1998 Legislation
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HOUSE BILL NO. 580 – Gaseous fuels, annual fee, increase

HOUSE BILL NO. 580

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Daily Data Tracking History



H0580.........................................by TRANSPORTATION AND DEFENSE
GASEOUS FUELS - ANNUAL FEE - Adds to, repeals and amends existing law
relating to tax returns for gasoline and special fuels taxes, to increase
the gaseous fuels annual fee, to clarify the exemption from fuel permit
requirements for intrastate vehicles over 26,000 pounds and to provide for
a gaseous fuels distributor's license.

02/02    House intro - 1st rdg - to printing
02/03    Rpt prt - to Transp
02/19    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 67-2-1
      AYES -- Barraclough, Barrett, Bell, Bieter, Bivens, Black(15),
      Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
      Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
      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, Schaefer, Stevenson, Stoicheff, Stone, Stubbs,
      Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood, Zimmermann,
      Mr Speaker
      NAYS -- Alltus, Sali
      Absent and excused -- Geddes
    Floor Sponsor - Kellogg
    Title apvd - to Senate
02/25    Senate intro - 1st rdg - to Transp
03/06    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 32-0-3
      AYES--Andreason, Boatright, 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,
      Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Branch, Ipsen, Sweeney
    Floor Sponsor - Ingram
    Title apvd - to House
03/17    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed - to Governor
03/19    Governor signed
         Session Law Chapter 103
         Effective: 07/01/98

Bill Text


H0580


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

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 580

                         BY TRANSPORTATION AND DEFENSE COMMITTEE

 1                                        AN ACT
 2    RELATING TO MOTOR FUELS TAX; AMENDING SECTION 41-4908, IDAHO CODE, TO  CLARIFY
 3        THAT THE ONE CENT PER GALLON TRANSFER FEE IMPOSED ON THE DELIVERY OR STOR-
 4        AGE  OF ALL PETROLEUM PRODUCTS APPLIES TO MOTOR FUELS TAXES AND TO PROVIDE
 5        CORRECT TERMINOLOGY; AMENDING  SECTION  63-2405,  IDAHO  CODE,  TO  DELETE
 6        IMPROPER  TERMINOLOGY;  AMENDING  SECTION  63-2406, IDAHO CODE, TO REQUIRE
 7        REMITTANCE OF TAX DUE UPON SUBMISSION OF  A  DISTRIBUTOR'S  REPORT  UNLESS
 8        AMOUNTS  DUE  ARE  PAID BY ELECTRONIC FUNDS TRANSFER, TO PROVIDE PENALTIES
 9        AND TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 63-2407, IDAHO  CODE,
10        TO  PROVIDE  CORRECT  TERMINOLOGY; REPEALING SECTIONS 63-2420 AND 63-2422,
11        IDAHO CODE; AMENDING SECTION 63-2423, IDAHO CODE, TO PROVIDE  CREDITS  AND
12        REFUNDS ON SPECIAL FUELS TAX PAID ON SPECIAL FUELS USED FOR PURPOSES OTHER
13        THAN  OPERATION  OF  MOTOR  VEHICLES ON THE HIGHWAY AND TO PROVIDE CORRECT
14        TERMINOLOGY; AMENDING SECTION 63-2424, IDAHO CODE, TO INCREASE THE  ANNUAL
15        FEE  COLLECTED  IN  LIEU OF THE EXCISE TAX ON GASEOUS FUELS AND TO PROVIDE
16        CORRECT TERMINOLOGY; AMENDING CHAPTER 24, TITLE 63,  IDAHO  CODE,  BY  THE
17        ADDITION  OF  A NEW SECTION 63-2427B, IDAHO CODE, TO PROVIDE FOR A GASEOUS
18        FUELS DISTRIBUTOR'S LICENSE; AMENDING  SECTION  63-2428,  IDAHO  CODE,  TO
19        DELETE  REFERENCES  TO  A  REPEALED  CODE  SECTION;  AND  AMENDING SECTION
20        63-2438, IDAHO CODE, TO PERMIT  CERTAIN  INTRASTATE  VEHICLES  TO  OPERATE
21        WITHOUT A FUEL PERMIT.

