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HOUSE BILL NO. 123
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H0123...............................................by REVENUE AND TAXATION
SALES TAX - MOTOR VEHICLES - Amends existing sales tax law to provide a
definition of "motor vehicle"; to conform related sections of law to the
definition of "motor vehicle"; and to make technical corrections.
01/27 House intro - 1st rdg - to printing
01/29 Rpt prt - to Rev/Tax
02/03 Rpt out - rec d/p - to 2nd rdg
02/04 2nd rdg - to 3rd rdg
02/08 3rd rdg - PASSED - 65-0-5
AYES -- Alltus, Barraclough, Barrett, Bieter, Black, Boe, Bruneel,
Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
Kendell, Kjellander, Kunz, Lake, Limbaugh, Linford, Loertscher,
Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moyle,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Smith, Stevenson, Stoicheff, Stone, Tilman,
Tippets, Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Bell, Callister, Ellsworth, Taylor, Williams
Floor Sponsor - Kempton
Title apvd - to Senate
02/09 Senate intro - 1st rdg - to Loc Gov
02/19 Rpt out - rec d/p - to 2nd rdg
02/22 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 29-0-6
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen,
Keough, King, Lee, Noh, Richardson, Riggs, Risch, Sandy, Schroeder,
Sorensen, Stegner, Thorne, Wheeler, Whitworth
Absent and excused--Danielson, Darrington, McLaughlin, Parry,
Floor Sponsor - Bunderson
Title apvd - to House
02/26 To enrol
03/01 Rpt enrol - Sp signed
03/02 Pres signed - to Governor
03/08 Governor signed
Session Law Chapter 42
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 123
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES TAX ACT; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 63-3606B, IDAHO CODE, TO DEFINE "MOTOR VEHI-
4 CLE"; AMENDING SECTION 63-3610, IDAHO CODE, TO PROVIDE CONSISTENCY WITH
5 THE DEFINITION OF "MOTOR VEHICLE"; AMENDING SECTION 63-3613, IDAHO CODE,
6 TO PROVIDE THAT THE ALLOWANCE FOR BAD DEBTS IS NOT LIMITED TO BAD DEBTS
7 WRITTEN OFF FOR INCOME TAX PURPOSES AND TO MAKE TECHNICAL CORRECTIONS;
8 AMENDING SECTION 63-3621, IDAHO CODE, TO PROVIDE A DEFINITION OF
9 "RESIDENT" FOR PURPOSES OF A SUBSECTION AND TO MAKE TECHNICAL CORRECTIONS;
10 AMENDING SECTIONS 63-3622C AND 63-3622D, IDAHO CODE, TO PROVIDE CONSIS-
11 TENCY WITH THE DEFINITION OF "MOTOR VEHICLE"; AMENDING SECTION 63-3622K,
12 IDAHO CODE, TO PROVIDE CONSISTENCY WITH THE DEFINITION OF "MOTOR VEHICLE"
13 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-3622O, IDAHO CODE,
14 TO PROVIDE CONSISTENCY WITH THE DEFINITION OF "MOTOR VEHICLE" AND TO PRO-
15 VIDE A CORRECT CODE REFERENCE; AND AMENDING SECTIONS 63-3622R, 63-3622S,
16 63-3622T, 63-3622X, 63-3622JJ, 63-3623 AND 63-3638, IDAHO CODE, TO PROVIDE
17 CONSISTENCY WITH THE DEFINITION OF "MOTOR VEHICLE."
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
20 hereby amended by the addition thereto of a NEW SECTION , to be
21 known and designated as Section 63-3606B, Idaho Code, and to read as follows:
22 63-3606B. MOTOR VEHICLE. The term "motor vehicle" means a vehicle regis-
23 tered or required to be registered for use on public roads. The term "motor
24 vehicle" does not include vehicles not required to be registered pursuant to
25 section 49-426, Idaho Code, or intended for off-road use only, including snow-
26 mobiles, boats and aircraft, and all-terrain vehicles and off-road motorcycles
27 when not used on public roads.
28 SECTION 2. That Section 63-3610, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 63-3610. RETAILER. The term "retailer" includes:
31 (a) Every seller who makes any retail sale or sales of tangible personal
32 property and every person engaged in the business of making retail sales at
33 auction of tangible personal property owned by the person or others.
34 (b) Every person engaged in the business of making sales for storage,
35 use, or other consumption or in the business of making sales at auction of
36 tangible personal property owned by the person or others for storage, use, or
37 other consumption.
38 (c) Every person making more than two (2) retail sales of tangible per-
39 sonal property during any twelve (12) month period, including sales made in
40 the capacity of assignee for the benefit of creditors, or receiver or trustee
41 in bankruptcy, or every person making fewer sales who holds himself out as
1 engaging in the business of selling such tangible personal property at retail
2 or who sells a self-propelled motor vehicle.
3 (d) When the state tax commission determines that it is necessary for the
4 efficient administration of this act to regard any salesmen, representatives,
5 peddlers, or canvassers as agents of the dealers, distributors, supervisors,
6 or employers under whom they operate or from whom they obtain the tangible
7 personal property sold by them, irrespective of whether they are making sales
8 on their own behalf or on behalf of such dealers, distributors, supervisors,
9 or employers, the state tax commission may so regard them and may regard the
10 dealers, distributors, supervisors, or employers as retailers for the purpose
11 of this act.
12 (e) Persons conducting both contracting and retailing activities. Such
13 persons must keep separate accounts for the retail portion of their business
14 and pay tax in the usual fashion on this portion.
15 SECTION 3. That Section 63-3613, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-3613. SALES PRICE. (a) The term "sales price" means the total amount
18 for which tangible personal property, including services agreed to be rendered
19 as a part of the sale, is sold, rented or leased, valued in money, whether
20 paid in money or otherwise, without any deduction on account of any of the
22 1. The cost of the property sold. However, in accordance with such rules
23 as the state tax commission may prescribe, a deduction may be taken if the
24 retailer has purchased property for some purpose other than resale or
25 rental, has reimbursed his vendor for tax which the vendor is required to
26 pay to the state or has paid the use tax with respect to the property, and
27 has resold or rented the property prior to making any use of the property
28 other than retention, demonstration or display while holding it for sale
29 in the regular course of business. If such a deduction is taken by the
30 retailer, no refund or credit will be allowed to his vendor with respect
31 to the sale of the property.
