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H0521...............................................by REVENUE AND TAXATION
SALES TAX - MAIL ORDER - Adds to and amends existing law to require
out-of-state retailers, such as mail order and Internet marketers, to
collect Idaho sales tax on sales of tangible personal property and taxable
services to Idaho customers.
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
02/16 3rd rdg - PASSED - 59-7-4
AYES -- Alltus, Barraclough, Bell, Bieter, Bivens, Black(15),
Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9),
Jones(22), Judd, Kellogg, Kempton, Kjellander, Linford, Loertscher,
Mader, Marley, Meyer, Miller, Mortensen, Newcomb, Pischner, Pomeroy,
Reynolds, Ridinger, Robison, Sali, Schaefer, Stevenson, Stubbs,
Taylor, Tilman, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
NAYS -- Jones(20), Kendell, Kunz, McKague, Richman, Stoicheff,
Tippets
Absent and excused -- Barrett, Lake, Stone, Wood
Floor Sponsor - Bivens
Title apvd - to Senate
02/17 Senate intro - 1st rdg - to Loc Gov
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
03/10 3rd rdg - Held
03/11 3rd rdg - PASSED - 29-5-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Ingram, Ipsen, King, Lee, McLaughlin, Noh, Parry, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Thorne, Twiggs, Wheeler
NAYS--Crow, Keough, Stennett, Sweeney, Whitworth
Absent and excused--Hawkins
Floor Sponsor - Wheeler
Title apvd - to House
03/12 To enrol
03/13 Rpt enrol - Sp signed
03/16 Pres signed
03/16 To Governor
03/17 Governor signed
Session Law Chapter 49
Effective: 03/17/98
H0521|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 521 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES AND USE TAX; AMENDING SECTION 63-3611, IDAHO CODE, TO EXPAND 3 THE DEFINITION OF "RETAILER ENGAGED IN BUSINESS IN THIS STATE"; AMENDING 4 CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 5 63-3620B, IDAHO CODE, TO PROVIDE THAT THE STATE TAX COMMISSION MAY ENTER 6 INTO AGREEMENTS FOR THE COLLECTION AND REMITTANCE OF SALES TAX WITH PER- 7 SONS WHO MAY NOT BE OTHERWISE LIABLE FOR SUCH COLLECTION AND REMITTANCE ON 8 SALES OF TANGIBLE PERSONAL PROPERTY OR TAXABLE SERVICES TO IDAHO CUSTOM- 9 ERS; AND DECLARING AN EMERGENCY. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 63-3611, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 63-3611. RETAILER ENGAGED IN BUSINESS IN THIS STATE. "Retailer engaged in 14 business in this state" as used in this chapter meansand15 any retailer who: 16 (1) Engages in recurring solicitation of purchases from residents of this 17 state or otherwise purposefully directs its business activities at residents 18 of this state; and 19 (2) Has sufficient contact with this state, in accordance with the con- 20 stitution of the United States, to allow the state to require the seller to 21 collect and remit use tax on sales of tangible personal property or services 22 made to customers in this state. 23 (3) The term includes any of the following: 24 (a) Any retailer maintaining, occupying or using, permanently or tempo- 25 rarily, directly or indirectly, or through a subsidiary or agent, by what- 26 ever name called, an office, place of distribution, sales or sample room 27 or place, warehouse or storage place, or other place of business or main- 28 taining a stock of goods. 29 (b) Any retailer having any representative, agent, salesman, canvasser or 30 solicitor operating in this state under the authority of the retailer or 31 its subsidiary for the purpose of selling, delivering, installing or the 32 taking of orders for any tangible personal property. 33 (c) Any retailer, with respect to a lease or rental, deriving rentals 34 from a lease or rental of tangible personal property situated in this 35 state. 36 (d) Any retailer engaging in any activity in connection with servicing or 37 installing tangible personal property in this state. 38 (e) Any retailer owned or controlled by the same interests which own or 39 control any retailer engaged in business in the same or a similar line of 40 business in this state. 41 (f) Any retailer having a franchisee or licensee operating under its 42 trade name if the franchisee or licensee is required to collect the tax 43 under the provisions of this section. 2 1 SECTION 2. That Chapter 36, Title 63, Idaho Code, be, and the same is 2 hereby amended by the addition thereto of a NEW SECTION , to be 3 known and designated as Section 63-3620B, Idaho Code, and to read as follows: 4 63-3620B. AGREEMENTS TO COLLECT AND REMIT SALES TAX. The state tax com- 5 mission may enter into agreements with persons who may not be otherwise liable 6 to collect and remit sales or use taxes for the collection of sales and use 7 taxes due on their sales of tangible personal property or taxable services to 8 customers in this state. These agreements shall be made on terms and condi- 9 tions determined by the commission to be in the best interests of the state. 10 SECTION 3. An emergency existing therefor, which emergency is hereby 11 declared to exist, this act shall be in full force and effect on and after its 12 passage and approval.
STATEMENT OF PURPOSE
RS07353
The bill strengthens the ability of the State of Idaho to require out-of-state retailers, particularly mail
order and Internet marketers to collect Idaho sales tax on property sold to Idaho customers. It
makes two changes to the Idaho Sales Tax Act.
First, the bill adds language to insure that the Act reaches the full extent of Idaho's constitutional
power to require out-of-state sellers to obtain an Idaho sales tax permit and to collect and remit
Idaho sales or use tax.
Second, for retailers who may not be subject to Idaho's jurisdiction, the bill authorizes the State
Tax Commission to reach agreements for the collection of sales and use taxes due on their sales
to Idaho customers on terms and conditions determined by the Commission to be in the best
interests of the state.
FISCAL IMPACT
Additional $500,000 of sales tax revenue.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
Statement of Purpose/Fiscal Impact
H 521