2006 Legislation
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HOUSE BILL NO. 796 – Sales tax exmptn/pollutn control

HOUSE BILL NO. 796

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Bill Status



H0796...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTION - POLLUTION CONTROL EQUIPMENT - Amends existing law to
revise the tax exemption applicable to pollution control equipment.
                                                                        
03/10    House intro - 1st rdg - to printing
03/13    Rpt prt - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 57-5-8
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Chadderdon,
      Clark, Collins, Deal, Denney, Eskridge, Field(18), Field(23),
      Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake,
      Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Rydalch,
      Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Smith(30),
      Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Cannon, LeFavour, Mitchell, Ringo, Rusche
      Absent and excused -- Bayer, Crow, Edmunson, Ellsworth, Roberts,
      Sali, Skippen, Smith(24)
    Floor Sponsor - Denney
    Title apvd - to Senate
03/16    Senate intro - 1st rdg - to Loc Gov
03/24    Rpt out - rec d/p - to 2nd rdg
03/27    2nd rdg - to 3rd rdg
03/28    3rd rdg - PASSED - 33-1-1
      AYES -- Andreason, Brandt, Broadsword, Burkett(Clark), Burtenshaw,
      Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon,
      Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- Bunderson
      Absent and excused -- Sweet
    Floor Sponsor - Williams
    Title apvd - to House
03/29    To enrol
03/30    Rpt enrol - Sp signed
03/31    Pres signed - To Governor
03/31    Governor signed
         Session Law Chapter 326
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 796
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION; AMENDING SECTION 63-3622X, IDAHO  CODE,  TO  REVISE  THE
  3        EXEMPTION  APPLICABLE  TO  POLLUTION CONTROL EQUIPMENT; DECLARING AN EMER-
  4        GENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 63-3622X, Idaho Code, be, and the same is  hereby
  7    amended to read as follows:
                                                                        
  8        63-3622X.  POLLUTION  CONTROL EQUIPMENT. There is hereby exempted from the
  9    taxes imposed by this chapter the sale, use or purchase of  tangible  personal
 10    property,  which  property is pollution control equipment required to meet air
 11    and water quality standards of a state or federal agency having  authority  to
 12    regulate and set air and water quality emission standards.
 13        This  exemption  applies to the purchase of dry cleaning equipment that is
 14    designed to protect employees from exposure to perchloroethylene  as  well  as
 15    retaining  the  fluid in the machine in order to protect sewer systems and air
 16    quality standards. Dry cleaning machines meeting these standards are  referred
 17    to as "dry to dry transfer systems."
 18        This  exemption  applies to the purchase of a liner or reagent required to
 19    meet water quality standards, rules or  regulations  of  a  state  or  federal
 20    agency having authority to regulate and set water quality standards regardless
 21    of  whether the liner or reagent later becomes or is intended to become a com-
 22    ponent of any real property or improvement or fixture thereto.
 23        This exemption does not include motor vehicles or aircraft, without regard
 24    to the use to which such motor vehicles or aircraft are put.
                                                                        
 25        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 26    declared to exist, this act shall be in full force and effect on and after its
 27    passage and approval, and retroactively to July 1, 2005.

Statement of Purpose / Fiscal Impact


                              
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                    STATEMENT OF PURPOSE
                              
                         RS 16230 
  
       This bill clarifies that the sales tax exemption for
  pollution control equipment is available for liners and
  reagents intended to protect ground water. Under current Tax
  Commission rulings, the exemption would be denied because
  the liners and reagents would be considered improvements to
  real property.    
  
  
  
                        FISCAL NOTE
  
       Approximately $5.5 million of liners and reagents will
  be installed or used in FY 2006 that would not be considered
  eligible for the sales tax exemption by the Tax Commission. 
  This bill would make the purchase of those liners and
  reagents exempt from $275,000 of sales tax in FY 2006.  
       The fiscal impact of this bill beyond FY 2006 will
  depend on the value of liners and reagents, if any, that are
  installed or used but are not considered eligible for the
  sales tax exemption under current Tax Commission rulings.
  That fiscal impact is expected to be less than $300,000 in
  FY 2007.
  
  
  
  
  
  
  
  
  CONTACT:  Jack Lyman
            Idaho Mining Association 
            342-0031
  
            Brent Olmstead
            Milk Producers of Idaho
            345-1190
            
  
  STATEMENT OF PURPOSE/FISCAL NOTE                    H 796