2000 Legislation
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HOUSE BILL NO. 490 – Tax, fuel, agreemt, other jurisdctn

HOUSE BILL NO. 490

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Daily Data Tracking History



H0490.........................................by TRANSPORTATION AND DEFENSE
TAX - MOTOR FUEL - Amends existing law to make technical corrections to the
motor fuel tax law; and to clarify the State Tax Commission has authority
to coordinate tax agreements with other jurisdictions which participate in
the International Fuels Tax Agreement.
                                                                        
02/03    House intro - 1st rdg - to printing
02/04    Rpt prt - to Transp
02/09    Rpt out - rec d/p - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/11    3rd rdg - PASSED - 61-0-9
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Boe, Bruneel,
      Callister, Chase, Cheirrett, Clark, Cuddy, Denney, Ellsworth,
      Field(13), Field(20), Gagner, Gould, Hadley, Hansen(23), Henbest,
      Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake,
      Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen,
      Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison,
      Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson,
      Stoicheff, Stone, Taylor, Tilman, Trail(Miller), Wheeler, Wood,
      Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Black, Campbell, Crow, Deal, Geddes, Hammond,
      Hansen(29), Linford, Moss
    Floor Sponsor - Smith
    Title apvd - to Senate
02/14    Senate intro - 1st rdg - to Transp
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
03/27    3rd rdg - PASSED - 35-0-0
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
      Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      NAYS--None
      Absent and excused--None
    Floor Sponsor - Boatright
    Title apvd - to House
03/28    To enrol
03/29    Rpt enrol - Sp signed
03/30    Pres signed
03/31    To Governor
04/03    Governor signed
         Session Law Chapter 155
         Effective: 07/01/00

Bill Text


 H0490
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 490
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR FUEL TAXES; AMENDING SECTION 63-2406, IDAHO CODE, TO CLARIFY
  3        THAT DISTRIBUTORS ARE REQUIRED TO PAY AND REMIT  TAX  TO  THE  COMMISSION;
  4        AMENDING  SECTION  63-2416, IDAHO CODE, TO CLARIFY THE EXEMPTION FROM SPE-
  5        CIAL FUELS TAX FOR GOVERNMENT ENTITIES, TO DELETE OUTDATED LANGUAGE AND TO
  6        MAKE TECHNICAL CORRECTIONS;  AMENDING  SECTION  63-2418,  IDAHO  CODE,  TO
  7        DELETE  REFERENCE  TO  A  REPEALED LAW AND TO MAKE A TECHNICAL CORRECTION;
  8        AMENDING SECTION 63-2442A, IDAHO CODE, TO CLARIFY  THE  AUTHORITY  OF  THE
  9        STATE TAX COMMISSION TO COORDINATE TAX AGREEMENTS WITH JURISDICTIONS OTHER
 10        THAN DOMESTIC STATES; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That  Section 63-2406, Idaho Code, be, and the same is hereby
 13    amended to read as follows:
                                                                        
 14        63-2406.  DISTRIBUTOR REPORTS. (1) Each distributor shall, not later  than
 15    the  last day of each calendar month or for such other reporting period as the
 16    commission may authorize, render to the commission an accurate report  of  all
 17    motor  fuel  received  by  him  in  this  state during the preceding reporting
 18    period. The report shall be made in the manner and on forms  required  by  the
 19    commission.
 20        (2)  The distributor's report shall include:
 21        (a)  An  itemized  statement  of the total number of gallons of motor fuel
 22        received during the preceding calendar month; and
 23        (b)  Other information as the commission may require for the proper admin-
 24        istration of this chapter.
 25        (3)  The report shall be accompanied by a remittance of the tax  shown  to
 26    be due on the report together with any applicable interest and penalty, unless
 27    the  amounts  due are paid by electronic funds transfer in the manner provided
 28    by section 67-2026, Idaho Code.
 29        (4)  Any distributor required to collect pay the tax imposed by this chap-
 30    ter who fails to collect pay such tax or any distributor required to remit tax
 31    pursuant to this section who fails to make such remittance, shall be liable to
 32    the commission for the amount of tax not collected or remitted plus any appli-
 33    cable penalty or interest. The commission may collect such amounts in the man-
 34    ner provided in section 63-2434, Idaho Code.
                                                                        
 35        SECTION 2.  That Section 63-2416, Idaho Code, be, and the same  is  hereby
 36    amended to read as follows:
                                                                        
 37        63-2416.  TAX IMPOSED. (1) For the privilege of using the public highways,
 38    an excise tax is hereby imposed on all special fuels used for the operation or
 39    propulsion  of  any motor vehicle which is licensed or required to be licensed
 40    under the laws of this state or which is required to  be  licensed  under  the
 41    laws  of  another  state  and  is operated on a highway in this state. The tax
                                                                        
