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H0686...............................................by REVENUE AND TAXATION
NATURAL GAS COOPERATIVE ASSOCIATION - Amends and adds to existing law
relating to taxation of natural gas cooperative associations, to provide
definitions, to provide a reference to annual gross electrical earnings, to
provide for a tax levy on annual gross natural gas earnings, to provide a
reference to electrical associations, to provide for filing an operator's
statement and for allotment and apportionment of tax due from natural gas
associations, to provide for notification by the county treasurer to each
natural gas cooperative of taxes owed, to provide that taxes due and
payable are liens on the electrical or natural gas association owing the
tax and to provide that nonoperating property of a natural gas association
shall be assessed by the county assessor.
02/13 House intro - 1st rdg - to printing
02/16 Rpt prt - to Rev/Tax
02/20 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 66-0-4
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Clark, Crow,
Cuddy, Deal, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9), Jones(22),
Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake,
Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller,
Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger,
Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor,
Tilman, Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Chase, Crane, Denney, Wood
Floor Sponsor - Campbell
Title apvd - to Senate
02/27 Senate intro - 1st rdg - to Loc Gov
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 33-0-2
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Wheeler, Whitworth
NAYS--None
Absent and excused--Ipsen, Twiggs
Floor Sponsors - Keough, Hawkins
Title apvd - to House
03/17 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed - to Governor
03/20 Governor signed
Session Law Chapter 132
Effective: 01/01/99
H0686|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 686 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION OF NATURAL GAS COOPERATIVE ASSOCIATIONS; AMENDING SECTION 3 63-3501, IDAHO CODE, TO ADD DEFINITIONS AND TO MAKE A TECHNICAL CORREC- 4 TION; AMENDING SECTION 63-3502, IDAHO CODE, TO PROVIDE A REFERENCE TO 5 ANNUAL GROSS ELECTRICAL EARNINGS AND TO MAKE A TECHNICAL CORRECTION; 6 AMENDING CHAPTER 35, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC- 7 TION 63-3502A, IDAHO CODE, TO PROVIDE FOR A TAX LEVY ON ANNUAL GROSS NATU- 8 RAL GAS EARNINGS; AMENDING SECTION 63-3503, IDAHO CODE, TO PROVIDE A REF- 9 ERENCE TO ELECTRICAL ASSOCIATIONS; AMENDING CHAPTER 35, TITLE 63, IDAHO 10 CODE, BY THE ADDITION OF A NEW SECTION 63-3503A, IDAHO CODE, TO PROVIDE 11 FOR FILING AN OPERATOR'S STATEMENT AND FOR ALLOTMENT AND APPORTIONMENT OF 12 TAX DUE FROM NATURAL GAS ASSOCIATIONS BY THE STATE TAX COMMISSION; AMEND- 13 ING SECTION 63-3504, IDAHO CODE, TO PROVIDE FOR NOTIFICATION BY THE COUNTY 14 TREASURER TO EACH NATURAL GAS COOPERATIVE OF TAXES OWED AND TO MAKE TECH- 15 NICAL CORRECTIONS; AMENDING SECTION 63-3505, IDAHO CODE, TO PROVIDE THAT 16 TAXES DUE AND PAYABLE ARE LIENS ON THE ELECTRICAL OR NATURAL GAS ASSOCIA- 17 TION OWING THE TAX; AMENDING SECTION 63-3506, IDAHO CODE, TO PROVIDE THAT 18 NONOPERATING PROPERTY OF A NATURAL GAS ASSOCIATION SHALL BE ASSESSED BY 19 THE COUNTY ASSESSOR; AND TO PROVIDE AN EFFECTIVE DATE. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Section 63-3501, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 63-3501. DEFINITIONS. For the purposes of this act: 24 (a) The term "cooperative electrical association" means any nonprofit, 25 cooperative association organized and maintained by its members, whether 26 incorporated or unincorporated, for the purpose of transmitting, distributing 27 or delivering electric power to its members. 28 (b) The term "cooperative natural gas association" means any non- 29 profit cooperative association organized and maintained by its members, 30 whether incorporated or unincorporated, for the purpose of transmitting, dis- 31 tributing or delivering natural gas to its members. 32 (c) The term "cost of power" means the cost of power purchases and 33 generation included in reports to, and in accordance with applicable require- 34 ments of, the rural electrification administration, United States department 35 of agriculture, by cooperative electrical associations which are borrowers 36 from the rural electrification administration, and for cooperative electrical 37 associations which are not borrowers from the rural electrification adminis- 38 tration, such costs which could have been included by such cooperative elec- 39 trical associations using equivalent reporting and accounting requirements. 40 The state tax commission shall prescribe necessary rules and regulations for 41 the purpose of providing a uniform method of reporting cost of power purchases 42 and generation by cooperative electrical associations, consistent with the 43 reporting and accounting requirements of the rural electrification administra- 2 1 tion. 2 (d) The term "cost of gas" means the cost of natural gas purchased 3 by cooperative natural gas associations from wholesale or other suppliers of 4 natural gas for delivery to members of the cooperative natural gas associa- 5 tion. 6 (ce ) The term "gross electrical 7 earnings" means the gross receipts of a cooperative electrical association 8 from the distribution, delivery and sale of electric power within the state of 9 Idaho, but shall not include any earnings or receipts from the distribution, 10 delivery or sale of electric power consumed in pumping water for irrigation or 11 drainage purposes within the state of Idaho, upon the land of such consumer 12 and for the use and benefit of his own land, and where such consumer has 13 received from the association a refund, rebate, or credit of three and one- 14 halfper centpercent (3 1/2%) of the cost to him of 15 the electric power so used and consumed. 