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

23        SECTION  1.  That  Section 41-4908, Idaho Code, be, and the same is hereby
24    amended to read as follows:

25        41-4908.  SOURCE OF TRUST FUND --  APPLICATION  FEES  --  APPLICATION  FOR
26    ENROLLMENT  --  TRANSFER  FEES.  (1) Every owner or operator of an underground
27    storage tank may, if he desires to apply to  the  trust  fund  to  insure  the
28    underground  tank, make application for and pay into the trust fund an initial
29    application fee set by the administrator, but not to exceed  twenty-five  dol-
30    lars ($25.00) for each tank for which application for coverage is made.
31        (2)  Every  owner  or  operator of an above ground storage tank may, if he
32    desires to apply to the trust fund to  insure  the  above  ground  tank,  make
33    application  for and pay into the trust fund an initial application fee set by
34    the administrator, but not to exceed twenty-five  dollars  ($25.00)  for  each
35    tank for which application for coverage is made.
36        (3)  Every owner or operator of a farm tank or residential tank may, if he
37    desires  to  apply  to the trust fund to insure the tank, make application for
38    and pay into the trust fund an initial application fee set by the  administra-
39    tor,  but  not  to exceed twenty-five dollars ($25.00) for each tank for which
40    application for coverage is made.
41        (4)  Every owner or operator of a heating tank may, if he desires to apply
42    to the trust fund to insure the tank, make application for and  pay  into  the
43    trust  fund  an  initial  application fee set by the administrator, but not to


                                          2

 1    exceed five dollars ($5.00) for each tank for which application  for  coverage
 2    is made.
 3        (5)  The  application  for insurance shall be made to the administrator on
 4    forms furnished and prescribed by him for the purpose of eliciting  reasonably
 5    available  information as to the type and use of the storage tank, the type of
 6    business enterprise of the tank owner or operator,  the  age  of  the  storage
 7    tank,  the  materials  used in the construction of the tank and the inside and
 8    outside protective coatings and  other  corrosion  protective  measures,  leak
 9    detection  methods,  spill  and  overfill  prevention methods of the tank, the
10    location of the tank and its proximity  to roads and buildings, the foundation
11    and type of material used as a bedding and fill for the  tank,  any  available
12    inspection  records  of  the  tank including the gallons of petroleum products
13    entered into the tank and the gallon dispersements from the  tank,  and  other
14    information that is reasonably prudent in order to obtain a sufficient body of
15    statistical  data  to  determine the relative hazards of various categories of
16    tanks, the potential that future leaks or discharges may occur, and the condi-
17    tions under which cleanup costs and personal injury and property damage  costs
18    may  occur  and vary in the severity of the release and the resultant costs to
19    the trust fund.
20        (6)  The administrator shall act upon the application for  insurance  with
21    all reasonable promptness, and he shall make such investigations of the appli-
22    cant  as  he  deems advisable to determine if the information contained in the
23    application for insurance is accurate and complete.  The  administrator  shall
24    determine  if  the applicant's storage tanks meet all the eligibility require-
25    ments and promptly notify the applicant of the acceptance or nonacceptance  of
26    the  application  for  insurance. The absence of unknown data requested on the
27    application shall not preclude an applicant's acceptance for coverage  by  the
28    trust  fund,  if  the applicant is otherwise eligible for insurance under this
29    chapter.
30        (7)  In addition to the application fees received by the trust fund pursu-
31    ant to this section, the trust fund shall receive the revenue produced by  the
32    imposition  of  a "transfer fee" of one cent ($.01) per gallon on the delivery
33    or storage of all petroleum products as defined in subsection (23) of  section
34    41-4903,  Idaho  Code,  delivered  or  stored  within the state of Idaho. This
35    transfer fee is hereby imposed upon the first licensed distributor  who  
36    transfers  title to   receives, as receipt is determined in section
37    63-2403, Idaho Code,  a petroleum product  to another legal  entity
38      within  this  state  for  the privilege of engaging in the delivery or
39    storage of petroleum products whose delivery or storage may present the danger
40    of a discharge into the environment  and  thus  create  the  liability  to  be
41    funded. The fee imposed by this subsection shall not apply to (a) petroleum or
42    petroleum products which are first delivered or stored in this state in a con-
43    tainer  of fifty-five (55) gallons or less if such container is intended to be
44    transferred to the ultimate consumer of the petroleum or petroleum products or
45    (b) petroleum or petroleum products delivered or stored in this state for  the
46    purpose of packaging or repackaging into containers of fifty-five (55) gallons
47    or  less  if such container is intended to be transferred to the ultimate con-
48    sumer of the petroleum or petroleum products.
49        (8)  The transfer fee shall be collected by the commission on  all  petro-
50    leum  products delivered or stored within this state after April 1, 1990. This
51    transfer fee shall be in addition to any excise tax imposed on   gasoline
52    and/or aircraft engine   motor  fuel or other petroleum prod-
53    ucts  and  shall  be remitted to the commission with the distributor's monthly
54    report as required in section 63-2406, Idaho Code. The distributor may  deduct
55    from  his  monthly  report  those  gallons of petroleum products returned to a


