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H0124aa,aaS.........................................by REVENUE AND TAXATION
EVENT PROMOTER - SALES TAX - Adds to existing sales tax law to require that
operators and promoters of promoter sponsored events obtain evidence of
compliance with the Idaho Sales Tax Act from sellers participating in the
event; to provide penalties; and to clarify the definition of sale
pertaining to admission charges by certain organizations.
01/27 House intro - 1st rdg - to printing
01/29 Rpt prt - to Rev/Tax
02/18 Rpt out - to Gen Ord
02/19 Rpt out amen - to engros
02/22 Rpt engros - 1st rdg - to 2nd rdg as amen
02/23 2nd rdg - to 3rd rdg as amen
02/24 3rd rdg as amen - PASSED - 45-20-5
AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Callister,
Chase, Crow, Cuddy, Denney, Ellsworth, Field(13), Geddes, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kunz, Lake, Limbaugh, Loertscher, Marley, Meyer,
Mortensen, Pischner, Reynolds, Ringo, Robison, Sellman, Smith,
Smylie, Stevenson, Taylor(Taylor), Tilman, Trail, Watson, Zimmermann,
Mr Speaker
NAYS -- Alltus, Barrett, Campbell, Clark, Field(20), Gagner, Hadley,
Kendell, Mader, McKague, Montgomery, Moyle, Pomeroy, Ridinger,
Schaefer, Stoicheff, Stone, Tippets, Wheeler, Williams
Absent and excused -- Deal, Gould, Linford, Sali, Wood
Floor Sponsor - Kempton
Title apvd - to Senate
02/25 Senate intro - 1st rdg as amen - to Loc Gov
03/09 Rpt out - to 14th Ord
Rpt out amen - to 1st rdg as amen
03/10 1st rdg - to 2nd rdg as amen
03/11 2nd rdg - to 3rd rdg as amen
03/12 3rd rdg as amen - PASSED - 25-7-3
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron,
Darrington, Davis, Deide, Frasure, Geddes, Ingram, Ipsen, Lee,
McLaughlin, Noh, Richardson, Risch, Sandy, Schroeder, Sorensen,
Stegner, Stennett, Thorne, Twiggs, Wheeler
NAYS--Crow, Danielson, Hawkins, Keough, King, Riggs, Whitworth
Absent and excused--Branch, Dunklin, Parry
Floor Sponsor - Bunderson
Title apvd - to House
03/15 House concurred in Senate amens - to engros
03/16 Rpt engros - 1st rdg - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
Rules susp - PASSED - 52-17-1
AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Callister,
Chase, Crow, Cuddy, Deal, Denney, Field(13), Field(20), Geddes,
Gould, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Linford,
Mader, Marley, Meyer(Duncan), Mortensen, Pischner, Pomeroy, Reynolds,
Robison, Sellman, Smith, Smylie, Stevenson, Stone, Taylor, Tilman,
Tippets, Watson, Wheeler, Williams, Wood, Zimmermann, Mr Speaker
NAYS -- Alltus, Barrett, Campbell, Clark, Ellsworth, Gagner, Hadley,
Judd, Loertscher, McKague, Moyle, Ridinger, Ringo, Sali, Schaefer,
Stoicheff, Trail
Absent and excused -- Montgomery
Floor Sponsor - Kempton
Title apvd - to enrol
03/18 Rpt enrol - Sp signed - Pres signed
03/19 To Governor
03/23 Governor signed
Session Law Chapter 204
Effective: 03/23/99 - Section 2
07/01/99 - Section 1
H0124|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 124, As Amended, As Amended in the Senate BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES TAXES; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE 3 ADDITION OF A NEW SECTION 63-3620C, IDAHO CODE, TO REQUIRE THAT OPERATORS 4 AND PROMOTERS OF PROMOTER SPONSORED EVENTS OBTAIN EVIDENCE OF COMPLIANCE 5 WITH THE IDAHO SALES TAX ACT FROM SELLERS PARTICIPATING IN THE EVENT, TO 6 AUTHORIZE PROMOTERS TO ISSUE TEMPORARY SELLERS' PERMITS AND TO PROVIDE 7 COMPENSATION, TO PROVIDE PENALTIES AND TO PROVIDE A DEFINITION; AMENDING 8 SECTION 63-3612, IDAHO CODE, TO CLARIFY THE DEFINITION OF SALE PERTAINING 9 TO ADMISSION CHARGES BY CERTAIN ORGANIZATIONS; DECLARING AN EMERGENCY AND 10 PROVIDING EFFECTIVE DATES. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is 13 hereby amended by the addition thereto of a NEW SECTION , to be 14 known and designated as Section 63-3620C, Idaho Code, and to read as follows: 15 63-3620C. PROMOTER SPONSORED EVENTS. (1) The operator or promoter con- 16 tracting with persons for participation in a promoter sponsored event, as a 17 prerequisite to renting or leasing space to any person for conducting business 18 as a retailer on any premises owned or controlled by that operator or pro- 19 moter, shall obtain: 20 (a) Written evidence that the retailer holds a valid seller's permit 21 issued pursuant to this chapter or will apply to the state tax commission 22 for a regular or temporary seller's permit; or 23 (b) A written statement from the retailer that the retailer is not offer- 24 ing for sale any item that is taxable under this chapter or is otherwise 25 not required to hold a valid seller's permit. 