16 (f) The term "gross natural gas earnings" means the gross receipts 17 of a cooperative natural gas association from the distribution, delivery and 18 sale of natural gas within the state of Idaho. 19 (dg ) The term "operating property" means and 20 includes all real estate, fixtures or personal property owned, controlled, 21 operated or managed by such electrical or natural gas association 22 in connection with or to facilitate the generation, transmission, distribu- 23 tion, delivery, or measuring of electric power or natural gas , 24 and all conduits, ducts, or other devices, materials, apparatus or property 25 for containing, holding or carrying conductors used or to be used for the 26 transmission, distribution and delivery of electric power and natural 27 gas , including construction tools, materials and supplies. 28 (eh ) The term "nonoperating property" means all 29 other property, real or personal, owned, controlled or managed by such 30 electrical or natural gas association. 31 (fi ) The term "taxing unit" shall include the 32 separate taxing districts of the county as well as the county itself. 33 (gj ) The term "tax levy" means the total tax 34 levies fixed by each taxing district, as defined herein, in the year next pre- 35 ceding. 36 (hk ) The term "WPPSS 4 and 5 costs" means, for 37 a cooperative electrical association which is a participant under the Washing- 38 ton public power supply system nuclear projects numbers 4 and 5 participants' 39 agreement, dated July 14, 1976, all of its costs in connection with Washington 40 public power supply system nuclear projects numbers 4 and 5. 41 (il ) The term "weighted wire mileage factor" 42 means a figure which is arrived at by multiplying the tax levy of each taxing 43 unit by the number of wire miles of transmission and distribution lines of 44 such cooperative electrical association situated in such taxing unit. 45 (m) The term "gas line mileage factor" means a figure which is 46 arrived at by multiplying the tax levy of each taxing unit by the number of 47 miles of natural gas transmission and distribution lines of such cooperative 48 natural gas association situated in such taxing unit. 49 SECTION 2. That Section 63-3502, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 63-3502. LEVY OF TAX ON ANNUAL GROSS ELECTRICAL EARNINGS. 52 There shall be levied against every cooperative electrical association in this 53 state a tax of three and one-halfper centpercent 3 1 (3 1/2%) of its annual gross earnings, after first reducing such gross earn- 2 ings by its cost of power and WPPSS 4 and 5 costs in such sum as the amount of 3 its gross earnings bear to its gross receipts from the distribution, delivery 4 and sale of electric power within the state of Idaho. This tax shall be in 5 lieu of all other taxes on the operating property of such association for the 6 tax year next preceding the filing of the statement hereinafter provided for, 7 and which shall be paid in the manner and at the time prescribed herein. 8 SECTION 3. That Chapter 35, 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 63-3502A, Idaho Code, and to read as follows: 11 63-3502A. LEVY OF TAX ON ANNUAL GROSS NATURAL GAS EARNINGS. There shall 12 be levied against every cooperative natural gas association in this state a 13 tax of three and one-half percent (3 1/2 %) of its annual gross earnings, 14 after first reducing such gross earnings by its cost of natural gas. This tax 15 shall be in lieu of all other taxes on the operating property of such associa- 16 tion of the tax year next preceding the filing of the statement hereinafter 17 provided for, and which shall be paid in the manner and at the time prescribed 18 herein. 19 SECTION 4. That Section 63-3503, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 63-3503. FILING OPERATORS' STATEMENT -- ALLOTMENT AND APPORTIONMENT OF 22 TAX DUE FROM ELECTRICAL ASSOCIATIONS BY STATE TAX COMMISSION. 23 Every cooperative electrical association in this state shall file with the 24 state tax commission of the state of Idaho the operators' statement provided 25 for in section 63-404, Idaho Code, and shall include thereon a statement of 26 the amount of its gross earnings for the calendar year next preceding. Upon 27 examining and verifying said statement the state tax commission shall compute 28 the amount of the tax measured by the gross earnings and shall allot to each 29 county in which the operating property of such association is situate that 30 proportion of the total tax of such association shown to be due as the number 31 of wire miles of transmission and distribution lines of such association situ- 32 ate in such county bears to the total wire miles of transmission and distribu- 33 tion lines of such association. The state tax commission shall then, for each 34 county, apportion the tax so allotted to the county among the several taxing 35 units thereof within which any operating property of such association is situ- 36 ate, by apportioning to each such taxing unit that proportion of the tax so 37 allotted to the county as the weighted wire mileage factor for each such tax- 38 ing unit bears to the total of the weighted wire mileage factors of all such 39 taxing units in the county, and shall immediately notify the state superin- 40 tendent of public instruction and the county treasurer of such allotment and 41 apportionment and the amounts thereof. 