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HOUSE BILL NO. 720

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Daily Data Tracking History

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H0720...............................................by REVENUE AND TAXATION
SCHOOL BUILDINGS - CONTRACTORS - Adds to existing law to provide a sales
and use tax exemption on the sale of tangible personal property to a
contractor or subcontractor who is building, remodeling or repairing a
public school building; and to provide qualification criteria for a public
school building.
                                                                        
03/07    House intro - 1st rdg - to printing
03/08    Rpt prt - to Rev/Tax

Bill Text

 H0720
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 720
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO EXEMPTIONS FROM THE SALES TAX;  AMENDING  CHAPTER  36,  TITLE  63,
  3        IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION 63-3622OO, IDAHO CODE, TO
  4        PROVIDE A STATE SALES AND USE TAX EXEMPTION ON THE SALE OF  TANGIBLE  PER-
  5        SONAL  PROPERTY TO A CONTRACTOR OR SUBCONTRACTOR WHO IS BUILDING, REMODEL-
  6        ING OR REPAIRING A PUBLIC SCHOOL BUILDING  AND  TO  PROVIDE  QUALIFICATION
  7        CRITERIA FOR A PUBLIC SCHOOL BUILDING.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Chapter  36,  Title 63, Idaho Code, be, and the same is
 10    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 11    ignated as Section 63-3622OO, Idaho Code, and to read as follows:
                                                                        
 12        63-3622OO.  CONTRACTORS  OR  SUBCONTRACTORS  ON  PUBLIC  SCHOOL BUILDINGS.
 13    There is exempted from the taxes imposed by this chapter, the sale of tangible
 14    personal property to a contractor, or a subcontractor of that contractor,  who
 15    is building, remodeling or repairing a public school building and the tangible
 16    personal  property  is to be used in the building, remodeling or repair of the
 17    public school building. In order to  qualify  as  a  public  school  building,
 18    moneys  from  the school foundation formula (chapter 10, title 33, Idaho Code)
 19    shall be distributed to the school district or entity that is responsible  for
 20    building,  remodeling  or  repairing the building and which school district or
 21    entity has entered into a contract or agreement with the contractor or subcon-
 22    tractor claiming the exemption under this section.

Statement of Purpose / Fiscal Impact

     
                           
                STATEMENT OF PURPOSE 
                       RS09963 
     
     Idaho Code 63-36220 (1) exempts educational institutions from sales tax on
     materials if their employees install the materials.   If a contractor installs the
     materials, sales tax must be collected. This legislation allows new school
     buildings, repairs and remodeling to be done sales tax free. 
     
     
     
     
                    FISCAL IMPACT 
     
     Depending upon the amount of school construction being done in any given year, 
     there will be an impact to the general fund of up to $2.5 million.    Since most
     schools are being built with bonded indebtedness, there could be a savings to
     property tax payers of up to $5 million in sales tax and interest. 
     
               CONTACT:  Rep. Jeff Alltus            (208) 332-1000
               Rep. Clair Cheirrett      (208) 332-1000 
     
     
     
                                             STATEMENT OF PURPOSE/ FISCAL IMPACT                    H 720