2000 Legislation
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SENATE BILL NO. 1533 – Sales tax dist, Permanent Bldg Acct

SENATE BILL NO. 1533

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Daily Data Tracking History



S1533............................................................by FINANCE
SALE TAX - DISTRIBUTION - Amends existing law to provide legislative
intent; and to increase the distribution from the Sales Tax Account to the
Permanent Building Account to five million dollars.
                                                                        
02/29    Senate intro - 1st rdg - to printing
03/01    Rpt prt - to Fin
    Rpt out - rec d/p - to 2nd rdg
03/02    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins,
      Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Walton/Branch, Wheeler, Whitworth, Williams
      NAYS--None
      Absent and excused--Davis
    Floor Sponsor - Parry
    Title apvd - to House
03/09    House intro - 1st rdg - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 67-0-3
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, 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, Smith, Smylie, Stevenson, Stoicheff,
      Stone, Taylor, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Geddes, Tilman, Trail
    Floor Sponsor - Clark
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed
03/20    Sp signed
03/21    To Governor
03/22    Governor signed
         Session Law Chapter 49
         Effective: 07/01/00

Bill Text


 S1533
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1533
                                                                        
                                    BY FINANCE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES TAX ACCOUNT; PROVIDING LEGISLATIVE INTENT; AND  AMENDING
  3        SECTION  63-3638, IDAHO CODE, TO INCREASE ANNUAL DISTRIBUTIONS TO THE PER-
  4        MANENT BUILDING FUND AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  LEGISLATIVE INTENT. It is legislative intent that any  distri-
  7    bution of the sales and use tax moneys to the Permanent Building Fund shall be
  8    made  after distributions pursuant to Section 63-3638, Idaho Code, are made to
  9    local governments.
                                                                        
 10        SECTION 2.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 13    ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
 14    be distributed by the tax commission as follows:
 15        (a)  An  amount  of money shall be distributed to the state refund account
 16    sufficient to pay current refund claims. All  refunds  authorized  under  this
 17    chapter  by the commission shall be paid through the state refund account, and
 18    those moneys are continuously appropriated.
 19        (b)  Five hundred thousand million dollars ($5,000,000) per year  is  con-
 20    tinuously  appropriated  and  shall  be  distributed to the permanent building
 21    account fund, provided by section 57-1108, Idaho Code.
 22        (c)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 23    continuously appropriated and shall be distributed to the water pollution con-
 24    trol account established by section 39-3605, Idaho Code.
 25        (d)  (1) An amount equal to the sum required to be certified by the chair-
 26        man  of the Idaho housing and finance association to the state tax commis-
 27        sion pursuant to section 67-6211, Idaho Code, in each year is continuously
 28        appropriated and shall be paid to any capital reserve fund, established by
 29        the Idaho housing and finance association  pursuant  to  section  67-6211,
 30        Idaho  Code. Such amounts, if any, as may be appropriated hereunder to the
 31        capital reserve fund of the Idaho housing and finance association shall be
 32        repaid for distribution under the provisions of this section,  subject  to
 33        the  provisions  of  section 67-6215, Idaho Code, by the Idaho housing and
 34        finance association, as soon as possible, from any moneys available there-
 35        for and in excess of the amounts which  the  association  determines  will
 36        keep it self-supporting.
 37        (2)  An  amount  equal  to  the  sum required by the provisions of section
 38        63-709, Idaho Code, is continuously appropriated and shall be paid as pro-
 39        vided by section 63-709, Idaho Code.
 40        (3)  An amount required by the provisions of chapter 53, title  33,  Idaho
 41        Code.
 42        (e)  Six  percent  (6%)  is  hereby  appropriated and shall be paid to the
                                                                        
