1998 Legislation
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HOUSE BILL NO. 786 – Motor fuels tax refunds, interest


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Daily Data Tracking History

H0786...............................................by REVENUE AND TAXATION
MOTOR FUELS - TAX - Amends existing law to provide for payment of interest
on refunds claimed on motor fuels and special fuels taxes.

02/27    House intro - 1st rdg - to printing
03/02    Rpt prt - to Transp
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 55-0-15
      AYES -- Barraclough, Barrett, Bell, Bieter, Bivens, Black(15),
      Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
      Crow, Cuddy, Deal, Denney, Field(20), Gagner, Gould, Hansen, Henbest,
      Jaquet, Jones(9), Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake,
      Linford, McKague, Meyer, Mortensen, Newcomb, Pomeroy, Reynolds,
      Richman, Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff,
      Stone, Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wood,
      Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Alltus, Ellsworth, Field(13), Geddes, Hadley,
      Hornbeck, Jones(22), Jones(20), Judd, Loertscher, Mader, Marley,
      Miller, Pischner, Wheeler
    Floor Sponsor - Cuddy
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Transp
03/13    Rpt out - rec d/p - to 2nd rdg
03/16    2nd rdg - to 3rd rdg
03/18    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
      Sweeney, Thorne, Twiggs, Wheeler, Whitworth
      Absent and excused--Hansen
    Floor Sponsor - Boatright
    Title apvd - to House
03/19    To enrol - rpt enrol - Sp signed
    Pres signed - to Governor
03/20    Governor signed
         Session Law Chapter 196
         Effective: 07/01/98

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 786

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 6        EST.

 7    Be It Enacted by the Legislature of the State of Idaho:

 8        SECTION  1.  That  Section 63-2410, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        63-2410.  REFUND OF GASOLINE TAX PROCEDURE. (1) Any person who shall  pur-
11    chase fifty (50) gallons or more, and use the gasoline in motor vehicles oper-
12    ated  on  highways  outside  of  the  state  of Idaho where a duplicate tax is
13    assessed for the same gasoline, shall be entitled to refund when  a  claim  is
14    presented  to  the  commission  in the manner required in subsection (5)(c) of
15    this section. Claimant shall present to the commission a statement accompanied
16    by a verification of the use determined by an audit  of  his  operations  con-
17    ducted  as  prescribed  by the tax commission; or his claim may be verified by
18    the filing of a receipt or proof showing the payment of tax  on  the  gasoline
19    used in any other state.
20        (2)  Any  person who shall purchase within any one (1) calendar year fifty
21    (50) gallons or more of gasoline used for the purposes described in this  sub-
22    section shall be entitled to be refunded the amount of gasoline tax previously
23    paid on that gasoline. Exempt uses are:
24        (a)  Operating stationary gasoline engines;
25        (b)  Propelling  equipment  or  vehicles, other than motor vehicles, which
26        are not operated on a highway; and
27        (c)  Operating commercial motor boats.
28        (3)  No refund of gasoline tax shall be allowed for any gasoline which is:
29        (a)  Used in motor vehicles required to be licensed or used in  any  motor
30        vehicle  exempt from registration by reason of the ownership or residence;
31        or
32        (b)  Aircraft engine fuel placed in aircraft, provided however, if tax has
33        been paid at the rate provided in section  63-2405,  Idaho  Code,  on  any
34        motor  fuel  placed in the fuel supply tank of an aircraft the user of the
35        fuel may apply for a refund of the difference between the tax paid on  the
36        fuel and the tax imposed in section 63-2408, Idaho Code; or
37        (c)  Gasoline used in recreational vehicles; or
38        (d)  Gasoline  used in noncommercial motor boats or in boats operated by a
39        governmental entity.
40        (4)  Any licensed distributor paying  the  gasoline  tax  and/or  aircraft
41    engine fuel tax to the state of Idaho erroneously shall be allowed a credit or
42    refund of the amount of tax paid by him if a written claim for refund is filed
43    with  the  commission  within  three (3) years after the date those taxes were


