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H0557...............................................by REVENUE AND TAXATION EVENT PROMOTER - SALES TAX - Adds to existing law to require that operators and promoters of promoter-sponsored events obtain evidence of compliance with the Idaho Sales Tax Act from sellers participating in the event and to provide penalties. 01/29 House intro - 1st rdg - to printing 01/30 Rpt prt - to Rev/Tax
H0557|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 557 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 63-3620C, IDAHO CODE, TO REQUIRE THAT OPERATORS AND 4 PROMOTERS OF PROMOTER SPONSORED EVENTS OBTAIN EVIDENCE OF COMPLIANCE WITH 5 THE IDAHO SALES TAX ACT FROM SELLERS PARTICIPATING IN THE EVENT, TO PRO- 6 VIDE PENALTIES AND TO PROVIDE A DEFINITION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION , to be 10 known and designated as Section 63-3620C, Idaho Code, and to read as follows: 11 63-3620C. PROMOTER SPONSORED EVENTS. (1) The operator or promoter of a 12 promoter sponsored event, as a prerequisite to renting or leasing space on any 13 premises owned or controlled by that operator or promoter to any person for 14 conducting business as a retailer, shall obtain: 15 (a) Written evidence that the retailer holds a valid seller's permit 16 issued pursuant to this chapter; or 17 (b) A written statement from the retailer that he is not offering for 18 sale any item that is taxable under this chapter or is otherwise not 19 required to hold a valid seller's permit. Such written statements shall be 20 in such form and contain such information as the state tax commission 21 shall require, and shall include the taxpayer identification number of the 22 person authorized to sign the statement. 23 (2) The operator or promoter shall keep such records for not less than 24 four (4) years from the making of such records. 25 (3) Any operator or promoter of a promoter sponsored event who fails to 26 comply with the section may be subject to a minimum penalty of fifty dollars 27 ($50.00) per event and twenty-five dollars ($25.00) for each seller over two 28 (2) sellers for whom such records required by subsection (1) of this section 29 are not obtained, but not to exceed one thousand dollars ($1,000) for each 30 such event. 31 (4) The penalties provided in subsection (3) of this section shall not 32 apply: 33 (a) Unless the state tax commission shall have previously given notice to 34 the operator or promoter or its officer, agent or employee, by certified 35 mail, of a violation of this section by the operator or promoter or its 36 officer, agent or employee and the requirements of this section; or 37 (b) If the operator or promoter shows that such failure is due to reason- 38 able cause and not to willful neglect. 39 (5) The state tax commission shall give notice of any penalty provided in 40 this section and it shall assess such penalties in the manner provided for 41 deficiencies of tax. 42 (6) "Promoter sponsored event" as used in this section means a swap meet, 43 flea market, gun show, fair or similar activity involving a series of sales 2 1 sufficient in number, scope and character to constitute a regular course of 2 business, or any event at which two (2) or more persons offer tangible per- 3 sonal property or services for sale or exchange and at which a fee is charged 4 for the privilege of offering the services or displaying the property for sale 5 or exchange or at which a fee is charged to prospective buyers for admission 6 to the area where the property or services are offered or displayed for sale 7 or exchange.
STATEMENT OF PURPOSE
RS07396
Requires operators and promoters of "promoter sponsored events" to obtain evidence of
compliance with the Idaho Sales Tax Act from sellers participating in the event. The
required evidence is:
-Written evidence that the seller holds a seller's permit under the Idaho Sales Tax Act.
-Written statement that the seller does not make sales subject to tax.
"Promoter sponsored events" are activities involving a series of sales sufficient in number,
scope and character to constitute a regular course of business, or any event at which two
or more persons offer tangible personal property or services for sale or exchange and at
which a fee is charged to prospective buyers for admission to the area where the property
or services are offered or displayed for sale or exchange. Examples include: swap meet,
flea market, gun show, fair or similar activities.
The bill provides a minimum penalty of $50 plus $25 dollars for each participant over two
for each instance for which an operator or promoter fails to obtain the documentation. The
maximum penalty is $1,000. The penalty does not apply if the failure is due to reasonable
cause and not to willful neglect.
FISCAL IMPACT
This bill does not increase the amount of tax that is due. It will facilitate the Tax
Commission' ability to collect taxes under the Idaho Sales Tax Act. Positive effect on
sales tax revenues is estimated at $10,000.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
Statement of Purpose/Fiscal Impact
H 557