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H0191...............................................by REVENUE AND TAXATION
CLEAN ROOM - Adds to existing law to provide an exemption from the sales
tax for any sale at retail, storage, use or other consumption of tangible
personal property which is exclusively used in, to maintain the environment
of, or is or becomes a component part of, a clean room
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to Rev/Tax
02/12 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 64-2-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kunz, Lake, Limbaugh, Loertscher, Mader, Marley,
McKague, Meyer, Mortensen, Moyle, Pischner, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith, Stevenson,
Stoicheff, Stone, Taylor(Taylor), Tilman, Tippets, Trail, Watson,
Wheeler, Williams, Wood, Zimmermann, Mr Speaker
NAYS -- Geddes, Kendell
Absent and excused -- Gould, Linford, Montgomery,
Dist. 15, Seat A, Vacant
Floor Sponsor - Crow
Title apvd - to Senate
02/18 Senate intro - 1st rdg - to Loc Gov
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 26-7-2
AYES--Andreason, Boatright, Bunderson, Cameron, Crow, Danielson,
Darrington, Davis, Deide, Dunklin, Frasure, Ingram, King, Lee,
McLaughlin, Noh, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler
NAYS--Branch, Burtenshaw, Geddes, Hawkins, Keough, Richardson,
Whitworth
Absent and excused--Ipsen, Parry
Floor Sponsor - Thorne
Title apvd - to House
03/10 To enrol
03/11 Rpt enrol - Sp signed
03/12 Pres signed
03/15 To Governor
03/19 Governor signed
Session Law Chapter 130
Effective: 01/01/2000
H0191|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 191 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 63-3622NN, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM 4 THE TAXES IMPOSED BY THIS CHAPTER FOR THE SALE AT RETAIL, STORAGE, USE OR 5 OTHER CONSUMPTION OF TANGIBLE PERSONAL PROPERTY WHICH IS EXCLUSIVELY USED 6 IN OR TO MAINTAIN THE ENVIRONMENT OF, OR IS OR BECOMES A COMPONENT PART 7 OF, A CLEAN ROOM, AND TO PROVIDE DEFINITIONS; AND PROVIDING AN EFFECTIVE 8 DATE. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is 11 hereby amended by the addition thereto of a NEW SECTION , to be 12 known and designated as Section 63-3622NN, Idaho Code, and to read as follows: 13 63-3622NN. CLEAN ROOMS. (1) There is exempted from the taxes imposed by 14 this chapter the sale at retail, storage, use or other consumption in this 15 state of tangible personal property which is exclusively used in or to main- 16 tain the environment of, or is or becomes a component part of, a clean room, 17 without regard to whether the property is actually contained within the clean 18 room or whether such tangible personal property ultimately becomes affixed to 19 or incorporated into real property. 20 (2) The following definitions apply to this section: 21 (a) "Clean room" means an environment in a defined space, within a larger 22 building, where humidity, temperature, particulate matter and contamina- 23 tion are precisely and regularly controlled; and 24 (i) Which is a "Class 10,000" clean room or better, and 25 (ii) In which the primary activities are activities which qualify 26 for the production exemption in section 63-3622D, Idaho Code, result- 27 ing in the manufacture of products which are either semiconductors, 28 products manufactured using semiconductor manufacturing processes, or 29 equipment used to manufacture semiconductors. 30 (b) "Class 10,000 clean room" means a specified area in which the concen- 31 tration of airborne particulates of five-tenths (0.5) micrometers or 32 larger is regularly maintained at a level of cleanliness no greater than 33 ten thousand (10,000) particles per cubic foot of air. 34 (c) "Semiconductor" means a small piece of semiconductor material includ- 35 ing silicon: 36 (i) On which an integrated circuit is embedded, or 37 (ii) Which is altered in the manufacturing process by primarily 38 using semiconductor processes. 39 (d) "Integrated circuit" means a complex of multiple active electronic 40 components and their interconnections built upon a semiconductor sub- 41 strate. 42 (e) "Semiconductor manufacturing processes" means chemical vapor deposi- 43 tion, plasma vapor deposition, wet and dry etch, chemical mechanical 2 1 planarization or polishing and such other manufacturing processes gener- 2 ally recognized by the semiconductor industry as being standard processes 3 in the industry. 4 (f) Property is "exclusively used" for a purpose when its use for any 5 other purpose is insignificant or inconsequential. 6 SECTION 2. This act shall be in full force and effect on and after Janu- 7 ary 1, 2000.
STATEMENT OF PURPOSE
RS08898C1
This legislation clarifies the manufacturing sales tax exemption as
it relates to cleanrooms used in the semiconductor
manufacturing process. Cleaurooms are the "room within a room"
that semiconductor manufacturers must use to ensure that their
products are manufactured in a nearly particle-free environment.
Cleanrooms are already subject to the manufacturing sales tax
exemption. However, because the production exemption was written
before such semiconductor manufacturing processes existed, the
current language does not adequately address what parts of a
cleanroom qualify for the sales tax exemption.
This legislation has been prepared in conjunction with the State
Tax Commission to make the law more clear, thus clarifying the
audit process.
FISCAL NOTE
The estimated cost to the general fund for Fiscal Year 2000 is
$200,000.
CONTACT: Steve Ahrens
Idaho Association of Commerce & Industry
(208) 338-5623
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 191