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H0519...............................................by REVENUE AND TAXATION SALES TAX - Amends existing law to expand the definition of tangible personal property to clarify that advertising space is not subject to sales and use tax when sold to an advertiser or its agent by the publisher of a newspaper or the magazine in which the advertisement is displayed or circulated. 01/27 House intro - 1st rdg - to printing 01/28 Rpt prt - to Rev/Tax 02/09 Rpt out - rec d/p - to 2nd rdg 02/10 2nd rdg - to 3rd rdg 02/12 3rd rdg - PASSED - 65-1-4 AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens, Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane, Crow, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller, Mortensen, Pischner, Reynolds, Richman, Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman, Tippets, Watson, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- Newcomb Absent and excused -- Cuddy, Jones(9), Pomeroy, Trail Floor Sponsor - Gould Title apvd - to Senate 02/13 Senate intro - 1st rdg - to Loc Gov 02/17 Rpt out - rec d/p - to 2nd rdg 02/18 2nd rdg - to 3rd rdg 03/10 3rd rdg - PASSED - 34-0-1 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen, Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney, Thorne, Twiggs, Wheeler, Whitworth NAYS--None Absent and excused--Sorensen Floor Sponsor - Wheeler Title apvd - to House 03/11 To enrol 03/12 Rpt enrol - Sp signed 03/13 Pres signed 03/16 To Governor 03/17 Governor signed Session Law Chapter 50 Effective: 07/01/98
H0519|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 519 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES AND USE TAX; AMENDING SECTION 63-3616, IDAHO CODE, TO EXPAND 3 THE DEFINITION OF TANGIBLE PERSONAL PROPERTY TO CLARIFY THAT ADVERTISING 4 SPACE IS NOT SUBJECT TO SALES AND USE TAX WHEN SOLD TO AN ADVERTISER OR 5 ITS AGENT BY THE PUBLISHER OF THE NEWSPAPER OR THE MAGAZINE IN WHICH THE 6 ADVERTISEMENT IS DISPLAYED OR CIRCULATED. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 63-3616, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 63-3616. TANGIBLE PERSONAL PROPERTY. (a) The term "tangible personal 11 property" means personal property which may be seen, weighed, measured, felt 12 or touched, or which is in any other manner perceptible to the senses. 13 (b) The term "tangible personal property" includes any computer software 14 which is not a custom computer program. 15 (i) As used in this subsection, the term "computer software" means any 16 computer program, part of a program or any sequence of instructions for 17 automatic data processing equipment or information stored in an electronic 18 medium. Computer software is deemed to be tangible personal property for 19 purposes of this chapter regardless of the method by which the title, pos- 20 session or right to use the software is transferred to the user. 21 (ii) As used in this subsection, the term "custom computer program" means 22 any computer software (as defined in this subsection) which is written or 23 prepared exclusively for a customer and includes those services repre- 24 sented by separately stated charges for the modification of existing 25 prewritten programs when the modifications are written or prepared exclu- 26 sively for a customer. The term does not include a "canned" or prewritten 27 program which is held or existing for general or repeated sale, lease or 28 license, even if the program was initially developed on a custom basis or 29 for in-house use. Modification to an existing prewritten program to meet 30 the customer's needs is custom computer programming only to the extent of 31 the modification, and only to the extent that the actual amount charged 32 for the modification is separately stated on invoices, statements, and 33 other billing documents supplied to the purchaser. 34 (c) The term "tangible personal property" does not include adver- 35 tising space when sold to an advertiser or its agent by the publisher of the 36 newspaper or the magazine in which the advertisement is displayed or circu- 37 lated.
STATEMENT OF PURPOSE RS07350 This bill clarifies that Idaho sales and use taxes do not apply to the sale of advertising space in a newspaper or magazine. There is no fiscal effect. CONTACT Name: Dan John/Ted Spangler Agency: State Tax Commission Phone: 334-7530 Statement of Purpose/Fiscal Impact FISCAL IMPACT H 519