                                          3

 1    licensed distributor's refinery or pipeline terminal storage or exported  from
 2    the  state  when supported by proper documents approved by the commission. For
 3    the purpose of carrying out its duties under the provisions of  this  chapter,
 4    the  commission shall have the powers and duties provided in sections 63-3038,
 5    63-3039, 63-3042  through  63-3066,  63-3068,  63-3071,  and  63-3074  through
 6    63-3078,  Idaho  Code,  which sections are incorporated by reference herein as
 7    though set out verbatim.
 8        (9)  No person shall be excused from liability for any duty or fee imposed
 9    in this chapter for failure to obtain a distributor's license.
10        (10) The director shall certify to the commission  when  the  unencumbered
11    balance  in the trust fund equals thirty million dollars ($30,000,000). Effec-
12    tive the first day of the second month following the date of  such  certifica-
13    tion,  the  imposition of the transfer fee shall be suspended. Thereafter, the
14    director shall certify to the commission when the unencumbered balance in  the
15    trust  fund  equals  twenty million dollars ($20,000,000). Effective the first
16    day of the second month following the date of such certification, the  imposi-
17    tion of the transfer fee shall be reinitiated.

18        SECTION  2.  That  Section 63-2405, Idaho Code, be, and the same is hereby
19    amended to read as follows:

20        63-2405.  IMPOSITION OF TAX. (1) An excise tax is hereby  imposed  on  all
21    gasoline    and/or aircraft engine fuel  received. The tax is to be
22    paid by the licensed distributor, and measured by the total number of  gallons
23    of  gasoline   and/or aircraft engine fuel  received by him, at the
24    rate of twenty-five cents (25[) per gallon. That tax, together with  any  pen-
25    alty  and/or  interest  due,  shall be remitted with the monthly distributor's
26    report required in section 63-2406, Idaho Code.
27        (2)  The excise tax rate set forth in this section shall, when applied  to
28    gasohol  or to special fuels designed for use in diesel engines, be reduced by
29    the same percentage that the quantity of denatured anhydrous ethanol contained
30    in the gasoline or, in the case of special fuels the quantity of such  special
31    fuel  which  is derived from agricultural products or the wastes of such prod-
32    ucts, bears to the total fuel subject to tax. Provided however,  in  no  event
33    shall  the  rate  set  forth  in this section be reduced more than ten percent
34    (10%).

35        SECTION 3.  That Section 63-2406, Idaho Code, be, and the same  is  hereby
36    amended to read as follows:

37        63-2406.  DISTRIBUTOR  REPORTS. (1) Each distributor shall, not later than
38    the last day of each calendar month or for such other reporting period as  the
39    commission  may  authorize, render to the commission an accurate report of all
40     gasoline and/or aircraft engine   motor  fuel  received
41    by  him  in this state during the preceding reporting period. The report shall
42    be made in the manner and on forms required by the commission.
43        (2)  The distributor's report shall include:
44        (a)  An itemized statement of the total number of gallons of    gaso-
45        line   motor fuel  received during the preceding calendar
46        month;  and 
47        (b)    An  itemized  statement of the total number of gallons of air-
48        craft engine fuel received during the preceding calendar month; and
49        (c)   Other information as the commission may require for the proper
50        administration of this chapter.
51         (3)  The report shall be accompanied by  a  remittance  of  the  tax


                                          4

 1    shown  to  be due on the report together with any applicable interest and pen-
 2    alty, unless the amounts due are paid by electronic funds transfer in the man-
 3    ner provided by section 67-2026, Idaho Code.
 4        (4)  Any distributor required to collect the tax imposed by  this  chapter
 5    who  fails to collect such tax or any distributor required to remit tax pursu-
 6    ant to this section who fails to make such remittance, shall be liable to  the
 7    commission for the amount of tax not collected or remitted plus any applicable
 8    penalty  or  interest.  The  commission may collect such amounts in the manner
 9    provided in section 63-2434, Idaho Code. 

