2000 Legislation
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HOUSE BILL NO. 690 – Sales tax, promoter-sponsored event


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Daily Data Tracking History

H0690...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to provide that under no circumstances
shall an operator or a promoter be responsible for sales or use tax not
remitted by a retailer at a promoter-sponsored event.
02/24    House intro - 1st rdg - to printing
02/25    Rpt prt - to Rev/Tax
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/14    3rd rdg - PASSED - 65-0-5
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Boe, Bruneel,
      Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Denney,
      Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
      Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
      Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Mader,
      Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
      Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smylie, Stevenson, Stoicheff, Stone,
      Taylor, Tilman, Trail, Wheeler, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Black, Deal, Ellsworth, Smith, Wood
    Floor Sponsor - Chase
    Title apvd - to Senate
03/15    Senate intro - 1st rdg - to Loc Gov
03/23    Rpt out - rec d/p - to 2nd rdg
03/24    2nd rdg - to 3rd rdg
04/04    3rd rdg - PASSED - 32-0-3
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Ingram,
      Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Parry, Richardson,
      Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
      Walton, Wheeler, Whitworth, Williams
      Absent and excused--Davis, Hawkins, Noh
    Floor Sponsor - Keough
    Title apvd - to House
04/04    To enrol - rpt enrol - Sp signed
04/05    Pres signed - to Governor
04/14    Governor signed
         Session Law Chapter 349
         Effective: 04/14/00

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 690
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  6        ING AN EMERGENCY.
  7    Be It Enacted by the Legislature of the State of Idaho:
  8        SECTION 1.  That Section 63-3620C, Idaho Code, be, and the same is  hereby
  9    amended to read as follows:
 10        63-3620C.  PROMOTER  SPONSORED  EVENTS.  (1) The operator or promoter con-
 11    tracting with persons for participation in a promoter sponsored  event,  as  a
 12    prerequisite to renting or leasing space to any person for conducting business
 13    as  a  retailer  on  any premises owned or controlled by that operator or pro-
 14    moter, shall obtain:
 15        (a)  Written evidence that the retailer  holds  a  valid  seller's  permit
 16        issued  pursuant to this chapter or will apply to the state tax commission
 17        for a regular or temporary seller's permit; or
 18        (b)  A written statement from the retailer that the retailer is not offer-
 19        ing for sale any item that is taxable under this chapter or  is  otherwise
 20        not required to hold a valid seller's permit.
 21        (2)  Such written evidence or statements shall be in such form and contain
 22    such  information as the state tax commission shall require, and shall include
 23    the retailer's taxpayer identification number. The operator or promoter  shall
 24    submit  the documents to the state tax commission within ten (10) days follow-
 25    ing the beginning of the event.
 26        (3)  (a) The state tax commission may appoint a sponsor or promoter as its
 27        agent for issuing temporary seller's permits to participants in the  event
 28        and for accounting for such permits.
 29        (b)  A sponsor or promoter appointed to issue temporary permits under this
 30        subsection  shall be entitled to a credit or refund of income or franchise
 31        taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one
 32        dollar ($1.00) for each such temporary permit issued  by  the  sponsor  or
 33        promoter during the taxable year.
 34        (4)  Any  operator  or promoter of a promoter sponsored event who fails to
 35    comply with this section may be subject to a minimum penalty of fifty  dollars
 36    ($50.00)  per  event and twenty-five dollars ($25.00) for each seller over two
 37    (2) sellers for whom such records required by subsection (1) of  this  section
 38    are  not  obtained,  but  not to exceed one thousand dollars ($1,000) for each
 39    such event. Under no circumstances, shall an operator or a promoter be respon-
 40    sible for sales or use tax not remitted by a retailer at a promoter  sponsored
 41    event.
 42        (5)  The  penalties  provided  in subsection (4) of this section shall not
 43    apply:
  1        (a)  Unless the state tax commission shall have previously given notice to
  2        the operator or promoter or its officer, agent or employee,  by  certified
  3        mail,  of the requirements of this section and of a violation of this sec-
  4        tion by the operator or promoter or its officer, agent or employee; or
  5        (b)  If the operator or promoter shows that such failure was due  to  rea-
  6        sonable cause and not to willful neglect.
  7        (6)  The state tax commission shall give notice of any penalty provided in
  8    this  section  and  it  shall assess such penalties in the manner provided for
  9    deficiencies of tax.
 10        (7)  "Promoter sponsored event," as used in this  section,  means  a  swap
 11    meet,  flea  market,  gun show, fair or similar activity involving a series of
 12    sales sufficient in number, scope and character to constitute a regular course
 13    of business; or any event at which two (2) or more persons offer tangible per-
 14    sonal property or services for sale or exchange and at which a fee is  charged
 15    for the privilege of offering the services or displaying the property for sale
 16    or  exchange; or at which a fee is charged to prospective buyers for admission
 17    to the area where the property or services are offered or displayed  for  sale
 18    or exchange.
 19        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 20    declared to exist, this act shall be in full force and effect on and after its
 21    passage and approval.

Statement of Purpose / Fiscal Impact

                STATEMENT OF PURPOSE 
                      RS 10087 
          The purpose of this legislation is to ensure that Idaho Code is clear on the
     intent and implementation of the "Promoter Sponsored Sales Tax", which was
     instituted in HB 124 in the 1999 Session. 
          The intent was to have the event promoter establish that any vendor who
     offered taxable items for sale at the event had a current sales tax permit from the
     Idaho State Tax Commission or obtained a temporary permit from the   promoter
     of the event. 
          There in no responsibility or liability on the part of the promoter for
     payment of said sales tax. Once the promoter completes the paperwork, the
     responsibility shifts to the vendor, who is responsible and answerable to the tax
     commission. Conversely, it is the tax commission's responsibility to pursue tax
     collection from the vendor. 
                    FISCAL IMPACT 
     There is no fiscal impact as a result of this change in code. 
     Name: Senator Shawn Keough
     Phone: 332-1340 
                                                            STATEMENT OF PURPOSE/FISCAL NOTE                                H 690