32 2. The cost of materials used, labor or service cost, losses, or any
33 other expense.
34 3. The cost of transportation of the property prior to its sale.
35 4. The face value of manufacturer's discount coupons. A manufacturer's
36 discount coupon is a price reduction coupon presented by a consumer to a
37 retailer upon purchase of a manufacturer's product, the face value of
38 which may only be reimbursed by the manufacturer to the retailer.
39 (b) The term "sales price" does not include any of the following:
40 1. Retailer discounts allowed and taken on sales, but only to the extent
41 that such retailer discounts represent price adjustments as opposed to
42 cash discounts offered only as an inducement for prompt payment.
43 2. Any sums allowed on merchandise accepted in payment of other merchan-
44 dise, provided that this allowance shall not apply to the sale of a "new
45 manufactured home" or a "modular building" as defined herein.
46 3. The amount charged for property returned by customers when the amount
47 charged therefor is refunded either in cash or credit; but this exclusion
48 shall not apply in any instance when the customer, in order to obtain the
49 refund, is required to purchase other property at a price greater than the
50 amount charged for the property that is returned.
51 4. The amount charged for labor or services rendered in installing or
52 applying the property sold, provided that said amount is stated separately
53 and such separate statement is not used as a means of avoiding imposition
1 of this tax upon the actual sales price of the tangible personal property;
2 except that charges by a manufactured homes dealer for set up of a manu-
3 factured home shall be included in the "sales price" of such manufactured
5 5. The amount of any tax (not including, however, any manufacturers' or
6 importers' excise tax) imposed by the United States upon or with respect
7 to retail sales whether imposed upon the retailer or the consumer.
8 6. The amount charged for finance charges, carrying charges, service
9 charges, time-price differential, or interest on deferred payment sales,
10 provided such charges are not used as a means of avoiding imposition of
11 this tax upon the actual sales price of the tangible personal property.
12 7. Delivery and handling charges for transportation of tangible personal
13 property to the consumer, provided that the transportation is stated sepa-
14 rately and the separate statement is not used as a means of avoiding impo-
15 sition of the tax upon the actual sales price of the tangible personal
16 property; except that charges by a manufactured homes dealer for transpor-
17 tation of a manufactured home shall be included in the "sales price" of
18 such manufactured home.
19 8. Manufacturers' rebates when used at the time of a retail sale as a
20 down payment on or reduction to the retail sales price of a motor vehicle
21 to which the rebate applies. A manufacturer's rebate is a cash payment
22 made by a manufacturer to a consumer who has purchased or is purchasing
23 the manufacturer's product from the retailer.
24 9. The amount of any fee imposed upon an outfitter as defined in section
25 36-2102, Idaho Code, by a governmental entity pursuant to statute for the
26 purpose of conducting outfitting activities on land or water subject to
27 the jurisdiction of the governmental entity, provided that the fee is
28 stated separately and is presented as a use fee paid by the outfitted pub-
29 lic to be passed through to the governmental entity.
30 10. The amount of any discount or other price reduction on telecommunica-
31 tions equipment when offered as an inducement to the consumer to commence
32 or continue telecommunications service, or the amount of any commission or
33 other indirect compensation received by a retailer or seller as a result
34 of the consumer commencing or continuing telecommunications service.
35 (c) The sales price of a "new manufactured home" or a "modular building"
36 as defined in this act shall be limited to and include only fifty-five
37 per cent percent (55%) of the sales price as otherwise
38 defined herein.
39 (d) For sales made on and after January 1, 1967, t T
40 axes previously paid on amounts represented by accounts found to be
41 worthless and actually charged off for income tax purposes may be
42 credited upon a subsequent payment of the tax provided in this chapter or, if
43 no such tax is due, refunded. If such accounts are thereafter collected, a tax
44 shall be paid upon the amount so collected.
45 (e) Tangible personal property when sold at retail for more than eleven
46 cents ($.11) but less than one dollar and one cent ($1.01) through a vending
47 machine shall be deemed to have sold at a sales price equal to one hundred
48 seventeen per cent percent (117%) of the price which
49 is paid for such tangible personal property and/or its component parts includ-
50 ing packaging by the owner or operator of the vending machines.
51 SECTION 4. That Section 63-3621, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
1 is hereby imposed on the storage, use, or other consumption in this state of
2 tangible personal property acquired on or after July 1, 1965, for storage,
3 use, or other consumption in this state at the rate of five per cent
4 percent (5%) of the value of the property, and a recent
5 sales price shall be presumptive evidence of the value of the property unless
6 the property is wireless telecommunications equipment, in which case a recent
7 sales price shall be conclusive evidence of the value of the property.
8 (a) Every person storing, using, or otherwise consuming, in this state,
9 tangible personal property is liable for the tax. His liability is not extin-
10 guished until the tax has been paid to this state except that a receipt from a
11 retailer maintaining a place of business in this state or engaged in business
12 in this state given to the purchaser is sufficient to relieve the purchaser
13 from further liability for the tax to which the receipt refers. A retailer
14 shall not be considered to have stored, used or consumed wireless telecommuni-
15 cations equipment by virtue of giving, selling or otherwise transferring such
16 equipment at a discount as an inducement to a consumer to commence or continue
17 a contract for telecommunications service.
18 (b) Every retailer engaged in business in this state, and making sales of
19 tangible personal property for the storage, use, or other consumption in this
20 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
21 making the sales or, if storage, use or other consumption of the tangible per-
22 sonal property is not then taxable hereunder, at the time the storage, use or
23 other consumption becomes taxable, collect the tax from the purchaser and give
24 to the purchaser a receipt therefor in the manner and form prescribed by the
25 state tax commission.
26 (c) The provisions of this section shall not apply when the retailer pays
27 sales tax on the transaction and collects reimbursement for such sales tax
28 from the customer.
29 (d) Every retailer engaged in business in this state or maintaining a
30 place of business in this state shall register with the state tax commission
31 and give the name and address of all agents operating in this state, the loca-
32 tion of all distributions or sales houses or offices or other places of busi-
33 ness in this state, and such other information as the state tax commission may
35 (e) For the purpose of the proper administration of this act and to pre-
36 vent evasion of the use tax and the duty to collect the use tax, it shall be
37 presumed that tangible personal property sold by any person for delivery in
38 this state is sold for storage, use, or other consumption in this state. The
39 burden of proving the sale is tax exempt is upon the person who makes the sale
40 unless he obtains from the purchaser a resale certificate to the effect that
41 the property is purchased for resale or rental. It shall be presumed that
42 sales made to a person who has completed a resale certificate for the seller's
43 records are not taxable and the seller need not collect sales or use taxes
44 unless the tangible personal property purchased is taxable to the purchaser as
45 a matter of law in the particular instance claimed on the resale certificate.
