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HOUSE BILL NO. 520

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Daily Data Tracking History

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H0520...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to provide that all moneys collected by any
person as sales tax, including any accrued penalties and interest on the
amount collected, are to be held in trust for the state of Idaho.

01/27    House intro - 1st rdg - to printing
01/28    Rpt prt - to Rev/Tax

Bill Text

H0520


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 520

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO SALES TAX; AMENDING SECTION 63-3623A, IDAHO CODE, TO PROVIDE  THAT
 3        ALL MONEYS COLLECTED BY ANY PERSON AS SALES TAX INCLUDING ANY ACCRUED PEN-
 4        ALTIES  AND  INTEREST  ON THE AMOUNT COLLECTED ARE TO BE HELD IN TRUST FOR
 5        THE STATE OF IDAHO.

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

 7        SECTION 1.  That Section 63-3623A, Idaho Code, be, and the same is  hereby
 8    amended to read as follows:

 9        63-3623A.  TAXES  AS STATE MONEY. All moneys  which are or are repre-
10    sented to be a tax under this chapter and which are  collected by  
11    retailers  in  compliance  with  this  chapter    any person 
12    shall, immediately upon collection, be state money  and   held
13    in trust for the benefit of the state.   E  e very
14    such  retailer   person  shall  hold  such  money  
15    plus  any  accrued  penalties  and  interest  on the amount collected in trust
16     for the state of Idaho and for payment to the state tax  commission  in
17    the  manner  and  at the times required in this chapter. Such money shall not,
18    for any purpose, be considered to be a part of the proceeds  of  the  sale  to
19    which  the  tax  relates  and shall not be subject to an encumbrance, security
20    interest, execution or seizure on account  of  any  debt  owed  by    the
21    retailer    such person  to any creditor other than the state
22    tax commission.

Statement of Purpose / Fiscal Impact

    





    STATEMENT OF PURPOSE
                         
    
    RS07352
    
    Under present law, sales tax collected by a retailer is property of the State of Idaho when it 
    is collected. This bill expands the responsibility to hold sales tax for the state to any person 
    who collects the tax, not just the retailers who makes the sale. Thus, a purchaser or 
    assignee of the retailer's accounts receivable to whom the purchaser pays the tax must hold 
    the money for the State until the tax is paid either by the retailer or person receiving the tax.
    
                               FISCAL IMPACT
    
    Additional $50,000 in sales tax revenue.
    
    CONTACT
    Name: Dan John/Ted Spangler
    Agency: State Tax Commission
    Phone: 334-7530
    Statement of Purpose/Fiscal Impact
    
    H 520