                                           2
                                                                        
  1    shall apply at the same rate as the tax  imposed  by  section  63-2405,  Idaho
  2    Code.  The  tax  shall  attach  and be collected at the time special fuels are
  3    received, in the same manner as for  gasoline  under  section  63-2403,  Idaho
  4    Code, and is to be paid by the licensed distributor.
  5        (2)  The  tax  imposed in subsection (1) of this section does not apply to
  6    special fuels:
  7        (a)  Which have been dyed at a refinery or terminal; or
  8        (b)  Exported, other than in the supply tanks of motor vehicles, but  only
  9        if:
 10             (i)  any  tax  due  in  the jurisdiction to which the special fuel is
 11             destined is paid; or
 12             (ii) the purchaser is a licensed distributor in the  jurisdiction  to
 13             which the special fuel is destined; or
 14        (c)  Dispensed  into  a motor vehicle which uses gaseous special fuels and
 15        which displays a valid gaseous special fuels permit under section 63-2424,
 16        Idaho Code; or
 17        (d)  Which are gaseous special fuels, as defined in section 63-2401, Idaho
 18        Code, unless any part thereof is delivered into the fuel  supply  tank  or
 19        tanks of a motor vehicle.
 20        (3)  If  special  fuels on which tax is not collected under subsection (1)
 21    of this section or fuel on which a claim for refund  has  been  allowed  under
 22    section 63-2423, Idaho Code, is used or consumed:
 23        (a)  In  the  operation  or  propulsion  of  a motor vehicle on a highway,
 24        except as permitted by subsection (1)(b) of section 63-2423,  Idaho  Code;
 25        or
 26        (b)  In a recreational vehicle,; or
 27        (c)  In  noncommercial motor boats or in motor boats operated by a govern-
 28        mental entity,;
 29    the tax shall be payable at the rate established  in  section  63-2405,  Idaho
 30    Code,  to  the  commission by the user or consumer of the fuels and shall be a
 31    debt owing to the state until it is paid.
 32        (4)  A floor stocks tax is hereby  imposed  upon  every  licensed  special
 33    fuels  dealer  on all undyed diesel fuel at the rate imposed in subsection (1)
 34    of this section on each gallon of fuel in their possession or under their con-
 35    trol on January 1, 1996. The tax shall be reported with the return  due  under
 36    this  chapter  for  the  month of January, 1996, in the manner required by the
 37    state tax commission. The tax due under this subsection shall be paid in  full
 38    to the state tax commission on or before July 31, 1996.
                                                                        
 39        SECTION  3.  That  Section 63-2418, Idaho Code, be, and the same is hereby
 40    amended to read as follows:
                                                                        
 41        63-2418.  DISTRIBUTION OF TAX REVENUES. The revenues received from the tax
 42    imposed by sections 63-2416, and  63-2417,  Idaho  Code,  and  any  penalties,
 43    interest,  or deficiency additions, or from the fees imposed by the commission
 44    under the provisions of section 63-2438, Idaho Code, shall be  distributed  as
 45    follows:
 46        (1)  An  amount  of money equal to the actual cost of collecting, adminis-
 47    tering and enforcing the special fuels tax provisions by  the  commission,  as
 48    determined  by  it shall be retained by the commission. The amount retained by
 49    the commission shall not exceed the amount authorized to be expended by appro-
 50    priation by the legislature. Any unencumbered balance in excess of the  actual
 51    cost of collecting, administering and enforcing the special fuels tax require-
 52    ments by the commission at the end of each fiscal year shall be distributed to
 53    the highway distribution account.
                                                                        
                                           3
                                                                        
  1        (2)  An  amount  of money shall be distributed to the state refund account
  2    sufficient to pay  current  refund  claims.  All  refunds  authorized  by  the
  3    commision  commission  to  be  paid  under this chapter shall be paid from the
  4    state refund account, those moneys being hereby continuously appropriated.
  5        (3)  The balance remaining with  the  commission  after  distributing  the
  6    amounts specified in subsections (1) and (2) of this section shall be distrib-
  7    uted to the highway distribution account, established in section 40-701, Idaho
  8    Code.
                                                                        
