2000 Legislation
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HOUSE BILL NO. 447 – Tax, mine licnse/income, techn corr

HOUSE BILL NO. 447

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H0447...............................................by REVENUE AND TAXATION
TAX - MINE LICENSE/INCOME - Amends existing law to make technical changes
relating to returns filed for mine license tax by providing for automatic
extension of time for filing, and for returns filed for income tax by
allowing tax preparers to use their identification number instead of social
security number; to provide that the deduction for retirement benefits may
be subject to additional limitations of law and rule applicable to
part-year residents or nonresident individuals; to delete the requirement
to file for trusts and estates if not required to file a federal return and
for partnerships and S-corporations without a resident partner or
shareholder; to delete the requirement for farmers to file withholding if
not required to withhold federal taxes; and to conform due date of tax
returns of farmer's cooperatives to federal due date without extensions.
                                                                        
01/27    House intro - 1st rdg - to printing
01/28    Rpt prt - to Rev/Tax
02/01    Rpt out - rec d/p - to 2nd rdg
02/02    2nd rdg - to 3rd rdg
02/04    3rd rdg - PASSED - 68-0-2
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
      Jones, Judd, 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, Trail(Miller), Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Kellogg, Tilman
    Floor Sponsor - Linford
    Title apvd - to Senate
02/07    Senate intro - 1st rdg - to Loc Gov
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 30-0-5
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Darrington, Deide, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough,
      King-Barrutia, McLaughlin, Noh, Parry, Riggs, Risch, Sandy,
      Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler,
      Whitworth, Williams
      NAYS--None
      Absent and excused--Danielson, Davis, Dunklin, Lee, Richardson
    Floor Sponsor - Ipsen
    Title apvd - to House
02/25    To enrol
02/28    Rpt enrol - Sp signed
02/29    Pres signed
03/01    To Governor
03/03    Governor signed
         Session Law Chapter 26
         Effective: 01/01/00

Bill Text


 H0447
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 447
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE MINE LICENSE TAX AND THE IDAHO INCOME  TAX;  AMENDING  SECTION
  3        47-1203,  IDAHO CODE, TO PROVIDE AN AUTOMATIC EXTENSION OF TIME FOR FILING
  4        MINE LICENSE TAX RETURNS; AMENDING SECTION 48-603B, IDAHO CODE, TO  PERMIT
  5        TAX  RETURN PREPARERS TO SUPPLY THEIR FEDERAL PREPARER IDENTIFICATION NUM-
  6        BER IN LIEU OF THEIR SOCIAL SECURITY NUMBER ON STATE  INCOME  TAX  RETURNS
  7        THEY PREPARE FOR OTHERS; AMENDING SECTION 63-3022A, IDAHO CODE, TO PROVIDE
  8        THAT THE DEDUCTION FOR CERTAIN RETIREMENT BENEFITS MAY BE SUBJECT TO ADDI-
  9        TIONAL  LIMITATIONS OF LAW AND RULE APPLICABLE TO PART-YEAR OR NONRESIDENT
 10        INDIVIDUALS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION  63-3027B,
 11        IDAHO  CODE, TO PROVIDE CORRECT CODE REFERENCES AND TO MAKE TECHNICAL COR-
 12        RECTIONS; AMENDING SECTION 63-3030, IDAHO CODE, TO DELETE A REQUIREMENT TO
 13        FILE AN INCOME TAX RETURN FOR TRUSTS AND ESTATES IF NOT REQUIRED TO FILE A
 14        FEDERAL RETURN AND FOR PARTNERSHIPS AND S-CORPORATIONS WITHOUT A  RESIDENT
 15        PARTNER  OR  SHAREHOLDER; AMENDING SECTION 63-3032, IDAHO CODE, TO CONFORM
 16        THE DUE DATE OF TAX RETURNS OF FARMER'S COOPERATIVES TO  THE  FEDERAL  DUE
 17        DATE  WITHOUT  EXTENSIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC-
 18        TION 63-3036, IDAHO CODE, TO ELIMINATE FILING INCOME  TAX  WITHHOLDING  BY
 19        FARMERS NOT REQUIRED TO WITHHOLD FEDERAL TAXES; DECLARING AN EMERGENCY AND
 20        PROVIDING A RETROACTIVE EFFECTIVE DATE.
                                                                        