10        SECTION 4.  That Section 63-2407, Idaho Code, be, and the same  is  hereby
11    amended to read as follows:

12        63-2407.  DEDUCTIONS  AUTHORIZED.  Each  licensed distributor shall deduct
13    from his monthly report:
14        (1)   Gasoline and/or aircraft engine   Motor   fuel
15    exported  from  this  state  other than in the supply tanks of motor vehicles,
16    motor boats or aircraft when supported by a shipping  document  ,  
17      issued  by a common carrier,  an invoice signed by the purchaser,
18    or other proper documents approved by the commission but only if:
19        (a)  the purchaser is not a licensed distributor and the seller can estab-
20        lish that any tax due in the jurisdiction  to  which  the    gasoline
21        and/or aircraft engine   motor  fuel is destined is paid,
22        or
23        (b)  the  purchaser is a licensed distributor in the jurisdiction to which
24        the  gasoline and/or aircraft engine   motor    fuel
25        is destined.
26        (2)    Gasoline and/or aircraft engine   Motor  fuel
27    returned to a licensed distributor's refinery  or  pipeline  terminal  storage
28    when supported by proper documents approved by the commission.
29        (3)    Gasoline and/or aircraft engine   Motor  fuel
30    lost or destroyed by fire, lightning, flood, tornado, windstorm, explosion, or
31    other accidental casualty, after presenting  to  the  commission  satisfactory
32    proof of loss.
33        (4)  The  number  of  gallons which would be equal to one per cent (1%) of
34    the total number of gallons received during the  reporting  period,  less  the
35    total  number  of  gallons  deducted under subsections (1) through (3) of this
36    section, which credit is granted to the licensed distributor to reimburse  him
37    for  the  expense  incurred  on behalf of the state of Idaho in collecting and
38    remitting  gasoline and/or aircraft engine   motor  fuel
39    tax moneys, maintaining necessary records for the state,  preparing  necessary
40    reports  and  remittances  in  compliance with this chapter, and for loss from
41    evaporation, handling, spillage and shrinkage, except losses caused  by  casu-
42    alty  as  provided in subsection (3) of this section. The licensed distributor
43    may, in addition to the above, deduct the number of gallons equal to  one  per
44    cent  (1%) of the total number of gallons received during the preceding calen-
45    dar month, less the total number of gallons  deducted  under  subsections  (1)
46    through  (3)  of  this  section, to cover shrinkage, evaporation, spillage and
47    handling losses of a retail dealer. The latter deductions are  to  be  allowed
48    only  upon  filing  with  the  commission satisfactory evidence as may be pre-
49    scribed by it indicating the credit allowance has been made in  favor  of  the
50    retail  dealer  or  paid to him. The evidence shall be submitted together with
51    the report wherein this portion of the deduction is claimed. A  licensed  dis-
52    tributor  who sells and delivers  gasoline   motor fuel 
53    directly to the consumer and not for  resale  shall,  with  respect  to  those


                                          5

 1    sales, be deemed a retail dealer for the purposes of this section.
 2        (5)    Gasoline and/or aircraft engine   Motor  fuel
 3    sold to the Idaho national guard for use in aircraft and in vehicles used  off
 4    public highways provided, however, such deduction is supported by an exemption
 5    certificate signed by an authorized officer of the Idaho national guard.
 6        (6)  For  sales  made  on  or after July 1, 1995, taxes previously paid on
 7    gallons represented by accounts found to be worthless and actually charged-off
 8    for income tax purposes may be credited upon a subsequent payment of  the  tax
 9    provided in this chapter or, if no such tax is due, refunded. If such accounts
10    are  thereafter  collected,  the  tax  per gallon shall be paid based upon the
11    amount actually received divided by the price per gallon of the original  sale
12    multiplied by the appropriate tax rate.