26 (2) Such written evidence or statements shall be in such form and contain 27 such information as the state tax commission shall require, and shall include 28 the retailer's taxpayer identification number. The operator or promoter shall 29 submit the documents to the state tax commission within ten (10) days follow- 30 ing the beginning of the event. 31 (3) (a) The state tax commission may appoint a sponsor or promoter as its 32 agent for issuing temporary seller's permits to participants in the event 33 and for accounting for such permits. 34 (b) A sponsor or promoter appointed to issue temporary permits under this 35 subsection shall be entitled to a credit or refund of income or franchise 36 taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one 37 dollar ($1.00) for each such temporary permit issued by the sponsor or 38 promoter during the taxable year. 39 (4) Any operator or promoter of a promoter sponsored event who fails to 40 comply with this section may be subject to a minimum penalty of fifty dollars 41 ($50.00) per event and twenty-five dollars ($25.00) for each seller over two 42 (2) sellers for whom such records required by subsection (1) of this section 43 are not obtained, but not to exceed one thousand dollars ($1,000) for each 2 1 such event. 2 (5) The penalties provided in subsection (4) of this section shall not 3 apply: 4 (a) Unless the state tax commission shall have previously given notice to 5 the operator or promoter or its officer, agent or employee, by certified 6 mail, of the requirements of this section and of a violation of this sec- 7 tion by the operator or promoter or its officer, agent or employee; or 8 (b) If the operator or promoter shows that such failure was due to rea- 9 sonable cause and not to willful neglect. 10 (6) The state tax commission shall give notice of any penalty provided in 11 this section and it shall assess such penalties in the manner provided for 12 deficiencies of tax. 13 (7) "Promoter sponsored event," as used in this section, means a swap 14 meet, flea market, gun show, fair or similar activity involving a series of 15 sales sufficient in number, scope and character to constitute a regular course 16 of business; or any event at which two (2) or more persons offer tangible per- 17 sonal property or services for sale or exchange and at which a fee is charged 18 for the privilege of offering the services or displaying the property for sale 19 or exchange; or at which a fee is charged to prospective buyers for admission 20 to the area where the property or services are offered or displayed for sale 21 or exchange. 22 SECTION 2. That Section 63-3612, Idaho Code, be, and the same is hereby 23 amended to read as follows: 24 63-3612. SALE. (1) The term "sale" means any transfer of title, exchange 25 or barter, conditional or otherwise, of tangible personal property for a con- 26 sideration and shall include any similar transfer of possession found by the 27 state tax commission to be in lieu of, or equivalent to, a transfer of title, 28 exchange or barter. 29 (2) "Sale" shall also include the following transactions when a consider- 30 ation is transferred, exchanged or bartered: 31 (a) Producing, fabricating, processing, printing, or imprinting of tangi- 32 ble personal property for consumers who furnish, either directly or indi- 33 rectly, the tangible personal property used in the producing, fabricating, 34 processing, printing, or imprinting. 35 (b) Furnishing, preparing, or serving food, meals, or drinks and 36 nondepreciable goods and services directly consumed by customers included 37 in the charge thereof. 38 (c) A transfer of possession of property where the seller retains the 39 title as security for the payment of the sales price. 