 21    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 22        SECTION  1.  That  Section 47-1203, Idaho Code, be, and the same is hereby
 23    amended to read as follows:
                                                                        
 24        47-1203.  STATEMENT OF NET PROCEEDS FROM MINING OR EXTRACTING ORES  --  OR
 25    FROM  ROYALTY.  (a) Every person, copartnership, company, joint stock company,
 26    trust, corporation, or association mining  or  receiving  royalties  from  any
 27    quartz vein or lode, or placer or rock in place mining claim, containing gold,
 28    silver,  copper,  lead, zinc, coal, phosphate, limestone, or other precious or
 29    valuable minerals or metals, or mineral or metal deposits, must, on or  before
 30    the  fifteenth day of the fourth month following the close of the taxable year
 31    make a tax return to the state tax commission, stating specifically the  items
 32    of income and the deductions allowed by this act. For the purpose of enforcing
 33    this  act,  the  income tax returns filed in accordance with the provisions of
 34    the Idaho Income Tax Act shall be open to inspection by the officer designated
 35    to enforce this act.
 36        (b)  In the event the taxpayer is entitled to an  automatic  extension  of
 37    time  is  granted  to  file the income tax return under section 63-3033, Idaho
 38    Code, an automatic six (6) month extension  is  granted  to  file  the  return
 39    required  under  this  act.  if  a  copy  of the approved extension of time is
 40    attached to the return when filed. In all cases, where the state  tax  commis-
 41    sion has granted of an extension of time in which to file any return, interest
 42    shall be paid on any tax due from due date to date of payment at the rate pro-
 43    vided in section 63-3045, Idaho Code.
                                                                        
                                           2
                                                                        
  1        SECTION  2.  That  Section 48-603B, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        48-603B.  UNFAIR TAX RETURN PREPARATION PRACTICES. (1)  As  used  in  this
  4    section, unless the context otherwise requires:
  5        (a)  "Tax preparer" means a person who, for a fee, engages in the business
  6        of  assisting  with,  or  preparing,  federal,  state, or local government
  7        income tax returns.
  8        (b)  "Fee" means any moneys or valuable consideration paid or promised to
  9        be paid for services rendered or to be rendered by any person  or  persons
 10        functioning as or conducting the business of a tax preparer.
 11        (2)  The  following  acts or omissions related to the conduct of the busi-
 12    ness of the tax preparer, which are done by the tax preparer or any  employee,
 13    partner, officer, or member of the tax preparer are unlawful:
 14        (a)  Making  or  authorizing  in  any  manner or by any means whatever any
 15        statement written or oral which is untrue or misleading.
 16        (b)  Causing or allowing a consumer to sign any document in blank relating
 17        to a tax return thereof.
 18        (c)  Failing or refusing to give to a consumer  a  copy  of  any  document
 19        requiring his signature, as soon as the consumer signs such document.
 20        (d)  Failing  to maintain a copy of any tax return prepared for a consumer
 21        for the applicable statute of limitation period on federal tax returns and
 22        state tax returns.
 23        (e)  Making false promises of a character likely to  influence,  persuade,
 24        or induce a consumer to authorize the tax preparation service.
 25        (3) (a)  It  is  unlawful  for  any person, including an individual, firm,
 26        corporation, association, partnership, joint venture, or any  employee  or
 27        agent  therefor,  to use or disclose any information obtained in the busi-
 28        ness of preparing federal or state income tax returns  or  assisting  tax-
 29        payers  in  preparing such returns unless such use or disclosure is within
 30        any of the following:
 31             (i)   Consented to in writing by the taxpayer in a separate document.
 32             (ii)  Expressly authorized by state or federal law.
 33             (iii) Necessary to the preparation of the return.
 34             (iv)  Pursuant to court order.
 35        (b)  For the purposes of this section, a person is engaged in the business
 36        of preparing federal or state income tax returns or assisting taxpayers in
 37        preparing such returns if he does either of the following:
 38             (i)   Advertises, or gives publicity to the effect that  he  prepares
 39             or  assists  others in the preparation of state or federal income tax
 40             returns.
 41             (ii)  Prepares or assists others in the preparation of state or  fed-
 42             eral income tax returns for compensation.
 43        (4) (a)  It is unlawful for any person, including any individual, associa-
 44        tion,  partnership,  joint  venture, or any employee or agent therefor, to
 45        fail to sign any state income tax return, or to fail to include his  name,
 46        address,  and  social  security  number  or preparer identification number
 47        issued under 26 U.S.C. 6109 on any state income tax return, which he  pre-
 48        pares  for  another  for  compensation, or which he assists another in the
 49        preparation of for compensation.
 50        (b)  It is unlawful for any corporation to fail to include  its  name  and
 51        address  on  any state income tax return which it prepares for another for
 52        compensation, or which it assists another in the preparation of  for  com-
 53        pensation.
 54        (5)  A person who renders mere mechanical assistance in the preparation of
                                                                        