46 A seller may accept a resale certificate from a purchaser prior to the
47 time of sale, at the time of sale, or at any reasonable time after the sale
48 when necessary to establish the privilege of the exemption. The resale certif-
49 icate relieves the person selling the property from the burden of proof only
50 if taken from a person who is engaged in the business of selling or renting
51 tangible personal property and who holds the permit provided for by section
52 63-3620, Idaho Code, or who is a retailer not engaged in business in this
53 state, and who, at the time of purchasing the tangible personal property,
54 intends to sell or rent it in the regular course of business or is unable to
55 ascertain at the time of purchase whether the property will be sold or will be
1 used for some other purpose. Other than as provided elsewhere in this section,
2 when a resale certificate, properly executed, is presented to the seller, the
3 seller has no duty or obligation to collect sales or use taxes in regard to
4 any sales transaction so documented regardless of whether the purchaser prop-
5 erly or improperly claimed an exemption. A seller so relieved of the obliga-
6 tion to collect tax is also relieved of any liability to the purchaser for
7 failure to collect tax or for making any report or disclosure of information
8 required or permitted under this chapter.
9 The resale certificate shall bear the name and address of the purchaser,
10 shall be signed by the purchaser or his agent, shall indicate the number of
11 the permit issued to the purchaser, or that the purchaser is an out-of-state
12 retailer, and shall indicate the general character of the tangible personal
13 property sold by the purchaser in the regular course of business. The certifi-
14 cate shall be substantially in such form as the state tax commission may pre-
16 (f) If a purchaser who gives a resale certificate makes any storage or
17 use of the property other than retention, demonstration or display while hold-
18 ing it for sale in the regular course of business, the storage or use is tax-
19 able as of the time the property is first so stored or used.
20 (g) Any person violating any provision of this section is guilty of a
21 misdemeanor and punishable by a fine not in excess of one hundred dollars
22 ($100), and each violation shall constitute a separate offense.
23 (h) It shall be presumed that tangible personal property shipped or
24 brought to this state by the purchaser was purchased from a retailer, for
25 storage, use or other consumption in this state.
26 (i) It shall be presumed that tangible personal property delivered out-
27 side this state to a purchaser known by the retailer to be a resident of this
28 state was purchased from a retailer for storage, use, or other consumption in
29 this state. This presumption may be controverted by evidence satisfactory to
30 the state tax commission that the property was not purchased for storage, use,
31 or other consumption in this state.
32 (j) When the tangible personal property subject to use tax has been sub-
33 jected to a general retail sales or use tax by another state of the United
34 States in an amount equal to or greater than the amount of the Idaho tax, and
35 evidence can be given of such payment, the property will not be subject to
36 Idaho use tax. If the amount paid the other state was less, the property will
37 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
38 the other state. For the purposes of this subsection, a registration certifi-
39 cate or title issued by another state or subdivision thereof for a vehicle or
40 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
41 cient evidence of payment of a general retail sales or use tax.
42 (k) The use tax herein imposed shall not apply to the use by a nonresi-
43 dent of this state of a motor vehicle which is registered or licensed under
44 the laws of the state of his residence and is not used in this state more than
45 a cumulative period of time totaling ninety (90) days in any consecutive
46 twelve (12) months, and which is not required to be registered or licensed
47 under the laws of this state . , or
48 (l) The use tax herein imposed shall not apply to the use of
49 household goods , and personal effects and pri-
50 vate automobiles by a bona fide resident of this state, if
51 such articles were acquired by such person in another state while a bona
52 fide resident thereof of that state and pri-
53 marily for use outside this state and if such use was actual and substantial,
54 but if an article was acquired less than three (3) months prior to the time he
55 entered this state, it will be presumed that the article was acquired for use
1 in this state and that its use outside this state was not actual and substan-
2 tial. For purposes of this subsection, "resident" shall be as defined in
3 section 63-3013 or 63-3013A, Idaho Code.
4 ( l m ) The use tax herein imposed shall not apply
5 to the storage, use or other consumption of tangible personal property which
6 is or will be incorporated into real property and which has been donated to
7 and has become the property of:
8 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
10 (2) The state of Idaho; or
11 (3) Any political subdivision of the state.
12 This exemption applies whether the tangible personal property is incorporated
13 in real property by the donee, a contractor or subcontractor of the donee, or
14 any other person.
15 SECTION 5. That Section 63-3622C, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-3622C. MOTOR FUELS SUBJECT TO TAX. There are exempted from the taxes
18 imposed by this chapter purchases which are subject to the motor fuels tax
19 imposed by chapter 24, title 63, Idaho Code, and purchases upon which motor
20 fuels taxes have actually been paid and the sale or use of any fuel which is
21 subsequently transported outside the state for use thereafter outside the
22 state. Nothing in this chapter shall be construed to authorize the imposition
23 of a tax on fuel brought into this state in the fuel tanks of motor
24 vehicles or railroad locomotives in interstate commerce.
25 SECTION 6. That Section 63-3622D, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 63-3622D. PRODUCTION EXEMPTION. There are exempted from the taxes imposed
28 by this chapter:
29 (a) The sale at retail, storage, use or other consumption in this state
31 (1) Tangible personal property which will enter into and become an ingre-
32 dient or component part of tangible personal property manufactured, proc-
33 essed, mined, produced or fabricated for sale.
34 (2) Tangible personal property primarily and directly used or consumed in
35 or during a manufacturing, processing, mining, farming, or fabricating
36 operation, including, but not limited to, repair parts, lubricants,
37 hydraulic oil, and coolants, which become a component part of such tangi-
38 ble personal property; provided that the use or consumption of such tangi-
39 ble personal property is necessary or essential to the performance of such
41 (3) Chemicals, catalysts, and other materials which are used for the pur-
42 pose of producing or inducing a chemical or physical change in the product
43 or for removing impurities from the product or otherwise placing the prod-
44 uct in a more marketable condition as part of an operation described in
45 subsection (a)(2) of this section, and chemicals and equipment used in
46 clean-in-place systems in the food processing and food manufacturing
48 (4) Safety equipment and supplies required to meet a safety standard of a
49 state or federal agency when such safety equipment and supplies are used
50 as part of an operation described in subsection (a)(2) of this section.