40 (d) A transfer of the title or possession of tangible personal property 41 which has been produced, fabricated, or printed to the special order of 42 the customer, or of any publication. 43 (e) Admission to a place or for an event in Idaho , provided that an 44 organization conducting an exempt function as defined in section 527 or 45 exempted by section 501(c)(3) of the Internal Revenue Code, as incorpo- 46 rated in section 63-3004, Idaho Code, and collecting any charges for 47 attendance at the aforementioned event, shall not have those admission 48 charges be defined as a sale if the event: 49 (i) Is not predominately recreational or commercial; and 50 (ii) Any included entertainment value is minimal when compared to 51 the charge for attendance; and 52 (iii) Such entity has paid sales and use tax on taxable property or 53 services used during the event . 3 1 (f) The use of or the privilege of using tangible personal property or 2 facilities for recreation. 3 (g) Providing hotel, motel, campground, or trailer court accommodations, 4 nondepreciable goods directly consumed by customers and included services, 5 except where residence is maintained continuously under the terms of a 6 lease or similar agreement for a period in excess of thirty (30) days. 7 (h) The lease or rental of tangible personal property. 8 (i) The intrastate transportation for hire by air of freight or passen- 9 gers, except (1) as part of a regularly scheduled flight by a certified 10 air carrier, under authority of the United States, or (2) when providing 11 air ambulance services. 12 (3) As used in subsections (2)(b) and (2)(g) of this section, goods 13 "directly consumed by customers" shall not be interpreted to mean any linens, 14 bedding, cloth napkins or similar nondisposable property. 15 SECTION 3. An emergency existing therefor, which emergency is hereby 16 declared to exist, Section 2 of this act shall be in full force and effect on 17 and after its passage and approval; and Section 1 of this act shall be in full 18 force and effect on and after July 1, 1999.
AH0124|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Kempton Seconded by Gould IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 124 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, delete lines 14, 15 and 16 and insert: 3 "prerequisite to renting or leasing space to any person for conducting busi- 4 ness as a retailer on any premises owned or controlled by that operator or 5 promoter, shall obtain:"; and in line 26, delete "of" and insert: "following". Moved by Risch Seconded by Bunderson IN THE SENATE SENATE AMENDMENT TO H.B. NO. 124, As Amended 6 AMENDMENT TO THE BILL 7 On page 2 of the engrossed bill, following line 18, insert: 8 "SECTION 2. That Section 63-3612, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 63-3612. SALE. (1) The term "sale" means any transfer of title, exchange 11 or barter, conditional or otherwise, of tangible personal property for a con- 12 sideration and shall include any similar transfer of possession found by the 13 state tax commission to be in lieu of, or equivalent to, a transfer of title, 14 exchange or barter. 15 (2) "Sale" shall also include the following transactions when a consider- 16 ation is transferred, exchanged or bartered: 17 (a) Producing, fabricating, processing, printing, or imprinting of tangi- 18 ble personal property for consumers who furnish, either directly or indi- 19 rectly, the tangible personal property used in the producing, fabricating, 20 processing, printing, or imprinting. 21 (b) Furnishing, preparing, or serving food, meals, or drinks and 22 nondepreciable goods and services directly consumed by customers included 23 in the charge thereof. 24 (c) A transfer of possession of property where the seller retains the 25 title as security for the payment of the sales price. 26 (d) A transfer of the title or possession of tangible personal property 27 which has been produced, fabricated, or printed to the special order of 28 the customer, or of any publication. 