  9        SECTION  4.  That Section 63-2442A, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        63-2442A.  INTERNATIONAL FUEL TAX AGREEMENT AND OTHER  AGREEMENTS  BETWEEN
 12    STATES JURISDICTIONS. (1) The commission may enter into cooperative agreements
 13    with  other  states  jurisdictions for exchange of information and auditing of
 14    distributors, dealers and users of motor fuels. The commission shall  partici-
 15    pate  in  the  international  fuel tax agreement as required by the intermodal
 16    surface transportation efficiency act of 1991, Public Law 102-240,  105  Stat.
 17    1914, including subsequent amendments to that agreement.
 18        (2)  Any  person  operating  a  motor  vehicle  over  twenty-six  thousand
 19    (26,000)  pounds maximum gross weight which is (a) based in this state and (b)
 20    operated in this state and in any other jurisdiction which is a member of  the
 21    international  fuels tax agreement shall report and pay all fuel use taxes due
 22    to any IFTA member jurisdiction, together with any other charges  due  to  any
 23    such  jurisdiction  which  are  reportable  on  the IFTA report, in the manner
 24    required by IFTA. If the provisions set forth in the  international  fuel  tax
 25    agreement  are  in  conflict with any provision of this chapter, the agreement
 26    provisions shall prevail. An agreement, arrangement, declaration or  amendment
 27    thereto  is not effective until stated, in writing, and filed with the commis-
 28    sion.
 29        (3)  An agreement may provide for determining the base state  jurisdiction
 30    for  users, users records requirements, audit procedures, exchange of informa-
 31    tion, persons eligible for tax licensing, defining qualified  motor  vehicles,
 32    determining  if  bonding  is  required,  specifying reporting requirements and
 33    periods including defining uniform penalty and interest rates for late report-
 34    ing, determining methods for collecting and forwarding of motor  fuels  taxes,
 35    penalties  or  interest  to another jurisdiction, and other provisions as will
 36    facilitate the administration of the agreement.
 37        (4)  The commission may, as required by the terms of an agreement, forward
 38    to officers of another state jurisdiction any information in the  commission's
 39    possession  relative  to the manufacture, receipts, sale, use, transportation,
 40    or shipment of motor fuels by any person. The commission may disclose to offi-
 41    cers of another state jurisdiction, the location of officers, motor  vehicles,
 42    and other real and personal property of users of motor fuels.
 43        (5)  An  agreement  may  provide  for each state jurisdiction to audit the
 44    records of persons based in the state jurisdiction, to determine if the  motor
 45    fuels   taxes due each state jurisdiction are properly reported and paid. Each
 46    state jurisdiction shall forward the findings of the audits performed on  per-
 47    sons based in the state jurisdiction, to each  state jurisdiction in which the
 48    person has taxable use of motor fuels. For persons not based in this state and
 49    who  have  taxable  use of motor fuels in this state Idaho, the commission may
 50    serve the audit findings received from another state jurisdiction, in the form
 51    of an assessment, on the person as though an audit was conducted by  the  com-
 52    mission.
 53        (6)  The  commission may enter into additional cooperative agreements with
                                                                        
                                           4
                                                                        
  1    other states jurisdictions for mutual enforcement of  taxes  on  gasoline  and
  2    special fuels not subject to collection pursuant to the international fuel tax
  3    agreement.  Such  agreements may provide for collection and enforcement of the
  4    motor fuels taxes of all signatory states jurisdictions pursuant to  the  law,
  5    rules,  and regulations of the state jurisdiction in which a person liable for
  6    such taxes maintains his principal place of business. An agreement may provide
  7    for any or all of the following: determining the base  state  jurisdiction  of
  8    persons  liable for taxes, records requirements, audit procedures, exchange of
  9    information,  persons  eligible  for  tax licensing, determining if bonding is
 10    required, specifying reporting requirements  and  periods  including  defining
 11    uniform penalty and interest rates for late reporting, determining methods for
 12    collecting and forwarding of motor fuels taxes and penalties to another juris-
 13    diction,  and  other  provisions  as will facilitate the administration of the
 14    agreement.
 15        (7)  Any agreement entered into pursuant to this section does not preclude
 16    the commission from auditing the records of any person covered by  the  provi-
 17    sions of this chapter.
 18        (8)  The  legal remedies for any person served with an order or assessment
 19    under this section are as prescribed in this chapter.
 20        (9)  If the commission enters into any agreement under  the  authority  of
 21    this  section,  and  the provisions set forth in the agreement are in conflict
 22    with any rules promulgated by the commission, the  agreement  provisions  pre-
 23    vail.
                                                                        
 24        SECTION  5.  This  act shall be in full force and effect on and after July
 25    1, 2000.

Statement of Purpose / Fiscal Impact


                           STATEMENT OF PURPOSE

                            RS09346

This bill proposes several technical corrections to motor fuel tax
laws.  It deletes surplus language and corrects a cross reference;
clarifies the exemption from special fuels tax for governmental
entities; and clarifies the authority of the State Tax Commission
to coordinate tax agreements with Canadian provinces that
participate in the International Fuels Tax Agreement.  













                                 FISCAL NOTE


No fiscal effect.  






Contact
Name:     Dan John / Ted Spangler
Agency:   State Tax Commission 
Phone:    334-7530

STATEMENT OF PURPOSE/FISCAL NOTE                           H 490