13        SECTION  5.  That  Sections  63-2420  and 63-2422, Idaho Code, be, and the
14    same are hereby repealed.

15        SECTION 6.  That Section 63-2423, Idaho Code, be, and the same  is  hereby
16    amended to read as follows:

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

43        SECTION  7.  That  Section 63-2424, Idaho Code, be, and the same is hereby
44    amended to read as follows:

45        63-2424.  GASEOUS FUELS. (1) In the case of special fuels which are  in  a
46    gaseous  form,  the  commission shall provide by  regulation  
47    rule  the method to be used for converting the measurement of  the  fuel
48    to the equivalent of gallons for the purpose of applying tax rates. The method
49    provided  shall cause the tax rate provided in section 63-2405, Idaho Code, to
50    apply to an amount of gaseous fuels having energy equal to one (1)  gallon  of


                                          6

 1    gasoline.
 2        (2)  As  an  alternative  to the provisions of subsection (1) of this sec-
 3    tion, an annual fee in lieu of the excise tax may be collected  on  a  vehicle
 4    powered  by gaseous fuels. The rate of the fee shall be based on the following
 5    schedule for all types of gaseous fuels as adjusted by the formula for  prora-
 6    tion  set  out  below. The permits shall be sold by gaseous fuels vendors dis-
 7    pensing gaseous fuels into motor vehicles.


                                          7

 1             VEHICLE TONNAGE (GVW)          FEE
 2                   0 --  8,000            $  5  6 0.00
 3               8,001 -- 16,000            $  75  89 .00
 4              16,001 -- 26,000            $1 50  79 .00
 5              26,001 and above            $ 175  208 .00
 6    Permits for vehicles which are converted to gaseous fuels after the  first  of
 7    July  in  any  year  shall have the fee prorated for the appropriate number of
 8    months until renewal. The commission shall provide by  regulation  
 9     rule  the method to be used for converting the measurement of fuel
10    to  the  equivalent  of  gallons  for the purpose of applying increases in tax
11    rates after this law becomes effective. A decal issued by the  department
12      commission  shall be displayed in any vehicle for  which  a
13    permit  is  issued  hereunder as evidence that the annual fee has been paid in
14    lieu of the fuel tax. This decal shall be displayed in a conspicuous place.

15        SECTION 8.  That Chapter 24, Title 63, Idaho Code, be,  and  the  same  is
16    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
17    known and designated as Section 63-2427B, Idaho Code, and to read as follows:

18        63-2427B.  LICENSED GASEOUS FUELS DISTRIBUTORS -- REPORTS. (1)  In lieu of
19    the distributor's license required by section 63-2427A, Idaho Code,  the  com-
20    mission  may  issue a gaseous fuels distributor's license to a distributor who
21    applies for the license and who does not deal  in  fuel,  other  than  gaseous
22    fuels, except fuel which is either:
23        (a)  Motor  fuel  on  which  any tax due under this chapter has previously
24        been imposed upon a licensed distributor; or
25        (b)  Dyed fuel upon which the transfer fee  imposed  in  section  41-4908,
26        Idaho Code, has been imposed upon a licensed distributor.
27        (2)  Licensed  gaseous  fuels  distributors shall, not later than the last
28    day of each calendar month or for such other reporting period as  the  commis-
29    sion may authorize, render to the commission an accurate report of all gaseous
30    fuels  that are subject to tax under this chapter during the preceding report-
31    ing period. The report shall be made in the manner and on  forms  required  by
32    the  commission and shall include such other information as the commission may
33    require for the proper administration of this chapter.

34        SECTION 9.  That Section 63-2428, Idaho Code, be, and the same  is  hereby
35    amended to read as follows:

36        63-2428.  BONDING.  (1)  At  the  time  an application for a distributor's
37    license under section 63-2427A, Idaho Code, is submitted  to  the  commission,
38    the  applicant shall file a bond with the commission conditioned upon faithful
39    performance of all of the requirements of this chapter. The  total  amount  of
40    the  bond shall be fixed by the commission and shall be equivalent to at least
41    twice the estimated average tax liability for the reporting period  for  which
42    the  applicant  will  be  required to file  either  a distributor's
43    report under section 63-2406, Idaho Code , or a  special  fuels  dealer's
44    return  under  section  63-2420,  Idaho  Code,  or both. If a person is both a
45    licensed distributor and a licensed special fuels dealer, the bonding require-
46    ments in regard to each may be consolidated into a  single  bond  .  The
47    bond  required by this section shall in no case be less than one thousand dol-
48    lars ($1,000) nor more than two hundred thousand dollars ($200,000). Based  on
49    prior  years'  experience, the total amount required to be secured by the bond
50    may be increased or reduced by the commission at any time. The  bond  will  be
51    waived  if  the commission is satisfied that the distributor has the financial