42 SECTION 5. That Chapter 35, Title 63, Idaho Code, be, and the same is 43 hereby amended by the addition thereto of a NEW SECTION , to be 44 known and designated as Section 63-3503A, Idaho Code, and to read as follows: 45 63-3503A. FILING OPERATORS' STATEMENT -- ALLOTMENT AND APPORTIONMENT OF 46 TAX DUE FROM NATURAL GAS ASSOCIATIONS BY STATE TAX COMMISSION. Every coopera- 47 tive natural gas association in this state shall file with the state tax com- 48 mission of the state of Idaho the operators' statement provided for in section 49 63-404, Idaho Code, and shall include thereon a statement of the amount of its 4 1 gross earnings for the calendar year next preceding. Upon examining and veri- 2 fying said statement the state tax commission shall compute the amount of the 3 tax measured by the gross earnings and shall allot to each county in which the 4 operating property of such association is situate that proportion of the total 5 tax of such association shown to be due as the number of gas line miles of 6 transmission and distribution lines of such association situate in such county 7 bears to the total wire miles of transmission and distribution lines of such 8 association. The state tax commission shall then, for each county, apportion 9 the tax so allotted to the county among the several taxing units thereof 10 within which any operating property of such association is situate, by appor- 11 tioning to each such taxing unit that proportion of the tax so allotted to the 12 county as the gas line mileage factor for each such taxing unit bears to the 13 total of the gas line mileage factors of all such taxing units in the county, 14 and shall immediately notify the state superintendent of public instruction 15 and the county treasurer of such allotment and apportionment and the amounts 16 thereof. 17 SECTION 6. That Section 63-3504, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 63-3504. COLLECTION BY COUNTY TREASURER -- PENALTY AND INTEREST IMPOSED 20 WHEN DELINQUENT. Upon receipt of the notification of the allotment and appor- 21 tionment of such taxes by the state tax commission by the county treasurer, 22 said county treasurer shall, not later than June 15th of each year, notify 23 each cooperative electrical association and each natural gas cooperative 24 of the amount of taxes owed, and the apportionment thereof to the 25 county and to the several taxing districts in the county and such tax shall be 26 due and payable not later than July 1, following and, upon the payment 27 thereof, the county treasurer shall pay over to each taxing district its 28 apportionment as herein determined. Any such taxes not paid by July 1, as 29 aforesaid, shall become delinquent and a penalty of fiveper cent30 percent (5%) thereof shall be imposed, together with interest at 31 the rate of oneper centpercent (1%) per month from 32 July 1 until paid. 33 SECTION 7. That Section 63-3505, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 63-3505. TAXES A LIEN ON PROPERTY OF ASSOCIATION UNTIL PAID. All taxes 36 due and payable under this act shall be a lien on all property, real and per- 37 sonal, of the electrical or natural gas association owing the 38 same, as of June 15th of each year and shall be discharged only by the payment 39 thereof. In any action to enforce payment of any delinquent taxes due under 40 this act, the county prosecuting such action shall be entitled to a judgment 41 for the reasonable costs of prosecuting such action, as well as for the delin- 42 quent taxes, penalty and interest. 43 SECTION 8. That Section 63-3506, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 63-3506. ASSESSMENT OF NONOPERATING PROPERTY BY ASSESSOR. The 46 nonoperating property of any cooperative electrical or natural gas 47 association shall be assessed by the county assessor of the county 48 wherein such property is situate, and taxes levied against the same shall be a 49 lien, and shall be due and payable, in the same manner as are any other taxes 5 1 on property. 2 SECTION 9. This act shall be in full force and effect on and after Janu- 3 ary 1, 1999.
STATEMENT OF PURPOSE
RS 07974
This proposed legislation would add a new Section, 63-3503A,
Filing operators' statement -- allotment and apportionment of tax
due from Natural Gas Associations by State Commission. The State
Tax Commission shall compute the amount of the tax measured by the
gross earnings and shall allot to each county in which the
operating property of such association are situated that
proportion of the total tax of such association shown to be due as
the number of gas line miles of transmission and distribution
lines. It also makes technical corrections to 63-3502 I.C.
FISCAL NOTE
Based on 3.5% gross revenue, taxes distributed by the State
Tax Commission to counties in-lieu of property taxes.
Distributed as follows:
1999 $21,134
2000 $38,764
2001 $52,174
2002 $56,329
CONTACT: Rep. John Campbell
208-332-1000
STATEMENT OF PURPOSE/ FISCAL NOTE
686