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H0582...............................................by REVENUE AND TAXATION
CIGARETTE TAX - Amends existing law to provide that taxes previously paid
for cigarettes and tobacco products, on accounts later found to be
worthless and actually charged off, may be credited upon subsequent payment
of the tax, or, if no tax is due, refunded; and to provide that if such
accounts are thereafter collected, the tax shall be paid based on the
proportion of the amount collected.
02/16 House intro - 1st rdg - to printing
02/17 Rpt prt - to Rev/Tax
02/25 Rpt out - rec d/p - to 2nd rdg
02/28 2nd rdg - to 3rd rdg
02/29 3rd rdg - PASSED - 65-4-1
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Callister, Campbell, Chase, Cheirrett, Clark, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hammond, Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg,
Kempton, Kendell, Kunz, Linford, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Mortensen, Moss, Pearce, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer(Tiegs), Sellman,
Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman,
Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Bruneel, Hansen(23), Lake, Moyle
Absent and excused -- Crow
Floor Sponsor - Kunz
Title apvd - to Senate
03/01 Senate intro - 1st rdg - to Loc Gov
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/28 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 - Frasure
Title apvd - to House
03/29 To enrol
03/30 Rpt enrol - Sp signed - Pres signed
03/31 To Governor
04/03 Governor signed
Session Law Chapter 163
Effective: 01/01/00
H0582
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 582
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE TAX ON CIGARETTES AND TOBACCO PRODUCTS; AMENDING SECTION
3 63-2559, IDAHO CODE, TO PROVIDE THAT TAXES PAID ON TOBACCO PRODUCTS SOLD
4 ON OR AFTER JANUARY 1, 2000, ON ACCOUNTS LATER FOUND TO BE WORTHLESS AND
5 ACTUALLY CHARGED-OFF MAY BE CREDITED UPON A SUBSEQUENT PAYMENT OF THE TAX
6 ON TOBACCO PRODUCTS OR, IF NO SUCH TAX IS DUE, REFUNDED AND IF ALL OR PART
7 OF SUCH AN ACCOUNT IS THEREAFTER COLLECTED, THE TAX SHALL BE PAID BASED
8 UPON THE PROPORTION OF THE AMOUNT COLLECTED AND TO MAKE A TECHNICAL COR-
9 RECTION; AMENDING SECTION 63-2510, IDAHO CODE, TO PROVIDE THAT TAXES PAID
10 ON CIGARETTES SOLD ON OR AFTER JANUARY 1, 2000, ON ACCOUNTS LATER FOUND TO
11 BE WORTHLESS AND ACTUALLY CHARGED-OFF MAY BE CREDITED UPON A SUBSEQUENT
12 PAYMENT OF THE TAX ON CIGARETTES OR, IF NO SUCH TAX IS DUE, REFUNDED AND
13 IF ALL OR PART OF SUCH AN ACCOUNT IS THEREAFTER COLLECTED, THE TAX SHALL
14 BE PAID BASED UPON THE PROPORTION OF THE AMOUNT COLLECTED AND TO MAKE A
15 TECHNICAL CORRECTION; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE
16 APPLICATION.
17 Be It Enacted by the Legislature of the State of Idaho:
18 SECTION 1. That Section 63-2559, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-2559. WHEN CREDIT MAY BE OBTAINED FOR TAX PAID. (1) Where tobacco
21 products upon which the tax imposed by this chapter has been reported and
22 paid, are shipped or transported by the distributor to retailers without the
23 state, to be sold by those retailers, or are returned to the manufacturer by
24 the distributor or destroyed by the distributor, credit of such tax may be
25 made to the distributor in accordance with regulations rules prescribed by the
26 commission.
27 (2) Taxes paid on tobacco products sold on or after January 1, 2000, on
28 accounts later found to be worthless and actually charged-off may be credited
29 upon a subsequent payment of the tax on tobacco products or, if no such tax is
30 due, refunded. If all or part of such an account is thereafter collected, the
31 tax shall be paid based upon the proportion of the amount collected.