51 (5) Plants to be used as part of a farming operation.
1 (b) Other than as provided in subsection (c) of this section, the exemp-
2 tions allowed in subsections (a)(1), (2), (3) and (4) of this section are
3 available only to a business or separately operated segment of a business
4 which is primarily devoted to producing tangible personal property which that
5 business will sell and which is intended for ultimate sale at retail within
6 or without this state. A contractor providing services to a business entitled
7 to an exemption under this section is not exempt as to any property owned,
8 leased, rented or used by it unless, as a result of the terms of the contract,
9 the use of the property is exempt under section 63-3615(b), Idaho Code.
10 (c) The exemptions allowed in subsections (a)(1), (a)(2), (a)(3) and
11 (a)(4) of this section shall also be available to a business, or separately
12 operated segment of a business, engaged in farming or mining, whether as a
13 subcontractor, contractor, contractee or subcontractee, when such business or
14 segment of a business is primarily devoted to producing tangible personal
15 property which is intended for ultimate sale at retail within or without this
16 state, without regard to the ownership of the product being produced.
17 (d) As used in this section, the term "directly used or consumed in or
18 during" a farming operation means the performance of a function reasonably
19 necessary to the operation of the total farming business, including, the
20 planting, growing, harvesting and initial storage of crops and other agricul-
21 tural products and movement of crops and produce from the place of harvest to
22 the place of initial storage. It includes disinfectants used in the dairy
23 industry to clean cow udders or to clean pipes, vats or other milking equip-
25 (e) The exemptions allowed in this section do not include machinery,
26 equipment, materials and supplies used in a manner that is incidental to the
27 manufacturing, processing, mining, farming or fabricating operations such as
28 maintenance and janitorial equipment and supplies.
29 (f) Without regard to the use of such property, this section does not
31 (1) Hand tools with a unit purchase price not in excess of one hundred
32 dollars ($100). A hand tool is an instrument used or worked by hand.
33 (2) Tangible personal property used in any activities other than the
34 actual manufacturing, processing, mining, farming or fabricating opera-
35 tions such as office equipment and supplies, and equipment and supplies
36 used in selling or distributing activities.
37 (3) Property used in research or development.
38 (4) Property used in transportation activities.
39 (5) Machinery, equipment, tools or other property used to make repairs.
40 This subsection does not include repair parts that become a component part
41 of tangible property exempt from tax under this section or lubricants,
42 hydraulic oil, or coolants used in the operation of tangible personal
43 property exempt under this section.
44 (6) Machinery, equipment, tools or other property used to manufacture,
45 fabricate, assemble or install tangible personal property which is:
46 (i) Not held for resale in the regular course of business; and
47 (ii) Owned by the manufacturer, processor, miner, farmer or fabrica-
49 provided, however, this subsection does not prevent exemption of machin-
50 ery, equipment, tools or other property exempted from tax under subsection
51 (a)(2) or (a)(3) of this section.
52 (7) Any improvement to real property or fixture thereto or any tangible
53 personal property which becomes or is intended to become a component of
54 any real property or any improvement or fixture thereto.
55 (8) Motor vehicles licensed or required to be licensed by the laws
1 of this state or another state or any and aircraft.
2 (9) Tangible personal property used or consumed in processing, producing
3 or fabricating tangible personal property exempted from tax under this
4 chapter in sections 63-3622F, 63-3622G and 63-3622I, Idaho Code.
5 (10) Tangible personal property described in section 63-3622HH, Idaho
7 (g) Any tangible personal property exempt under this section which ceases
8 to qualify for this exemption, and does not qualify for any other exemption or
9 exclusion of the taxes imposed by this chapter, shall be subject to use tax
10 based upon its value at the time it ceases to qualify for exemption. Any tan-
11 gible personal property taxed under this chapter which later qualifies for
12 this exemption shall not entitle the owner of it to any claim for refund.
13 SECTION 7. That Section 63-3622K, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 63-3622K. OCCASIONAL SALES. (a) There are exempted from the taxes imposed
16 by this chapter occasional sales of tangible personal property.
17 (b) As used in this section, the term "occasional sale" means:
18 (1) A sale of property not held or used by a person in the course of an
19 activity for which he is required to hold a seller's permit, provided such
20 sale is not one (1) of a series of sales sufficient in number or of such a
21 nature as to constitute the seller a "retailer" under section 63-3610(c),
22 Idaho Code.
23 (2) Any transfer of all or substantially all of the property held or used
24 by a person in a business requiring a seller's permit when, after such
25 transfer, the real or ultimate ownership of such property is substantially
26 similar to that which existed before such transfer. For the purpose of
27 this section, stockholders, bondholders, partners, or other persons hold-
28 ing an interest in a corporation or other entity are regarded as having a
29 "real or ultimate ownership" of the property of such corporation or other
31 (3) A transfer of capital assets to or by a business when the transfer is
32 accomplished through an adjustment of the beneficial interest of the busi-
33 ness and the transferor has paid sales or use taxes pursuant to section
34 63-3619 or 63-3621, Idaho Code, on the capital assets, incidental to:
35 (i) A division of joint venture, partnership, or limited liability
36 company assets among the members or partners in exchange for a pro-
37 portional reduction of the transferee's interest in the joint ven-
38 ture, partnership, or limited liability company. For the purposes of
39 this section, the term "limited liability company" means a business
40 organization as defined in chapter 6, title 53, Idaho Code;
41 (ii) The formation of a partnership, joint venture, or limited lia-
42 bility company by the transfer of assets to the partnership, joint
43 venture, or limited liability company or transfers to a partnership,
44 joint venture, or limited liability company in exchange for propor-
45 tionate interests in the partnership, joint venture, or limited lia-
46 bility company;
47 (iii) The formation of a corporation by the owners of a business and
48 the transfer of their business assets to the corporation in exchange
49 for stock in proportion to assets contributed;
50 (iv) The transfer of assets of shareholders in the formation or dis-
51 solution of a corporation;
52 (v) The transfer of capital assets by a corporation to its stock-
53 holders in exchange for surrender of capital stock;
1 (vi) The transfer of assets from a parent corporation to a subsid-
2 iary corporation which is owned at least eighty per cent
3 percent (80%) by the parent corporation, which transfer
4 is solely in exchange for stock or securities of the subsidiary cor-
6 (vii) The transfer of assets from a subsidiary corporation which is
7 owned at least eighty per cent percent
8 (80%) by the parent corporation to a parent corporation or another
9 subsidiary which is owned at least eighty per cent
10 percent (80%) by the parent corporation, which transfer is
11 solely in exchange for stock or securities of the parent corporation
12 or the subsidiary which received the assets.