                                           3
                                                                        
  1    a return, declaration, statement, or other document is not considered, for the
  2    purposes  of  this section, as preparing the return, declaration, statement or
  3    other document.
                                                                        
  4        SECTION 3.  That Section 63-3022A, Idaho Code, be, and the same is  hereby
  5    amended to read as follows:
                                                                        
  6        63-3022A.  DEDUCTION OF CERTAIN RETIREMENT BENEFITS. (a) For taxable years
  7    commencing on or after January 1, 1973, aAn amount specified by subsection (b)
  8    of  this  section  of  the following retirement benefits may be deducted by an
  9    Idaho resident individual from taxable income if such Idaho resident  individ-
 10    ual  has either attained age sixty-five (65) years, or has attained age sixty-
 11    two (62) years and is classified as disabled:
 12        (1)  Retirement annuities paid by  the  United  States  of  America  to  a
 13        retired civil service employee or the unremarried widow of a retired civil
 14        service employee.
 15        (2)  Retirement  benefits  paid  from the firemen's retirement fund of the
 16        state of Idaho to a retired fireman or the unremarried widow of a  retired
 17        fireman.
 18        (3)  Retirement  benefits  paid  from the policemen's retirement fund of a
 19        city within this state to a retired policeman or the unremarried widow  of
 20        a retired policeman.
 21        (4)  Retirement benefits paid by the United States of America to a retired
 22        member  of  the  military services of the United States or the unremarried
 23        widow of such member.
 24        (b)  The amount of retirement benefits that may be deducted  from  taxable
 25    income  shall  be an amount not in excess of maximum retirement benefits under
 26    the social security act, as amended, on the date on which this act  is  passed
 27    and approved, including adjustments to be made based upon consumer price index
 28    adjustments  provided in section 215 of the social security act. The state tax
 29    commission shall ascertain benefit changes made in accordance with the  social
 30    security  act  and  publish the appropriate deduction amounts provided by this
 31    section reflecting such changes annually. Maximum  retirement  benefits  under
 32    the social security act shall mean:
 33        (1)  In  the  case  of a taxpayer who files a joint return with his spouse
 34        for the tax year, an amount equal to the maximum social security  benefits
 35        payable  for  the tax year to a man attaining age sixty-five (65) years in
 36        the tax year who has earned the maximum earnings creditable  under  social
 37        security  for the years used in the computation of his benefits, and whose
 38        spouse has no social security benefits except those payable on his  record
 39        of earnings.
 40        (2)  In the case of a taxpayer who is not married, an amount equal to max-
 41        imum social security benefits payable for the tax year to a person attain-
 42        ing  age  sixty-five (65) years in the tax year who has earned the maximum
 43        earnings creditable under social security for the years used in the compu-
 44        tation of his benefits.
 45        (3)  In the case of an unremarried widow, an amount equal to  the  maximum
 46        social security benefits payable for the tax year to a widow attaining age
 47        sixty-five  (65) years in the tax year who has no social security benefits
 48        except those to which she is entitled on her deceased husband's record and
 49        whose husband had received no reduced retirement  benefits  prior  to  his
 50        death  and  whose husband had earned the maximum earnings creditable under
 51        social security for the years used in  the  computation  of  his  benefits
 52        under social security.
 53        (4)  Maximum retirement benefits shall, in every case, take into consider-
                                                                        
