Print Friendly HOUSE BILL NO. 556 – Sales tax, Indian reservations
HOUSE BILL NO. 556
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H0556...............................................by REVENUE AND TAXATION
SALES TAX - INDIAN RESERVATIONS - Amends existing law to exclude use taxes
on certain tangible personal property from the exemption from sales tax
allowed for sales occurring within the boundaries of an Indian reservation.
01/29 House intro - 1st rdg - to printing
01/30 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. 556
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES TAX EXEMPTIONS; AMENDING SECTION 63-3622Z, IDAHO CODE, TO
3 EXCLUDE USE TAXES ON CERTAIN TANGIBLE PERSONAL PROPERTY FROM THE EXEMPTION
4 FROM SALES TAX ALLOWED FOR SALES OCCURRING WITHIN THE BOUNDARIES OF AN
5 INDIAN RESERVATION AND TO MAKE TECHNICAL CORRECTIONS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-3622Z, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3622Z. SALES BY INDIAN TRIBES -- EXCEPTION . (1) There is
10 hereby exempted from the taxes imposed by this chapter sec-
11 tion 63-3619, Idaho Code, sales occurring within the boundaries of an
12 Indian reservation located in Idaho when the business or enterprise is wholly
13 owned and operated by an Idaho Indian tribe identified in section 67-4001,
14 Idaho Code.
15 (2) As used in this section the word "reservation" means lands which are:
16 (a) Indian lands federally declared to be reservations because they are
17 reserved for Indian tribes by treaty between Indian tribes and any terri-
18 torial governments, state government, or the United States G
19 g overnment; or , established by acts of the
20 United States congress; or established by formal decision of the executive
21 branch of the United States; or
22 (b) Held by an Idaho Indian tribe not holding lands which meet the defi-
23 nition of subsection (2)(a) of this section and are tribal lands held in
24 trust by the United States for the use and benefit of such tribe but not
25 placed in trust after the effective date of this act.
26 (3) The exemption provided in this section does not include use
27 taxes under section 63-3621, Idaho Code, on tangible personal property which
28 is not used on a reservation or which is used on a reservation by a person who
29 is not an enrolled member of the tribe for whom the reservation was created.
STATEMENT OF PURPOSE
This bill limits the sales and use tax exemption for sales by Indian tribal enterprises on
reservations by excluding from the exemption use taxes on tangible persona I property
which is not used on a reservation or which is used on a reservation by a person who is
not an enrolled member of the tribe for whom the reservation was created.
Estimate additional $5,000 in sales tax revenue.
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Statement of Purpose/Fiscal Impact