Print Friendly HOUSE BILL NO. 720 – School bldg contractors, sales tax
HOUSE BILL NO. 720
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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
03/07 House intro - 1st rdg - to printing
03/08 Rpt prt - to Rev/Tax
|||| 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
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.
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