                                           4
                                                                        
  1        ation  and  be  adjusted to reflect adjustments that would be made to such
  2        amounts had they been received as social security benefits as  the  result
  3        of the receipt of earnings in excess of earnings limitations. The terms in
  4        this paragraph are those defined in the social security act.
  5        (5)  Taxpayers not described in paragraphs (1), (2),  (3) and (4) of this
  6        subsection  may  not  deduct  any amount of retirement benefits under this
  7        section.
  8        (c)  The total deduction under this  section  may  not  exceed  the  total
  9    amount  of  retirement benefits or annuities which are described in subsection
 10    (a) of this section and which are included in the taxpayer's gross  income  in
 11    the  tax  year.  If  the taxpayer or the taxpayer's spouse receives retirement
 12    benefits under the federal railroad retirement act or the federal social secu-
 13    rity act in the tax year, then the amount of any retirement annuities computed
 14    under subsection (b) of this section shall be reduced by the  amount  of  such
 15    federal  railroad  retirement  act  and federal social security act retirement
 16    benefits received by either the taxpayer or the  taxpayer's  spouse,  and  the
 17    lesser of the amount so computed or the total amount of retirement benefits or
 18    annuities  which are described in subsection (a) of this section and which are
 19    included in the taxpayer's gross income shall constitute the allowable  deduc-
 20    tion.  Furthermore,  the  allowable deduction as calculated under this section
 21    may be subject to additional  limitations  under  section  63-3026A(6),  Idaho
 22    Code, and the rules promulgated thereunder.
 23        (d)  As used in this section, the word "widow" shall include a widower.
                                                                        
 24        SECTION  4.  That Section 63-3027B, Idaho Code, be, and the same is hereby
 25    amended to read as follows:
                                                                        
 26        63-3027B.  WATER'S-EDGE ELECTION. (a) Notwithstanding  the  provisions  of
 27    subsections  (rs)  and  (st)  of section 63-3027, Idaho Code, a qualified tax-
 28    payer, as defined in paragraph (3) of subsection (b)  of  this  section  whose
 29    income  is  subject to the tax imposed under this chapter, may elect to deter-
 30    mine its income derived from or attributable to sources within this state pur-
 31    suant to a water's-edge election in accordance with  the  provisions  of  this
 32    chapter, as modified by sections 63-3027B through 63-3027E, Idaho Code. A tax-
 33    payer who makes a water's-edge election shall take into account the income and
 34    apportionment  factors  of only affiliated corporations in a unitary relation-
 35    ship with the taxpayer, other than corporations filing elections under section
 36    936 of the Internal Revenue Code, and which either file a federal  income  tax
 37    return  under  the Internal Revenue Code or are included in a federal consoli-
 38    dated return.
 39        (b)  For purposes of this section:
 40        (1)  The phrase "over fifty per cent percent (50%)  of  the  voting  stock
 41        directly  or  indirectly owned or controlled" shall be substituted for the
 42        phrase "at least eighty per cent percent (80%)" each place it  appears  in
 43        section 1504 of the Internal Revenue Code.
 44        (2)  Any  combined return shall include only corporations the voting stock
 45        of which is more than fifty per cent percent (50%) owned directly or indi-
 46        rectly by a common owner or owners.
 47        (3)  A "qualified taxpayer" is a corporation which files, with  the  state
 48        income tax return on which the water's-edge election is made, a consent to
 49        the reasonable production of documents within the taxing jurisdiction. The
 50        consent  shall remain in effect so long as the water's-edge election is in
 51        effect.
 52        (4)  "Water's-edge combined group" shall mean all corporations or entities
 53        properly includable in the election of a taxpayer  in  subsection  (a)  of
                                                                        
                                           5
                                                                        
  1        this section.
  2        (5)  The  only  income  of  a  foreign  sales corporation to be taken into
  3        account shall be the income  subject  to  federal  taxation,  taking  into
  4        account the provisions of section 921 of the Internal Revenue Code.
  5        (c)  A  water's-edge  election  may  be disregarded, and the income of the
  6    taxpayer  determined without regard to the provisions of this section pursuant
  7    to those conditions which may be required by the state  tax  commission  under
  8    subsection  (b)  of  section 63-3027C, Idaho Code, if any corporation fails to
  9    comply with:
 10        (1)  The domestic disclosure spreadsheet filing  requirements  defined  in
 11        section 63-3027E, Idaho Code; or
 12        (2)  This state's legal and procedural requirements.
                                                                        