13 (4) The sale, lease or rental of a capital asset in substantially the
14 same form as acquired by the transferor and on which the initial transfer-
15 or has paid sales or use taxes pursuant to section 63-3619 or 63-3621,
16 Idaho Code, when the owners of all of the outstanding stock, equity or
17 interest of the transferor are the same as the transferee or are members
18 of the same family within the second degree of consanguinity or affinity.
19 (5) The sale of substantially all of the operating assets of a business
20 or of a separate division, branch, or identifiable segment to a buyer who
21 continues operation of the business. For the purpose of this subsection, a
22 "separate division, branch, or identifiable segment" shall be deemed to
23 exist if, prior to its sale, the income and expense attributable to such
24 "separate division, branch, or identifiable segment" could be separately
25 ascertained from the books of accounts and records.
26 (6) Sales by persons who are not defined as "retailers" in section
27 63-3610, Idaho Code.
28 (7) Sales of animals by any 4-H club or FFA club held in conjunction with
29 a fair or the western Idaho spring lamb sale.
30 (8) The sale or purchase of tangible personal property at home yard
31 sales; provided however, that no more than two (2) such home yard sales
32 per individual calendar year shall be exempt.
33 (c) As used in this section, the term "occasional sale," when applied to
34 the sale of a self-propelled motor vehicle, means only:
35 (1) Sales of motor vehicles between members of a family related within
36 the second degree of consanguinity, unless a sales or use tax was not
37 imposed on the sale of that motor vehicle at the time of purchase, in
38 which situation the sale is taxable.
39 (2) Sales of motor vehicles that fall within the scope of the transac-
40 tions detailed in subsection (b)(2) through (b)(5) of this section.
41 (d) The exemption provided by subsection (b)(1), (b)(4), (b)(6) or (b)(8)
42 of this section shall not apply to the sale, purchase or use of aircraft, as
43 defined in section 21-201, Idaho Code, nor shall it apply to the sale, pur-
44 chase or use of boats or vessels, as defined in section 67-7003, Idaho Code,
45 nor shall it apply to the sale, purchase or use of snowmobiles, recreational
46 vehicles or off-highway motorbikes, as defined in section 63-3622HH, Idaho
48 SECTION 8. That Section 63-3622O, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 63-3622O. EXEMPT PRIVATE AND PUBLIC ORGANIZATIONS. (1) There are exempted
51 from the taxes imposed by this chapter:
52 (a) Sales to or purchases by hospitals, health-related entities, educa-
53 tional institutions, forest-protective associations and canal companies
1 which are nonprofit organizations; and
2 (b) Donations to, sales to, and purchases by the Idaho Foodbank Ware-
3 house, Inc.; and
4 (c) Donations to, sales to, and purchases by food banks or soup kitchens
5 of food or other tangible personal property used by food banks or soup
6 kitchens in the growing, storage, preparation or service of food, but not
7 including licensed motor vehicles or trailers; and
8 (d) Sales of clothes to, donations of clothes to, and purchases of
9 clothes by nonsale clothiers; and
10 (e) Sales to or purchases by centers for independent living; and
11 (f) Sales to or purchases by the state of Idaho and its agencies and its
12 political subdivisions.
13 (2) As used in this section, these words shall have the following mean-
15 (a) "Educational institution" shall mean nonprofit colleges, universi-
16 ties, primary and secondary schools, the income of which is devoted solely
17 to education and in which systematic instruction in the usual branches of
18 learning is given. This definition does not include schools primarily
19 teaching business, dancing, dramatics, music, cosmetology, writing, gym-
20 nastics, exercise and other special accomplishments nor parent-teacher
21 associations, parent groups, alumni or other auxiliary organizations with
22 purposes related to the educational function of an institution or collec-
23 tive group of institutions.
24 (b) "Hospital" shall include nonprofit institutions licensed by the state
25 for the care of ill persons. It shall not extend to nursing homes or simi-
26 lar institutions.
27 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun-
28 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes,
29 American Cancer Society, Mental Health Association, The Arc, Idaho Heart
30 Association, Idaho Ronald McDonald House, United Cerebral Palsy, Arthritis
31 Foundation, Muscular Dystrophy Foundation, National Multiple Sclerosis
32 Society, Rocky Mountain Kidney Association, American Diabetes Association,
33 Easter Seals, and Idaho Special Olympics, together with said entities'
34 local or regional chapters or divisions.
35 (d) "Canal companies" shall include nonprofit corporations which are
36 incorporated solely for the purpose of operating and maintaining and are
37 engaged solely in operation and maintenance of dams, reservoirs, canals,
38 lateral and drainage ditches, pumps or pumping plants.
39 (e) "Forest protective associations" shall mean associations whose pur-
40 pose is the furnishing, operating and maintaining of a protective system
41 for the detection, prevention and suppression of forest or range fires.
42 Forest protective associations shall include only those associations with
43 which the state of Idaho has contracted or become a member of pursuant to
44 chapter 1, title 38, Idaho Code.
45 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or
46 association, other than the Idaho Foodbank Warehouse, Inc., one of whose
47 regular activities is the furnishing or providing of food or food products
48 to others without charge.
49 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa-
50 tion one of whose primary purposes is the furnishing or providing of
51 clothes to others without charge.
52 (h) "Clothes" shall mean garments in general, designed or intended to be
53 worn by humans and shall include footwear in addition to wearing apparel.
54 (i) "Center for independent living" shall mean a private, nonprofit, non-
55 residential organization in which at least fifty-one percent (51%) of the
1 principal governing board, management and staff are individuals with dis-
2 abilities and that:
3 (i) Is designed and operated within a local community by individu-
4 als with disabilities;
5 (ii) Provides an array of independent living services and programs;
7 (iii) Is cross-disability.