32 SECTION 2. That Section 63-2510, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 63-2510. PAYMENT OF TAX -- RETURNS -- ACCOUNTING FOR STAMPS. (1) The cig-
35 arette taxes imposed in section 63-2506, Idaho Code, are due from the person
36 required under section 63-2508, Idaho Code, to affix stamps, and are payable
37 to the state tax commission monthly, together with the return required in this
38 section.
39 (2) Every person owing cigarette taxes and every wholesaler shall file a
40 return with the state tax commission in such form as the commission shall pre-
41 scribe. The return shall report all taxes due regarding cigarettes received
2
1 during the month or other reporting period, approved by the state tax commis-
2 sion, to which the return relates. The return shall contain such other infor-
3 mation as the state tax commission shall require, and shall be signed by the
4 person required to file the return or by such person's duly authorized agent.
5 The return shall be filed on or before the twentieth day of the month follow-
6 ing the end of the taxable period to which the return relates.
7 (3) The amount allowed as compensation for affixing stamps under section
8 63-2509, Idaho Code, shall be separately stated on the return as a credit
9 against taxes due on the return.
10 (4) In addition to reporting the tax due as provided in this section, the
11 return shall provide an accounting of all cigarette stamps acquired, held, and
12 affixed by the wholesaler. The return shall include:
13 (a) The number of stamps which were held at the beginning of the report-
14 ing period and were not affixed to packages;
15 (b) The number of stamps acquired during the reporting period;
16 (c) The number of stamps affixed to packages during the reporting period;
17 (d) The number of unaffixed stamps held at the end of the reporting
18 period; and
19 (e) The number, if any, of stamps lost or destroyed. If stamps are lost
20 or destroyed, a statement describing the circumstances giving rise to the
21 loss or destruction shall accompany the return.
22 (5) In the event that any stamps obtained by a wholesaler are lost,
23 destroyed, or otherwise unaccounted for, the wholesaler shall be liable for an
24 amount of tax equal to the tax on the number of cigarettes to which such
25 stamps would have been affixed, unless the wholesaler can establish, by clear
26 and convincing evidence, that a specific number of stamps were actually
27 destroyed or mutilated in such a manner as to render them unusable.
28 (6) In the event that a wholesaler or any other person in possession of
29 unused cigarette stamps shall cease doing business as a wholesaler of ciga-
30 rettes, such wholesaler or other person shall return all unused stamps to the
31 state tax commission or shall be liable for an amount of tax equal to the tax
32 on the number of cigarettes to which such stamps would have been affixed.
33 (7) A wholesaler may claim a credit against taxes due on the tax return
34 for taxes previously paid on cigarettes, which after stamps are affixed,
35 become unmarketable and are returned to the manufacturer. When such return is
36 verified in such manner as the state tax commission may, by regulation rule
37 provide, the credit applies to the tax return for the month in which the veri-
38 fication occurs; except that, any amount of credit exceeding the tax due on
39 the tax return may be carried forward to the succeeding tax return, in chrono-
40 logical order until exhausted.
41 (8) Taxes paid on cigarettes sold on or after January 1, 2000, on
42 accounts later found to be worthless and actually charged-off may be credited
43 upon a subsequent payment of the tax on cigarettes or, if no such tax is due,
44 refunded. If all or part of such an account is thereafter collected, the tax
45 shall be paid based upon the proportion of the amount collected.
46 SECTION 3. An emergency existing therefor, which emergency is hereby
47 declared to exist, this act shall be in full force and effect on and after its
48 passage and approval, and retroactively to January 1, 2000.
STATEMENT OF PURPOSE
RS09993C1
The purpose of this legislation is to amend 63-2559 and 63-2510 of the Idaho
Code to provide that taxes previously paid on cigarettes and tobacco products by
accounts found to be worthless and actually charged-off, may be credited upon a
subsequent payment of the tax on cigarette and tobacco, or if no such tax is due,
refunded. This bill provides for retroactive application.
FISCAL NOTE
There will be an estimated reduction of $3,587.00 from the General Fund and an
estimated reduction of $11,413.00 from other funds.
CONTACT: Rep. Kent Kunz
Karleane Allen, Idaho Wholesaler Marketers Assn.
Phone: (208) 375-5806
STATEMENT OF PURPOSE/ FISCAL IMPACT H 582