 13        SECTION  5.  That  Section 63-3030, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        63-3030.  PERSONS REQUIRED TO MAKE RETURNS OF  INCOME.  (a)  Returns  with
 16    respect  to taxes measured by income in this chapter shall be made by the fol-
 17    lowing:
 18        (1)  Every resident individual required to file  a  federal  return  under
 19        section 6012(a)(1) of the Internal Revenue Code.
 20        (2)  Any  nonresident  individual  having  for  the current taxable year a
 21        gross income from Idaho sources in excess of  two  thousand  five  hundred
 22        dollars ($2,500), or any part-year resident individual having for the cur-
 23        rent  taxable  year a gross income from  all sources while domiciled in or
 24        residing in Idaho, and from Idaho sources while not domiciled in  and  not
 25        residing  in Idaho, which in total are in excess of two thousand five hun-
 26        dred dollars ($2,500);
 27        (3)  Every corporation which is transacting business in this state, autho-
 28        rized to transact business in this state or having income attributable  to
 29        this state, unless exempt from the tax imposed in this chapter;
 30        (4)  Every  corporation reporting as an S corporation pursuant to Internal
 31        Revenue Code sections 1361 through 1379 to the federal  government,  which
 32        is  transacting business in this state, or is authorized to transact busi-
 33        ness in this state. or which has one (1) or more shareholder who is a res-
 34        ident of this state. A corporation which is reporting as an S  corporation
 35        to the federal government must report to the state of Idaho as an S corpo-
 36        ration  for and during the same period or periods in which its election to
 37        report as such a corporation is effective for  federal  tax  purposes  and
 38        must  identify  itself  as an S corporation on its income tax return filed
 39        with this state;
 40        (5)  Every estate, the residence of which estate is  in  Idaho,  having  a
 41        gross income of six hundred dollars ($600) or more for the current taxable
 42        year;
 43        (6)  Every  estate, the residence of which is in a state other than Idaho,
 44        having a gross income from Idaho sources in excess of six hundred  dollars
 45        ($600);
 46        (7)  Every trust required to file a federal return under the Internal Rev-
 47        enue  Code,  the residence of which trust is in Idaho, having gross income
 48        of one hundred dollars ($100) or more for the current taxable year;
 49        (8)  Every trust required to file a federal return under the Internal Rev-
 50        enue Code, the residence of which is in a state other than Idaho, having a
 51        gross income from Idaho sources in excess of one hundred dollars ($100);
 52        (9)  Every partnership which transacts business or which has  one  (1)  or
 53        more  partner which is a resident of in this state. Such return shall be a
                                                                        
                                           6
                                                                        
  1        supplemental information return and shall include the names and  addresses
  2        of  the  persons  who  would be entitled to share in the net income of the
  3        partnership if distributed and the amount of the distributive    share  of
  4        each person. Such return shall be signed by one (1) of the partners.
  5        (b)  Returns of fiduciaries and receivers:
  6        (1)  Fiduciaries  and receivers shall file returns with the state tax com-
  7        mission in accordance with the provisions of section 6012(b) of the Inter-
  8        nal Revenue Code.
                                                                        
  9        SECTION 6.  That Section 63-3032, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
                                                                        
 11        63-3032.  TIME  FOR  FILING  INCOME TAX RETURNS. (1) Except as provided in
 12    section 63-3033, Idaho Code:
 13        (a)  Returns made on the basis of the calendar year shall be filed in  the
 14        office  of  the Idaho state tax commission on or before the 15th fifteenth
 15        day of April following the close of the calendar year and returns made  on
 16        the basis of a fiscal year shall be filed in the office of the Idaho state
 17        tax  commission  on  or  before the 15th fifteenth day of the fourth month
 18        following the close of the fiscal year.
 19        (b)  In the case of a return for any period of less than one (1) year, the
 20        return shall be filed on or before the date required in this  section,  or
 21        on  or  before  such date as required for such tax period by the iInternal
 22        rRevenue cCode, whichever is later.
 23        (2)  Returns made by farmer's cooperatives to the extent  the  cooperative
 24    is  taxable under section 63-3025B, Idaho Code, shall be due on or before Sep-
 25    tember 15th following the close of the calendar year or on or before the  15th
 26    fifteenth  day  of the ninth month following the close of the fiscal year. The
 27    provisions of section 63-3033, Idaho Code, shall  not  apply  to  returns  due
 28    under this subsection.
                                                                        