                                          8

 1    responsibility to meet the required bond amount. Financial responsibility  may
 2    be  determined  by the commission upon review of all relevant public documents
 3    including appropriate county records and records of tax payments to the  state
 4    of Idaho.  The distributor can be required to provide a commercial credit rat-
 5    ing,  balance sheet, or income statement to demonstrate present financial sol-
 6    vency,  i.e. ownership of real  and/or  personal  property,  the  unencumbered
 7    value  of which exceeds the bond amount otherwise required.  If such financial
 8    solvency is established, and if the distributor has  been  doing  business  in
 9    Idaho as a licensed distributor for five (5) or more consecutive years without
10    a default in the payment of taxes imposed in this chapter, financial responsi-
11    bility  shall  be  presumed.   Any bond given in conjunction with this chapter
12    shall be a continuing instrument, and shall cover the period during which  the
13    license  in  connection  with which the bond is given is in effect, unless the
14    surety on the bond is released or discharged by the commission. Any surety  on
15    any bond furnished by a licensee shall be discharged and released from any and
16    all liability to the state accruing on the bond after the expiration of thirty
17    (30)  days from the date upon which the surety shall have lodged with the com-
18    mission a written request to be released and discharged. The request shall not
19    operate to relieve,  release  or  discharge  the  surety  from  any  liability
20    accrued,  or  which  will accrue, before the expiration of the thirty (30) day
21    period. The commission shall promptly, upon  receipt  of  the  notice  of  the
22    request, notify the licensee and require him to furnish a new bond. Unless the
23    licensee  files  a new bond with the commission in the amount provided in this
24    section before the expiration of the thirty (30) day  period,  the  commission
25    shall immediately cancel the licensee's license.
26        (2)  In  the event that any taxes due under the provisions of this chapter
27    are not paid by a licensed distributor ,   or a licensed  spe-
28    cial fuels dealer,  and the unpaid taxes are assessed by the commission,
29    and  after  all  avenues for appeal of the assessment have been exhausted, the
30    commission may apply the unpaid tax liability against  the  bond  required  by
31    this section.

32        SECTION  10.  That Section 63-2438, Idaho Code, be, and the same is hereby
33    amended to read as follows:

34        63-2438.  INTERNATIONAL FUEL TAX AGREEMENT (IFTA) LICENSE. (1) It shall be
35    unlawful for any person to consume special fuels in the operation  or  propul-
36    sion of a motor vehicle over twenty-six thousand (26,000) pounds maximum gross
37    weight on the highways of this state unless such motor vehicle is:
38        (a)  Licensed  under  the provisions of the international fuels tax agree-
39        ment; or
40        (b)  Operating under a temporary trip permit under section  49-432,  Idaho
41        Code; or
42        (c)    Registered  solely  for  operation in this state under section
43        49-434, Idaho Code, and is n  N ot  a vehicle proportion-
44        ally registered under section 49-435, Idaho Code.
45        (2)  The application for an Idaho IFTA license shall be made to  the  com-
46    mission  upon  a  form prepared and furnished by the commission and containing
47    such information as the commission deems necessary. Carriers  based  in  other
48    IFTA  jurisdictions  must  apply  to their base jurisdiction to obtain an IFTA
49    license.
50        (3)  No IFTA license shall be transferable.
51        (4)  The commission may collect a fee for issuance of the IFTA license and
52    decal, which fee shall not exceed the cost of issuance.

Statement of Purpose / Fiscal Impact








    STATEMENT OF PURPOSE
    RS07370C2 
    
   This bill amends the motor fuel tax laws to:
    
    
    
    
    * Combine the tax return filing requirements for gasoline and special fuels (diesel fuel) into a 
    single motor fuel tax return. This is done in sections 14 of the bill.
    
    * Increase the fee for gaseous fuels decals to correspond with the 1996 tax rate increase for 
    motor fuels and provide for a license for gaseous fuels vendors. Sections 5 and 6 of the bill.
    
    * Clearly authorize the operation of vehicles over 26,000 pounds maximum gross weight 
    without a fuel permit if they are registered solely for operation in Idaho. Section 7 of the bill.
    
    * Conform the legal incidence of the one-cent petroleum transfer fee to the legal incidence of 
    the motor fuels tax. Section 8 of the bill.
    
                              FISCAL IMPACT  
                             No fiscal effect.
                                     
                                  Contact
                                 :DanJohn/
                                TedSpanger
                                State Tax 
                                Commission
                                  334-7530
                                     
                                   H580