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HOUSE BILL NO. 274

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Daily Data Tracking History

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H0274...............................................by REVENUE AND TAXATION
AMUSEMENT DEVICES - TAX - Amends existing law to provide that purchase at
retail of amusement devices shall be a sale subject to the state sales tax;
to provide that the charge for using an amusement device shall be subject
to the state sales tax; to provide a formula to compute the tax; and to
provide the responsible party or entity for ultimately paying the tax and
filing returns.

02/17    House intro - 1st rdg - to printing
02/18    Rpt prt - to Rev/Tax

Bill Text

H0274


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 274

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO THE SALES TAX; AMENDING SECTION 63-3623B, IDAHO CODE,  TO  PROVIDE
 3        THAT  PURCHASE  AT  RETAIL OF AMUSEMENT DEVICES SHALL BE A SALE SUBJECT TO
 4        THE STATE SALES TAX, TO PROVIDE THAT THE CHARGE  FOR  USING  AN  AMUSEMENT
 5        DEVICE  SHALL  BE  SUBJECT TO THE STATE SALES TAX, TO PROVIDE A FORMULA TO
 6        COMPUTE THE TAX AND TO PROVIDE THE RESPONSIBLE PARTY OR ENTITY  FOR  ULTI-
 7        MATELY PAYING THE TAX AND FILING RETURNS.

 8    Be It Enacted by the Legislature of the State of Idaho:

 9        SECTION  1.  That Section 63-3623B, Idaho Code, be, and the same is hereby
10    amended to read as follows:

11        63-3623B.  AMUSEMENT DEVICES. (a) For purposes of this  section  the  term
12    "amusement  device"  shall mean all coin, currency, or token operated machines
13    and devices which are used for amusement including, but not limited  to,  game
14    machines, pool tables, juke boxes, electronic games and similar devices.
15        (b)    In  lieu  of  the  imposition of sales tax upon the use of the
16    amusement device, the owner or lessee or person having the right to  impose  a
17    charge  for  use  of  the  amusement  device  must pay an annual permit fee of
18    thirty-five dollars ($35.00) for each such device   The purchase at
19    retail of amusement devices shall be a sale subject to the  taxes  imposed  in
20    this chapter .
21        (c)    The  charge  for using an amusement device shall be subject to
22    the taxes imposed in this chapter and the tax shall be computed by multiplying
23    seventy percent (70%) of the gross proceeds from each amusement device by  one
24    hundred  seventeen  percent (117%) and applying the applicable tax rate estab-
25    lished in this chapter to the product thus computed.  The owner or  lessee  of
26    the  amusement  device  shall be the person responsible for filing all returns
27    and remitting all taxes due relating to the proceeds of the amusement  device.
28        Upon payment of the permit fees, the state tax commission shall
29    issue the permit(s) to the owner or lessee  or  person  having  the  right  to
30    impose  a  charge  for  use  of  the  amusement device. Such permit fee may be
31    increased in a proportionate amount by the commission if the state  sales  tax
32    rate increases.
33     
34         (d)  All applications for a permit renewal must be made to the state
35    tax  commission  on or before July 1 of each year. Such application shall con-
36    tain the same information required on an application to secure a seller's per-
37    mit under this chapter and shall be accompanied by the annual permit  fee  due
38    for each device.
39     
40          (e)  The  state tax commission shall adopt a uniform system of pro-
41    viding, affixing and displaying official  decals,  labels  or  other  official
42    indicia  evidencing  that  the  owner,  lessee,  or person having the right to
43    impose a charge for the use of the amusement device has paid the annual permit


                                          2

 1    fee for such amusement device. No person subject to a permit  fee  under  this
 2    chapter  may  impose  a  charge  or  collect any consideration for use of such
 3    amusement device unless such official decal, label, or other official indicia,
 4    as required herein, is affixed to such amusement device.
 5     
 6         (f)  In addition to the penalties set forth  above  and  in  section
 7    63-3634,  Idaho Code, the state tax commission may assess the following penal-
 8    ties:
 9     
10         (1)  If any owner, lessee, or person having the right  to  impose  a
11        charge  for  the  use  of  any  coin, currency or token operated amusement
12        device in this state shall violate any provision of this  section  or  any
13        rule promulgated under this section, the commission  may assess penalties,
14        of fifty dollars ($50.00) for each device for failure to pay timely permit
15        sticker fees.
16     
17          (2)  A person who knowingly secures or attempts to secure an amuse-
18        ment device permit sticker under this section by fraud, misrepresentation,
19        or subterfuge or uses any permit issued under this section in a fraudulent
20        manner shall be subject to a penalty of up to twenty-five thousand dollars
21        ($25,000).
22     
23         (g)  The state tax commission shall impose the penalties provided in
24    this section by a notice of deficiency determination in the manner provided in
25    section 63-3629, Idaho Code, which shall be subject to review as  provided  in
26    section 63-3631, Idaho Code.
27     
28          (h)  The  commission may revoke all permits of any person who oper-
29    ates any amusement device without complying with the provisions of  this  sec-
30    tion. Notice of revocation shall be given in the manner provided for deficien-
31    cies in taxes in section 63-3629, Idaho Code, which shall be subject to review
32    as provided in section 63-3631, Idaho Code.
33     
34          (i)  Permits  issued under this section are transferable to another
35    person only after written notice of the transfer is given  to  the  state  tax
36    commission. 

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS08891
This legislation provides for a revision to Idaho Code 63-3623B
to repeal provisions allowing for a permit fee in lieu of the
collection of sales tax fees generated by coin, currency and
token operated machines and devices used for amusement.









                           FISCAL NOTE
There will be a $150,000 increase in sales tax revenue to the
State over the current revenue provided by permits.








CONTACT:   Rep. Frank Bruneel
         (208)332-1000
         

                                    STATEMENT OF PURPOSE/ FISCAL NOTE  Bill No.  H 274