1998 Legislation
Print Friendly

HOUSE BILL NO. 519 – Sales tax/tangible personal proprty

HOUSE BILL NO. 519

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0519...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to expand the definition of tangible
personal property to clarify that advertising space is not subject to sales
and use tax when sold to an advertiser or its agent by the publisher of a
newspaper or the magazine in which the advertisement is displayed or
circulated.

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
02/12    3rd rdg - PASSED - 65-1-4
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
      Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
      Clark, Crane, Crow, Deal, Denney, Ellsworth, Field(13), Field(20),
      Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
      Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander,
      Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
      Miller, Mortensen, Pischner, Reynolds, Richman, Ridinger, Robison,
      Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman,
      Tippets, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- Newcomb
      Absent and excused -- Cuddy, Jones(9), Pomeroy, Trail
    Floor Sponsor - Gould
    Title apvd - to Senate
02/13    Senate intro - 1st rdg - to Loc Gov
02/17    Rpt out - rec d/p - to 2nd rdg
02/18    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
      Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Sorensen
    Floor Sponsor - Wheeler
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/16    To Governor
03/17    Governor signed
         Session Law Chapter 50
         Effective: 07/01/98

Bill Text


H0519


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

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 519

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO SALES AND USE TAX; AMENDING SECTION 63-3616, IDAHO CODE, TO EXPAND
 3        THE DEFINITION OF TANGIBLE PERSONAL PROPERTY TO CLARIFY  THAT  ADVERTISING
 4        SPACE  IS  NOT  SUBJECT TO SALES AND USE TAX WHEN SOLD TO AN ADVERTISER OR
 5        ITS AGENT BY THE PUBLISHER OF THE NEWSPAPER OR THE MAGAZINE IN  WHICH  THE
 6        ADVERTISEMENT IS DISPLAYED OR CIRCULATED.

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

 8        SECTION  1.  That  Section 63-3616, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        63-3616.  TANGIBLE PERSONAL PROPERTY.  (a)  The  term  "tangible  personal
11    property"  means  personal property which may be seen, weighed, measured, felt
12    or touched, or which is in any other manner perceptible to the senses.
13        (b)  The term "tangible personal property" includes any computer  software
14    which is not a custom computer program.
15        (i)  As  used  in  this subsection, the term "computer software" means any
16        computer program, part of a program or any sequence  of  instructions  for
17        automatic data processing equipment or information stored in an electronic
18        medium.  Computer  software is deemed to be tangible personal property for
19        purposes of this chapter regardless of the method by which the title, pos-
20        session or right to use the software is transferred to the user.
21        (ii)  As used in this subsection, the term "custom computer program" means
22        any computer software (as defined in this subsection) which is written  or
23        prepared  exclusively  for  a  customer and includes those services repre-
24        sented by separately stated  charges  for  the  modification  of  existing
25        prewritten  programs when the modifications are written or prepared exclu-
26        sively for a customer. The term does not include a "canned" or  prewritten
27        program  which  is held or existing for general or repeated sale, lease or
28        license, even if the program was initially developed on a custom basis  or
29        for  in-house  use. Modification to an existing prewritten program to meet
30        the customer's needs is custom computer programming only to the extent  of
31        the  modification,  and  only to the extent that the actual amount charged
32        for the modification is separately stated  on  invoices,  statements,  and
33        other billing documents supplied to the purchaser.
34          (c)  The  term "tangible personal property" does not include adver-
35    tising space when sold to an advertiser or its agent by the publisher  of  the
36    newspaper  or  the  magazine in which the advertisement is displayed or circu-
37    lated. 

Statement of Purpose / Fiscal Impact


    





                            STATEMENT OF PURPOSE
    
                                  RS07350
    
    This bill clarifies that Idaho sales and use taxes do not apply to the sale of advertising
    
    space in a newspaper or magazine.
    
    There is no fiscal effect.
    
    CONTACT
    Name: Dan John/Ted Spangler
    Agency: State Tax Commission
    Phone: 334-7530
    
    Statement of Purpose/Fiscal Impact
    
    FISCAL IMPACT
    
    H 519