 29        SECTION  7.  That  Section 63-3036, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        63-3036.  STATE WITHHOLDING TAX FOR FARMERS. (1) Every farmer  who  is  an
 32    employer  required by the provisions of the Internal Revenue Code to withhold,
 33    collect, and pay income tax on wages paid by such  employer  to  any  employee
 34    shall  at  the time of the payment of wages, salaries, bonuses or other emolu-
 35    ments to an employee, deduct and retain  therefrom  an  amount  determined  in
 36    accordance  with  section  63-3035, Idaho Code, and the amount so withheld and
 37    deducted shall be held by said farmer-employer in trust for the state of Idaho
 38    and for the payment thereof to the state tax commission. Provided, that no tax
 39    need be withheld from an employee whose wages,  salaries,  bonuses  and  other
 40    emoluments total less than one thousand dollars ($1,000) for the tax year.
 41        (2)  The  tax  so  withheld  by  a farmer-employer subject to this section
 42    shall be paid to the state tax commission:
 43        (a)  Except as provided in paragraph (b) of this subsection, on or  before
 44        the  last  day  of  February  of the year following the year in which such
 45        deduction was made.
 46        (b)  In the case of an employer who is a "covered employer"  paying  wages
 47        for  "agricultural  labor,"  as  those terms are defined in the employment
 48        security law in chapter 13, title 72, Idaho Code, on or before the date on
 49        which contributions are due from the employer to the department  of  labor
 50        under the employment security law.
 51        (3)  The  farmer-employer  shall  deliver  to  the  state tax commission a
                                                                        
                                           7
                                                                        
  1    return  upon such form as shall be prescribed by  said  state  tax  commission
  2    showing  the  amounts  of wages, salaries, bonuses or other emoluments paid to
  3    his employee, the amount deducted therefrom in accordance with  this  section,
  4    and such other pertinent and necessary information as the state tax commission
  5    may require on or before the date payments required by this section are due.
  6        (4)  The  farmer-employer  making such a deduction as provided for in this
  7    section shall furnish to the employee annually, but not later than thirty (30)
  8    days after the end of the calendar year, a record of the  amount  of  the  tax
  9    withheld  from such employee on forms to be prescribed, prepared and furnished
 10    by the state tax commission and at the same time every employer shall  file  a
 11    copy thereof with the state tax commission. The provisions of subsections (d),
 12    (e),  (f),  (g) and (h) of section 63-3035, Idaho Code, shall be applicable to
 13    the tax withheld by the farmer-employer under this section.
                                                                        
 14        SECTION 8.  An emergency existing  therefor,  which  emergency  is  hereby
 15    declared to exist, this act shall be in full force and effect on and after its
 16    passage and approval, and retroactively to January 1, 2000.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                            RS09332C1

This bill makes technical and other minor changes to the statutes 
relating to the Idaho income tax and the mine license tax. These 
changes are:

To provide automatic extension of time for filing mine license tax 
returns.

To permit tax return preparers to supply their federal preparer 
identification number instead of their social security number on 
state income tax returns which they prepare for others.  This is 
a change to the Consumer Protection Act.

To extend the deduction for retirement benefits to part-year 
residents.

To correct cross-references in Idaho Code Section 63-3027B.

To repeal the income tax return filing requirement for trusts 
and estates not required to file a federal return and for 
partnerships and S-corporations without a resident partner or 
shareholder.

To conform the due date of tax returns of farmer's cooperatives 
to the federal due date without extensions.

To eliminate filing income tax withholding by farmers not required 
to withhold federal taxes.

                           FISCAL NOTE

Loss to Permanent Building Fund: $ 1,000
Loss to General Fund  $75,000 

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

STATEMENT OF PURPOSE/ FISCAL IMPACT          Bill No.   H 447