                                           2
                                                                        
  1    county treasurer of each county in amounts to be determined as follows:
  2        (1)  Each taxing district other than school districts shall be entitled to
  3        a base share of sales tax moneys equal to the amount distributed  to  that
  4        district  for  the  fourth calendar quarter of 1979. The computation shall
  5        not include any distributions made to the  credit  of  either  the  former
  6        county school levy or the state water pollution control levy. The percent-
  7        age  so  determined for each taxing district shall be applied each quarter
  8        to the above percentage of sales tax. The resulting sums shall be paid  to
  9        the  county  treasurer of each county for distribution to each taxing dis-
 10        trict, except school districts, which received sales tax moneys  in  1979.
 11        Whenever a taxing district is dissolved, the dissolved district's share of
 12        sales  moneys shall be credited continuously to the county current expense
 13        fund.
 14        (2)  Whenever the amount of nonschool district sales tax  moneys  distrib-
 15        uted exceeds in any quarter the total amount of moneys distributed to non-
 16        school  districts for the base quarter, which is the fourth calendar quar-
 17        ter of 1979, by ten percent (10%), or more, the excess of the base quarter
 18        shall be paid to the county treasurer of each county for  distribution  to
 19        each  taxing  district in the county, except school districts, in the fol-
 20        lowing manner.
 21             The state tax commission shall compute the percentage that the  aver-
 22        age  amount  of  taxes collected from assessments for the years 1965, 1966
 23        and 1967 on the personal property described as business inventory in  sub-
 24        sections (1) and (2) of section 63-602W, Idaho Code, for each county bears
 25        to  the  average total amount of taxes collected from assessments for said
 26        years on the personal property described as business inventory in  subsec-
 27        tions  (1) and (2) of section 63-602W, Idaho Code, for all counties in the
 28        state. The percentage so determined for each county shall  be  applied  to
 29        the  sales  tax  distributed  under  this subsection and the resulting sum
 30        shall be paid to the county treasurer of each county for  distribution  to
 31        each taxing district, except school districts, in the county as follows:
 32             (i)   Each  year  the  county commissioners in each county shall take
 33             the tax charge, applicable to the current property roll equalized  by
 34             county commissioners sitting as a board of equalization, of each tax-
 35             ing  district  within the county, except school districts, and divide
 36             it by the total current tax charges applicable to the  current  prop-
 37             erty  roll  of  all taxing districts, except school districts, within
 38             said county and the resulting percentages shall  be  applied  to  the
 39             county's  proportionate  share  of  said  sales  tax  account and the
 40             resulting amount shall be distributed to each taxing district in  the
 41             county  periodically  but  not  less frequently than quarterly by the
 42             county auditor and applied by such taxing districts in the same  man-
 43             ner and in the same proportions as revenues from property taxation.
 44             (ii)  The  moneys  set aside and appropriated to the county treasurer
 45             out of the sales tax account above may be considered by the  counties
 46             and  other taxing districts and budgeted against at the same time, in
 47             the same manner and in the same year as revenues from taxation on all
 48             classes of personal property which these moneys replace.
 49        (3)  All moneys distributed pursuant to subsection  (e)  of  this  section
 50        shall be subject to the redistribution provisions of section 40-801, Idaho
 51        Code, where applicable.
 52        (f)  One  dollar  ($1.00)  on each application for certificate of title or
 53    initial  application  for  registration  of  a  motor   vehicle,   snowmobile,
 54    allterrain all-terrain vehicle or other vehicle processed by the county asses-
 55    sor  or  the  Idaho  transportation department excepting those applications in
                                                                        
                                           3
                                                                        
  1    which any sales or use taxes due have been previously collected by a retailer,
  2    shall be a fee for the services of the assessor of the  county  or  the  Idaho
  3    transportation department in collecting such taxes, and shall be paid into the
  4    current  expense  fund  of  the county or state highway account established in
  5    section 40-702, Idaho Code.
  6        (g)  Seven and three-quarters percent (7.75%) is continuously appropriated
  7    and shall be distributed to the revenue sharing account which  is  created  in
  8    the  state  operating fund, and the moneys in the revenue sharing account will
  9    be paid by the tax commission as follows:
 10        (1)  One-half (1/2) shall be paid to the various cities as follows:
 11             (i)   Fifty percent (50%) of such amount shall be paid to the various
 12             cities, and each city shall be entitled to an amount in  the  propor-
 13             tion  that the population of that city bears to the population of all
 14             cities within the state; and
 15             (ii)  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 preceding year's market value for assessment purposes
 18             for that city bears to the preceding year's market value for  assess-
 19             ment purposes for all cities within the state.
 20        (2)  One-half (1/2) shall be paid to the state's general account or to the
 21        various counties as follows:
 22             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 23             shall be distributed one forty-fourth (1/44) to each of  the  various
 24             counties; and
 25             (ii)  The  balance  of such amount shall be paid to the various coun-
 26             ties, and each county shall be entitled to an amount in  the  propor-
 27             tion  that  the  population of that county bears to the population of
 28             the state.
 29        (h)  Any moneys remaining over and  above  those  necessary  to  meet  and
 30    reserve for payments under other subsections of this section shall be distrib-
 31    uted to the general account.

Statement of Purpose / Fiscal Impact


                STATEMENT OF PURPOSE
                       RS 09882C1

This legislation increases the amount of the Sales Tax that 
is automatically distributed to the Permanent Building Fund 
(PBF) each year from $500,000 to $5 million.

Since 1965, the year sales taxes were first collected, $500,000 
of those taxes have been distributed to the Permanent Building 
Fund annually to help construct and maintain state buildings. 
Thirty-five years ago, half a million dollars was 1.8 percent of 
gross sales tax collections. Today, half a million dollars is 0.07 
percent of that amount. Were the FY 2001 PBF distribution in the 
same proportion as the FY 1966 amount, the Permanent Building Fund 
would receive $13.5 million.

The Permanent Building Fund receives revenue from a variety of 
sources including the sales tax, cigarette tax, beer tax, $10 
income tax filing fee (head tax), the lottery and interest from 
the Budget Stabilization Fund. Total FY 2001 PBF revenues are 
estimated to be $31 million.

The Permanent Building Fund received FY 2001 requests totaling 
$100 million for new building construction, as well as alteration, 
maintenance and repair of existing state buildings. It is important 
to note that those requests represent only a portion of the state's 
total need for new construction and maintenance projects.

                      FISCAL NOTE

This legislation will reduce the amount of sales taxes being 
distributed to the General Fund by $4.5 million per year.

CONTACT: Senator Atwell Parry
334-4735

STATEMENT OF PURPOSE/FISCAL NOTE                     S 1533