8 (j) "Political subdivision" means:
9 (i) A governmental organization which:
10 1. Embraces a certain territory,
11 2. Is organized for public advantage and not in the interest of
12 private individuals or classes,
13 3. Has been delegated functions of government, and
14 4. Has the statutory power to levy taxes; or
15 (ii) A public health district created by section 39-408, Idaho
16 Code; or
17 (iii) A soil conservation district as defined in section 22-2717,
18 Idaho Code; or
19 (iv) A drainage district created pursuant to chapter 29, title 42,
20 Idaho Code; or
21 (v) An irrigation district created pursuant to title 43, Idaho
22 Code; or
23 (vi) A state grazing board created by section 57-1204, Idaho Code;
25 (vii) A water measurement district created pursuant to section
26 42-705 or 42-706, Idaho Code; or
27 (viii) A ground water management district created pursuant to chapter
28 51, title 42, Idaho Code.
29 ( ix k ) An a "A gency of
30 the state of Idaho " is shall mean
31 an office or organization created by the constitution or statutes of this
32 state and constituting a component part of the executive, judicial or leg-
33 islative branch of the government of this state.
34 (3) The exemption granted by subsection (1)(f) of this section does not
35 include any association or other organization whose members are political sub-
36 divisions or state agencies unless the organization is expressly created under
37 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
38 (4) The exemption s granted by subsection (1) (f)
39 of this section do es not include the use of tangible personal
40 property by a contractor used to improve real property of an exempt entity
41 when such use is within the definition provided by section 63-3615(b), Idaho
42 Code, whether the use tax liability is included in a contract total or stated
43 separately in a contract.
44 (5) There is exempted from the taxes imposed in this chapter, the renting
45 of a place to sleep to an individual by the Idaho Ronald McDonald House.
46 SECTION 9. That Section 63-3622R, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 63-3622R. MOTOR VEHICLES AND USED MOBILE HOMES. There are exempted from
49 the taxes imposed by this chapter:
50 (a) Sales of motor vehicles for use outside of this state, even though
51 delivery be made within this state, but only when:
52 (1) The motor vehicles or trailers will be taken from the
53 point of delivery in this state directly to a point outside this state;
2 (2) Said The motor vehicles and trailers will
3 be titled and licensed immediately under the laws of another state, will
4 not be used in this state more than twenty-five percent (25%) of the mile-
5 age in any calendar year, and will not be required to be titled under the
6 laws of this state.
7 (b) Sale of used manufactured homes, whether or not such used manufac-
8 tured homes are sold for use outside this state, and whether or not such used
9 manufactured homes are sold by a dealer. Every manufactured home sale after
10 its sale as a "new manufactured home," as defined in section 63-3606, Idaho
11 Code, is a sale as a used manufactured home.
12 (c) Sale or lease of motor vehicles with a maximum gross registered
13 weight over twenty-six thousand (26,000) pounds, which shall be immediately
14 registered under the international registration plan or similar proportional
15 or pro rata registration system, whether or not base plated in Idaho, and the
16 sale or lease of trailers which are part of a fleet of vehicles registered
17 under such proportional or pro rata registration system when such vehicles and
18 trailers are substantially used in interstate commerce. If such a motor
19 vehicle or trailer is not substantially used in interstate commerce
20 during any calendar year, it shall be deemed used in Idaho and subject to the
21 use tax under section 63-3621, Idaho Code. For the purpose of this subsection,
22 "substantially used in interstate commerce" means that the vehicles or
23 trailers will be part of a fleet with a minimum of ten percent (10%) of the
24 miles operated by the fleet accrued outside of Idaho in any calendar year.
25 (d) The use or other consumption of a motor vehicle temporarily donated
26 to a driver's education program sponsored by a nonprofit educational institu-
27 tion as defined in section 63-3622O, Idaho Code.
28 SECTION 10. That Section 63-3622S, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 63-3622S. RADIO AND TELEVISION BROADCASTING EQUIPMENT. There are exempted
31 from the taxes imposed by this chapter receipts from the sale, storage, use or
32 other consumption in this state of tangible personal property directly used
33 and consumed in the production and broadcasting of radio and television pro-
34 grams when the purchase, storage, use or other consumption is by a business or
35 segment of a business which is primarily devoted to such production and broad-
36 casting, provided, that the use or consumption of such tangible personal prop-
37 erty is necessary or essential to the performance of such operation. This
38 exemption does not include machinery, equipment, materials and supplies used
39 in a manner that is incidental to the production and broadcasting operation,
40 such as maintenance and janitorial equipment and supplies and hand tools with
41 a unit price not in excess of one hundred dollars ($100); nor does it include
42 tangible personal property used in any activities other than actual production
43 and broadcasting operation such as office equipment and supplies, equipment
44 and supplies used in selling and distributing activities, in research, or in
45 transportation activities; nor shall this exemption include motor vehicles or
46 aircraft , required to be licensed by the laws of this
47 state, without regard to the use to which such motor vehicles or air-
48 craft are put.
49 SECTION 11. That Section 63-3622T, Idaho Code, be, and the same is hereby
50 amended to read as follows:
51 63-3622T. EQUIPMENT TO PRODUCE CERTAIN NEWSPAPERS. There are exempted
1 from the taxes imposed by this chapter:
2 (a) Receipts from the sale, storage, use or other consumption in this
3 state of tangible personal property directly used and consumed in the produc-
4 tion of publications in a newspaper format which are distributed to the pub-
5 lic at large and which rely on advertising revenue as their primary source of
6 income; provided, that the purchase, storage, use or other consumption is by a
7 business or segment of a business which is primarily devoted to such produc-
8 tion of said publications; provided, further, that the use or consumption of
9 such tangible personal property is necessary or essential to the performance
10 of such publication business. This exemption does not include machinery,
11 equipment, materials and supplies used in a manner that is incidental to the
12 production of said publications, such as maintenance and janitorial equipment
13 and supplies and hand tools with a unit price not in excess of one hundred
14 dollars ($100); nor does it include tangible personal property used in any
15 activities other than the actual production of the publication and shall not
16 include property such as office equipment and supplies, equipment and supplies
17 used in selling and distributing activities, in research or in transportation
18 activities; nor shall this exemption include motor vehicles or aircraft
19 required to be licensed by the laws of this state without regard to the
20 use to which such motor vehicles or aircraft are put.
21 (b) Provided, further, that this exemption shall apply when the publica-
22 tion referred to herein is distributed to the public free of charge.
23 (c) Provided, further, that in order for the exemption to be applicable,
24 at least ten percent (10%) of the total publication, computed on an average
25 annual column inch basis, must be devoted to the publication of nonincome pro-
26 ducing informative material.