 1    paid. Such credit or refund shall include interest at the rate established  in
 2    section  63-3045,  Idaho  Code, computed from the date taxes to be refunded or
 3    credited were paid to the commission.
 4        (5)  (a) All claims for refund of gasoline taxes arising under  subsection
 5        (1),  (2) or (3)(b) of this section shall be filed in conjunction with the
 6        claimant's income tax return due pursuant to chapter 30, title  63,  Idaho
 7        Code. The gasoline tax refund claimed  shall be tax paid on gasoline actu-
 8        ally  purchased  during  the  taxable  year to which the income tax return
 9        relates. The gasoline tax refund due shall be  offset  against  any  other
10        taxes,  penalties  or  interest  due before any balance is refunded by the
11        commission to the claimant. Subject to a limitation as to  the  amount  of
12        refund  to be claimed as the commission may provide by rule, refund claims
13        may be submitted and paid on a monthly basis and reconciled on the  income
14        tax return when it is filed.
15        (b)  If  a  claimant  is  not  required  to file an income tax return, the
16        refund claim shall be made on forms and in the manner  as  the  commission
17        may  provide.  The  claim  shall relate to taxes paid on gasoline actually
18        purchased in the calendar year preceding the filing and the claim shall be
19        filed on or before April 15 following the close of the calendar year.
20        (c)  Claims for refunds under subsection (1) or (2) of this section  shall
21        be  filed within the time and in the manner prescribed in section 63-3072,
22        Idaho Code.  Such credit or refund shall include interest at the rate
23        established in section 63-3045, Idaho Code, computed from sixty (60)  days
24        following the later of the due date of the claimed refund under subsection
25        (5)(a) or (5)(b) of this section or the filing of the claim. 
26        (d)  The  commission  may  require  that  all claims be accompanied by the
27        original signed invoice or invoices issued to the  claimant,  showing  the
28        total  amount of gasoline on which a refund is claimed and the reason, the
29        amount of the tax and any additional information required by  the  commis-
30        sion.  Each  separate  delivery shall constitute a purchase and a separate
31        invoice shall be prepared, at least in duplicate, to cover  the  delivery.
32        All  invoices,  except  those  prepared  by a computer or similar machine,
33        shall be prepared in ink or double-spaced carbon shall be used between the
34        original and first duplicate.
35        (6)  (a) Should the commission find that the claim contains errors, it may
36        correct the claim and approve it  as  corrected,  or  the  commission  may
37        require  the claimant to file an amended claim. The commission may require
38        any person who makes a claim for refund to furnish a statement under oath,
39        giving his occupation, description of the machine or  equipment  in  which
40        the  gasoline  was used, the place where used and any other information as
41        the commission may require. If the commission determines  that  any  claim
42        has been fraudulently presented, or is supported by an invoice or invoices
43        fraudulently  made or altered, or that any statement in the claim or affi-
44        davit is willfully false and made for the purpose of misleading, the  com-
45        mission  may  reject the claim in full. If the claim is rejected, the com-
46        mission may suspend the claimant's right to any refund for purchases  made
47        during  a  period  not  to exceed one (1) year beginning with the date the
48        rejected claim was filed, and it shall take all other action deemed appro-
49        priate.
50        (b)  The commission has authority, in order to establish the  validity  of
51        any  claim, to examine the books and records of the claimant for that pur-
52        pose, and failure of the claimant to accede to the demand for the examina-
53        tion may constitute a waiver of all rights to the refund claimed.
54        (7)  In the event of the loss or destruction of the  original  invoice  or
55    invoices,  the  person  claiming  a  refund may submit a duplicate copy of the


 1    invoice certified by the vendor, but payment based on  the  duplicate  invoice
 2    shall  not be made until one (1) year after the date on which the gasoline was
 3    purchased.

 4        SECTION 2.  That Section 63-2423, Idaho Code, be, and the same  is  hereby
 5    amended to read as follows:

 6        63-2423.  CREDITS  AND  REFUNDS  TO CONSUMERS. (1) Any person who has paid
 7    his special fuels tax directly to the vendor from whom it was purchased  shall
 8    be refunded the amount of:
 9        (a)  Any  special  fuels tax paid on special fuels used for purposes other
10        than propulsion of motor vehicles upon the highways in the state of Idaho;
11        (b)  Any tax paid on special fuels used in motor vehicles owned or  leased
12        and  operated  by  an  instrumentality of the federal government or of the
13        state of Idaho, including the state and all of its political subdivisions;
14        (c)  Any tax paid on special fuels used in motor vehicles to which gaseous
15        special fuel is delivered and which displays a valid gaseous special fuels
16        permit under section 63-2424, Idaho Code;
17        (d)  Any special fuels tax paid on special fuels exported for use  outside
18        the  state of Idaho. Special fuels carried from the state in the fuel tank
19        of a motor vehicle will not be deemed to be exported from the state unless
20        it is subject to a like or similar tax in the state to which it  is  taken
21        and that tax is actually paid to the other state; and
22        (e)  Any  tax,  penalty  or interest erroneously or illegally paid or col-
23        lected.
24        (2)  No refund of special fuels tax shall be paid on:
25        (a)  Special fuels used in a recreational vehicle; or
26        (b)  Special fuels used in noncommercial motor boats  or  in  motor  boats
27        operated by a governmental entity.
28        (3)  Refunds  authorized in this section shall be claimed in the same man-
29    ner as applies to  refunds  of  gasoline  tax  under  section  63-2410,  Idaho
30    Code  ,  and shall be subject to interest computed pursuant to subsection
31    (5) of that section .

Statement of Purpose / Fiscal Impact


       RS 08154
    This bill provides for interest to be paid to consumers of 
    motor fuel used in a tax exempt manner. Refunds of the taxes are 
    subject to interest on refunds, and this bill will conform the motor 
    fuel statutes.
                                FISCAL NOTE
    Name: Dan John / Ted Spangler
    Agency: State Tax Commission
    Phone: 334-7530
    H 786