1998 Legislation
Print Friendly

HOUSE BILL NO. 557 – Event promoter/sales tax compliance

HOUSE BILL NO. 557

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



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

Bill Text


H0557


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

                             IN 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 / Fiscal Impact


    





                            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