27 SECTION 12. That Section 63-3622X, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3622X. POLLUTION CONTROL EQUIPMENT. There is hereby exempted from the
30 taxes imposed by this chapter the sale, use or purchase of tangible personal
31 property, which property is pollution control equipment required to meet air
32 and water quality standards of a state or federal agency having authority to
33 regulate and set air and water quality emission standards.
34 This exemption applies to the purchase of dry cleaning equipment that is
35 designed to protect employees from exposure to perchloroethylene as well as
36 retaining the fluid in the machine in order to protect sewer systems and air
37 quality standards. Dry cleaning machines meeting these standards are referred
38 to as "dry to dry transfer systems."
39 This exemption does not include motor vehicles or aircraft ,
40 required to be licensed by the laws of this state, without regard
41 to the use to which such motor vehicles or aircraft are put.
42 SECTION 13. That Section 63-3622JJ, Idaho Code, be, and the same is
43 hereby amended to read as follows:
44 63-3622JJ. LOGGING EXEMPTION. There are exempted from the taxes imposed
45 by this chapter:
46 (1) The sale at retail, storage, use or other consumption in this state
47 of tangible personal property which is primarily and directly used or consumed
48 in logging including, but not limited to, log loaders, log jammers, log
49 skidders and fuel used in logging trucks, provided that the use or consumption
50 of such tangible personal property is necessary or essential to logging.
51 (2) The exemption allowed by subsection (1) of this section does not
1 include machinery, equipment, materials and supplies used in a manner that is
2 incidental to logging such as maintenance and janitorial equipment and sup-
3 plies, and hand tools with a unit purchase price not in excess of one hundred
4 dollars ($100); nor does it include tangible personal property used in any
5 activities other than the actual logging, such as office equipment and sup-
6 plies, equipment and supplies used in selling or distributing activities, in
7 research, or, except for fuel used in logging trucks, in transportation activ-
8 ities; nor shall this exemption include motor vehicles or aircraft ,
9 licensed or required to be licensed by the laws of this state,
10 without regard to the use to which such motor vehicles or aircraft are
11 put; nor shall this exemption apply to vehicles or equipment described in sec-
12 tion 63-3622HH, Idaho Code; nor shall this exemption include tangible personal
13 property used to produce tangible personal property exempted from the tax
14 under this chapter by section 63-3622G, Idaho Code.
15 SECTION 14. That Section 63-3623, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-3623. RETURNS AND PAYMENTS. (a) The taxes imposed by this act are due
18 and payable to the state tax commission monthly on or before the twentieth day
19 of the succeeding month.
20 (b) All moneys collected or received by the state tax commission from the
21 taxes, penalties, interest and fees imposed by this act shall be deposited
22 with the state treasurer to be credited by him to the sales tax account cre-
23 ated by this act.
24 (c) On or before the twentieth day of the month a return shall be filed
25 with the state tax commission in such form as the state tax commission may
27 (d) For the purpose of the sales tax, a return shall be filed by every
28 seller. For the purposes of the use tax, a return shall be filed by every
29 retailer engaged in business in this state and by every person purchasing tan-
30 gible personal property, the storage, use, or other consumption of which is
31 subject to the use tax, who has not paid the use tax due to a retailer
32 required to collect the tax. Returns shall be signed by the person required to
33 file the return or by his duly authorized agent.
34 (e) For the purposes of the sales tax, the return shall show the total
35 sales at retail subject to tax under this act during the reporting period. For
36 the purposes of the use tax, in case of a return filed by a retailer, the
37 return shall show the total sales price of the property sold by him, the stor-
38 age, use, or consumption of which property became subject to the use tax dur-
39 ing the reporting period; in the case of a return filed by a purchaser, the
40 return shall show the total sales price of the property purchased by him, the
41 storage, use, or consumption of which became subject to the use tax during the
42 reporting period.
43 (f) The return shall show the amount of the taxes for the period covered
44 by the return and such other information as the state tax commission deems
45 necessary for the proper administration of this act.
46 (g) The person required to file the return shall mail or deliver the
47 return together with a remittance of any tax due to the state tax commission
48 for the reporting period.
49 (h) The state tax commission, if it deems it necessary in order to insure
50 payment to or facilitate the collection by the state of taxes, may require
51 returns for periods other than monthly periods.
52 (i) For the purposes of the sales tax, gross amounts from rentals or
53 leases of tangible personal property which may be subject to tax under this
1 act shall be reported and the tax paid in accordance with such rules as the
2 state tax commission may prescribe.
3 (j) The state tax commission for good cause may extend, for not to exceed
4 one (1) month, the time for making any return or paying any amount required to
5 be paid under this act.
6 (k) Any person to whom an extension is granted and who pays the tax
7 within the period for which the extension is granted shall pay, in addition to
8 the tax, interest at the rate provided in section 63-3045, Idaho Code, from
9 the date on which the tax would have been due without the extension until the
10 day of payment.
11 (l) Upon the transfer of ownership of a motor vehicle subject to sales or
12 use tax, a certificate of title will be issued to the new owner only upon pre-
13 sentation of evidence of payment of sales or use tax on the transaction.
14 (m) The owner of a truck, trailer or motor vehicle or
15 trailer required to be licensed registered by
16 the laws of this state shall, upon demand, furnish to the officer issuing such
17 license registration, satisfactory evidence that any
18 sales or use tax to which such truck, trailer or motor vehicle
19 or trailer is subject has been paid to this state before any such
20 license registration shall be issued.
21 (n) Retail sales of tangible personal property through a vending machine
22 which are taxable upon the purchase price paid by the owner or operator of the
23 vending machine pursuant to subsection (e) of section 63-3613, Idaho Code,
24 shall be reported upon the sales tax return of the owner or operator of the
25 vending machine in the manner by which the tax commission may by rule pre-
27 SECTION 15. That Section 63-3638, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
30 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
31 be distributed by the tax commission as follows:
32 (a) An amount of money shall be distributed to the state refund account
33 sufficient to pay current refund claims. All refunds authorized under this
34 chapter by the commission shall be paid through the state refund account, and
35 those moneys are continuously appropriated.
36 (b) Five hundred thousand dollars ($500,000) per year is continuously
37 appropriated and shall be distributed to the permanent building account, pro-
38 vided by section 57-1108, Idaho Code.
