THAT THE SALE OR PURCHASE OF A GLIDER KIT SHALL BE EXEMPT FROM THE
  4        SALES  AND  USE  TAX WHEN THE GLIDER KIT WILL BE USED TO ASSEMBLE A GLIDER
  5        KIT VEHICLE, WHICH WILL BE IMMEDIATELY REGISTERED UNDER THE  INTERNATIONAL
  6        REGISTRATION PLAN OR SIMILAR PROPORTIONAL OR PRO RATA REGISTRATION SYSTEM.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That Section 63-3622R, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        63-3622R.  MOTOR VEHICLES, USED MANUFACTURED HOMES,  VESSELS,  ALL-TERRAIN
 11    VEHICLES,  TRAILERS,  OFF-ROAD  MOTORCYCLES,  AND SNOWMOBILES AND GLIDER KITS.
 12    There are exempted from the taxes imposed by this chapter:
 13        (a)  Sales to nonresidents of  motor  vehicles,  trailers,  vessels,  all-
 14    terrain  vehicles  (ATVs),  motorcycles  intended for off-road use and snowmo-
 15    biles, for use outside of this state even though delivery be made within  this
 16    state, but only when:
 17        (1)  The  motor vehicles, vessels, ATVs, motorcycles intended for off-road
 18        use, snowmobiles or trailers will be taken from the point of  delivery  in
 19        this state directly to a point outside this state; and
 20        (2)  The  motor vehicles, vessels, ATVs, motorcycles intended for off-road
 21        use, snowmobiles and trailers will be  registered  immediately  under  the
 22        laws  of  another state, will be titled in another state if required to be
 23        titled in that state, will not be used in this state more than sixty  (60)
 24        days  in  any  twelve  (12)  month  period, and will not be required to be
 25        titled under the laws of this state.
 26        (3)  For the purpose of this subsection (a), the term  "all-terrain  vehi-
 27        cle" or "ATV" means any recreational vehicle with three (3) or more tires,
 28        weighing  under  eight hundred fifty (850) pounds, forty-eight (48) inches
 29        or less in width, having a wheelbase of sixty-one  (61)  inches  or  less,
 30        traveling on low-pressure tires of ten (10) psi or less.
 31        (4)  For  the  purpose  of  this section, the term "vessel" means any boat
 32        intended to carry one (1) or more persons upon the water which is either:
 33             (i)   Sold together with a motor, or
 34             (ii)  Eleven (11) feet in length  or  more,  but  shall  not  include
 35             canoes, kayaks or inflatable boats, unless such canoes, kayaks or in-
 36             flatable boats are sold together with a motor.
 37        (b)  Sale  of  used  manufactured homes, whether or not such used manufac-
 38    tured homes are sold for use outside this state, and whether or not such  used
 39    manufactured  homes  are  sold by a dealer. Every manufactured home sale after
 40    its sale as a "new manufactured home," as defined in  section  63-3606,  Idaho
 41    Code, is a sale as a used manufactured home.
 42        (c)  Sale  or  lease  of  motor  vehicles  with a maximum gross registered
 43    weight over twenty-six thousand (26,000) pounds, which  shall  be  immediately
                                                                        
                                           2
                                                                        
  1    registered  under  the international registration plan or similar proportional
  2    or pro rata registration system, whether or not base plated in Idaho, and  the
  3    sale  or  lease  of trailers which are part  of a fleet of vehicles registered
  4    under such proportional or pro rata registration system when such vehicles and
  5    trailers are substantially used in interstate commerce. If such a motor  vehi-
  6    cle  or  trailer  is  not substantially used in interstate commerce during any
  7    annual registration period under the international registration plan, it shall
  8    be deemed used in Idaho and subject to the  use  tax  under  section  63-3621,
  9    Idaho  Code. For the purpose of this subsection, "substantially used in inter-
 10    state commerce" means that the vehicles or trailers will be part  of  a  fleet
 11    with a minimum of ten percent (10%) of the miles operated by the fleet accrued
 12    outside  of  Idaho  in  any annual registration period under the international
 13    registration plan.
 14        (d)  The sale or purchase of a glider kit as defined  in  section  49-123,
 15    Idaho Code, when the glider kit will be used to assemble a glider kit vehicle,
 16    which will be immediately registered under a plan defined in subsection (c) of
 17    this section.
 18        (e)  The  use  or other consumption of a motor vehicle temporarily donated
 19    to a driver's education program sponsored by a nonprofit educational  institu-
 20    tion as defined in section 63-3622O, Idaho Code.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                                   
                             RS 15594
                                
                                   
         This legislation will amend Idaho Code 63-6955R to
    include the sales of glider kits.  A glider kit is, for all
    intents and purposes, a new replacement vehicle even to the
    extent of being furnished by the truck manufacturer with a
    new Manufacturer's Certificate of Origin, which is the same
    instrument of title that comes with a new vehicle.  This
    legislation would permit an owner of a wrecked vehicle to
    purchase and put in service a replacement on the same basis
    as the original vehicle, not as a repair part.
    
    
    
                           FISCAL NOTE
                                   
    If the state collected sales tax on Glider kits they would
    collect approximately $240,000.  
         
    
    
    
    
    
    Contact:
    Skip Smyser
    Connolly and Smyser, Ctd.
    342-0777
    
    
    
    STATEMENT OF PURPOSE/FISCAL NOTE                  H 687