29 (e) Admission to a place or for an event in Idaho , provided that an 30 organization conducting an exempt function as defined in section 527 or 31 exempted by section 501(c)(3) of the Internal Revenue Code, as incorpo- 32 rated in section 63-3004, Idaho Code, and collecting any charges for 33 attendance at the aforementioned event, shall not have those admission 34 charges be defined as a sale if the event: ]]] 2 1 (i) Is not predominately recreational or commercial; and 2 (ii) Any included entertainment value is minimal when compared to 3 the charge for attendance; and 4 (iii) Such entity has paid sales and use tax on taxable property or 5 services used during the event . 6 (f) The use of or the privilege of using tangible personal property or 7 facilities for recreation. 8 (g) Providing hotel, motel, campground, or trailer court accommodations, 9 nondepreciable goods directly consumed by customers and included services, 10 except where residence is maintained continuously under the terms of a 11 lease or similar agreement for a period in excess of thirty (30) days. 12 (h) The lease or rental of tangible personal property. 13 (i) The intrastate transportation for hire by air of freight or passen- 14 gers, except (1) as part of a regularly scheduled flight by a certified 15 air carrier, under authority of the United States, or (2) when providing 16 air ambulance services. 17 (3) As used in subsections (2)(b) and (2)(g) of this section, goods 18 "directly consumed by customers" shall not be interpreted to mean any linens, 19 bedding, cloth napkins or similar nondisposable property. 20 SECTION 3. An emergency existing therefor, which emergency is hereby 21 declared to exist, Section 2 of this act shall be in full force and effect on 22 and after its passage and approval; and Section 1 of this act shall be in full 23 force and effect on and after July 1, 1999.". 24 CORRECTION TO TITLE 25 On page 1, in line 7, following "DEFINITION" insert: "; AMENDING SECTION 26 63-3612, IDAHO CODE, TO CLARIFY THE DEFINITION OF SALE PERTAINING TO ADMISSION 27 CHARGES BY CERTAIN ORGANIZATIONS; DECLARING AN EMERGENCY AND PROVIDING EFFEC- 28 TIVE DATES".
STATEMENT OF PURPOSE
R.S.08445
Requires operators and promoters of "promoter sponsored events" to obtain
evidence of compliance with the Idaho Sales Tax Act from sellers participating
in the event. The required evidence is:
written evidence that the seller holds a sellers permit under the Idaho
Sale Tax Act or will apply to the state tax commission for a regular or
temporary sellers permit, or
written statement that the seller does not make sales subject to tax.
The bill also authorizes the State Tax Commission to allow promoters to
issue and account for temporary seller's permits.
Promoters issuing such permits would be compensated on their Idaho Income tax
Returns by a refundable credit equal to one dollar for each temporary permit
issued.
"Promoter sponsored events" are activities involving a series of sales
sufficient in number, scope and character to constitute a regular course of
business, or any event at which two or more persons offer tangible personal
property or services for sale or exchange and at which a fee is charged for the
privilege of offering the services or displaying the property for sale or
exchange or at which a fee is charged to prospective buyers for admission to the
area where the property or services are offered or displayed for sale or
exchange. Examples include: swap meet, flea market, gun show, fair or similar
activities.
The bill provides a minimum penalty of $50 plus $25 dollars for each
participant over two for each instance for which an operator or promoter fails
to obtain the documentation. The maximum penalty is $1,000. The penalty does not
apply if the failure is due to reasonable cause and not to willful neglect.
FISCAL NOTE
This bill does not increase the amount of tax that is due. It will
facilitate the Tax Commission's ability to collect taxes under the Idaho Sales
Tax Act. Positive effect on sales tax revenues for FY 200D is estimated at
$10,000. This amount will increase as the program is implemented. FY 2000 start
up costs are estimated at $3,000. The refund or credit provision will not exceed
a loss of $1,000 in general fund income tax revenue.
Contact
Name: Dan John / Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE H 124