Print Friendly HOUSE BILL NO. 520 – Sales tax collected, state money
HOUSE BILL NO. 520
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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
|||| 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
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.
Additional $50,000 in sales tax revenue.
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Statement of Purpose/Fiscal Impact