39 (c) Four million eight hundred thousand dollars ($4,800,000) per year is
40 continuously appropriated and shall be distributed to the water pollution con-
41 trol account established by section 39-3605, Idaho Code.
42 (d) (1) An amount equal to the sum required to be certified by the chair-
43 man of the Idaho housing and finance association to the state tax commis-
44 sion pursuant to section 67-6211, Idaho Code, in each year is continuously
45 appropriated and shall be paid to any capital reserve fund, established by
46 the Idaho housing and finance association pursuant to section 67-6211,
47 Idaho Code. Such amounts, if any, as may be appropriated hereunder to the
48 capital reserve fund of the Idaho housing and finance association shall be
49 repaid for distribution under the provisions of this section, subject to
50 the provisions of section 67-6215, Idaho Code, by the Idaho housing and
51 finance association, as soon as possible, from any moneys available there-
52 for and in excess of the amounts which the association determines will
53 keep it self-supporting.
1 (2) An amount equal to the sum required by the provisions of section
2 63-709, Idaho Code, is continuously appropriated and shall be paid as pro-
3 vided by section 63-709, Idaho Code.
4 (e) Six percent (6%) is hereby appropriated and shall be paid to the
5 county treasurer of each county in amounts to be determined as follows:
6 (1) Each taxing district other than school districts shall be entitled to
7 a base share of sales tax moneys equal to the amount distributed to that
8 district for the fourth calendar quarter of 1979. The computation shall
9 not include any distributions made to the credit of either the former
10 county school levy or the state water pollution control levy. The percent-
11 age so determined for each taxing district shall be applied each quarter
12 to the above percentage of sales tax. The resulting sums shall be paid to
13 the county treasurer of each county for distribution to each taxing dis-
14 trict, except school districts, which received sales tax moneys in 1979.
15 Whenever a taxing district is dissolved, the dissolved district's share of
16 sales moneys shall be credited continuously to the county current expense
18 (2) Whenever the amount of nonschool district sales tax moneys distrib-
19 uted exceeds in any quarter the total amount of moneys distributed to non-
20 school districts for the base quarter, which is the fourth calendar quar-
21 ter of 1979, by ten percent (10%), or more, the excess of the base quarter
22 shall be paid to the county treasurer of each county for distribution to
23 each taxing district in the county, except school districts, in the fol-
24 lowing manner.
25 The state tax commission shall compute the percentage that the aver-
26 age amount of taxes collected from assessments for the years 1965, 1966
27 and 1967 on the personal property described as business inventory in sub-
28 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears
29 to the average total amount of taxes collected from assessments for said
30 years on the personal property described as business inventory in subsec-
31 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the
32 state. The percentage so determined for each county shall be applied to
33 the sales tax distributed under this subsection and the resulting sum
34 shall be paid to the county treasurer of each county for distribution to
35 each taxing district, except school districts, in the county as follows:
36 (i) Each year the county commissioners in each county shall take
37 the tax charge, applicable to the current property roll equalized by
38 county commissioners sitting as a board of equalization, of each tax-
39 ing district within the county, except school districts, and divide
40 it by the total current tax charges applicable to the current prop-
41 erty roll of all taxing districts, except school districts, within
42 said county and the resulting percentages shall be applied to the
43 county's proportionate share of said sales tax account and the
44 resulting amount shall be distributed to each taxing district in the
45 county periodically but not less frequently than quarterly by the
46 county auditor and applied by such taxing districts in the same man-
47 ner and in the same proportions as revenues from property taxation.
48 (ii) The moneys set aside and appropriated to the county treasurer
49 out of the sales tax account above may be considered by the counties
50 and other taxing districts and budgeted against at the same time, in
51 the same manner and in the same year as revenues from taxation on all
52 classes of personal property which these moneys replace.
53 (3) All moneys distributed pursuant to subsection (e) shall be subject to
54 the redistribution provisions of section 40-801, Idaho Code, where appli-
1 (f) One dollar ($1.00) on each application for certificate of title
2 to a motor vehicle, or initial application for registration of a
3 motor vehicle, snowmobile, all-terrain vehicle or other vehicle proc-
4 essed by the county assessor or the Idaho transportation department excepting
5 those applications in which any sales or use taxes due have been previously
6 collected by a retailer, shall be a fee for the services of the assessor of
7 the county or the Idaho transportation department in collecting such taxes,
8 and shall be paid into the current expense fund of the county or state highway
9 account established in section 40-702, Idaho Code.
10 (g) Seven and three-quarters percent (7.75%) is continuously appropriated
11 and shall be distributed to the revenue sharing account which is created in
12 the state operating fund, and the moneys in the revenue sharing account will
13 be paid by the tax commission as follows:
14 (1) One-half (1/2) shall be paid to the various cities as follows:
15 (i) Fifty percent (50%) of such amount shall be paid to the various
16 cities, and each city shall be entitled to an amount in the propor-
17 tion that the population of that city bears to the population of all
18 cities within the state; and
19 (ii) Fifty percent (50%) of such amount shall be paid to the various
20 cities, and each city shall be entitled to an amount in the propor-
21 tion that the preceding year's market value for assessment purposes
22 for that city bears to the preceding year's market value for assess-
23 ment purposes for all cities within the state.
24 (2) One-half (1/2) shall be paid to the state's general account or to the
25 various counties as follows:
26 (i) One million three hundred twenty thousand dollars ($1,320,000)
27 shall be distributed one forty-fourth (1/44) to each of the various
28 counties; and
29 (ii) The balance of such amount shall be paid to the various coun-
30 ties, and each county shall be entitled to an amount in the propor-
31 tion that the population of that county bears to the population of
32 the state.
33 (h) Any moneys remaining over and above those necessary to meet and
34 reserve for payments under other subsections of this section shall be distrib-
35 uted to the general account.
STATEMENT OF PURPOSE
This bill makes technical corrections to the Idaho Sales
Tax Act. It adds a new section to define the term "motor
vehicle" as that term is used in the Sales Tax Act. Other
sections of the Act are amended as necessary to provide a
consistent definition through-out the Act.
The bill also amends:
Section 63-3613, Idaho Code, to strike an obsolete requirement
that the allowance for bad debts is limited to bad debts written
off for income tax purposes.
Section 63-36220, Idaho Code, to correct references within the
No fiscal effect.
Name: Dan John / Ted Spangler
Agency: State Tax Commission
STATEMENT OF PURPOSE/FISCAL NOTE H123