Print Friendly HOUSE BILL NO. 728 – Sales Tax Council, created
HOUSE BILL NO. 728
View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating
text to be removed.
H0728...............................................by REVENUE AND TAXATION
SALES TAX COUNCIL CREATED - Adds to existing law to create the sales tax
council; to provide membership and duties; to provide for a limited test
authorization; to provide for confidentiality of taxpayer information; to
provide legislative oversight; to provide a final report; and providing a
03/09 House intro - 1st rdg - to printing
03/10 Rpt prt - to Rev/Tax
03/17 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/22 Ret'd to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 728
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES TAX; AMENDING TITLE 63, IDAHO CODE, BY THE ADDITION OF A
3 NEW CHAPTER 43, TITLE 63, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO PROVIDE
4 LEGISLATIVE INTENT, TO CREATE THE SALES TAX COUNCIL AND TO PROVIDE MEMBER-
5 SHIP, TO PROVIDE DUTIES, TO PROVIDE FOR A LIMITED TEST AUTHORIZATION, TO
6 PROVIDE FOR CONFIDENTIALITY OF TAXPAYER INFORMATION, TO PROVIDE LEGISLA-
7 TIVE OVERSIGHT AND TO PROVIDE A FINAL REPORT; DECLARING AN EMERGENCY AND
8 PROVIDING A SUNSET CLAUSE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
12 ter 43, Title 63, Idaho Code, and to read as follows:
13 CHAPTER 43
14 STREAMLINED SALES TAX SYSTEM FOR THE TWENTY-FIRST CENTURY ACT
15 63-4301. SHORT TITLE. This chapter may be cited as the "Streamlined Sales
16 Tax System for the Twenty-first Century Act."
17 63-4302. LEGISLATIVE FINDINGS AND INTENT. The legislature finds that:
18 (1) State and local tax systems should treat transactions in a competi-
19 tively neutral manner.
20 (2) A simplified sales and use tax system that treats all transactions in
21 a competitively neutral manner will strengthen and preserve the sales and use
22 tax as vital state and local revenue sources and preserve state fiscal sover-
24 (3) Remote sellers should not receive preferential tax treatment at the
25 expense of local "main street" merchants, nor should such vendors be burdened
26 with special, discriminatory or multiple taxes.
27 (4) The state should simplify sales and use taxes to reduce the adminis-
28 trative burden of collection.
29 (5) While states have the sovereign right to set their own tax policies,
30 states working together have the opportunity to develop a more simple, uniform
31 and fair system of state sales and use taxation without federal government
32 mandates or interference.
33 63-4303. SALES TAX COUNCIL. (1) There is hereby created a sales tax
34 council, hereinafter "council" to carry out the duties and responsibilities
35 enumerated in this chapter and to assist the Idaho state tax commission in its
36 efforts to simplify the Idaho sales tax, to cooperate in the northwest sales
37 tax simplification project and participate with other such organizations dedi-
38 cated to uniformity and simplification of sales and use taxes.
39 (2) The council shall be composed of:
40 (a) Two (2) senators and another person, all knowledgeable in sales and
1 use tax, appointed by the president pro tempore of the Idaho state senate;
3 (b) Two (2) representatives and another person, all knowledgeable in
4 sales and use tax, appointed by the speaker of the Idaho state house of
6 (3) Secretarial and administrative support shall be provided by the Idaho
7 state tax commission and all state agencies are requested to assist the coun-
8 cil in the execution of its duties.
9 63-4304. AUTHORIZATION TO ENTER INTO MULTISTATE DISCUSSIONS. The council
10 shall enter into discussions with states regarding development of a multi-
11 state, voluntary, streamlined system for sales and use tax collection and
12 administration. These discussions shall focus on a system that would have the
13 capability to determine whether the transaction is taxable or tax exempt, the
14 appropriate tax rate applied to the transaction, and the total tax due on the
15 transaction, and shall provide a method for collecting and remitting sales and
16 use taxes to the state. Such system may provide compensation for the costs of
17 collecting and remitting sales and use taxes. Discussions between the council
18 and other states may include, but are not limited to:
19 (1) The development of a "joint request for information" from potential
20 public and private parties governing the specifications for such system;
21 (2) The mechanism for compensating parties for the development and opera-
22 tion of such system;
23 (3) Establishment of minimum statutory simplification measures necessary
24 for state participation in such system;
25 (4) Measures to preserve confidentiality of taxpayer information and pri-
26 vacy rights of consumers.
27 Following these discussions, the council may proceed to issue a joint request
28 for information.
29 63-4305. LIMITED TEST AUTHORIZATION. The council is authorized to partic-
30 ipate in a sales tax pilot project with other states and selected businesses
31 to test means for simplifying sales and use tax administration and may enter
32 into joint agreements for that purpose.
33 (1) Agreements to participate in the test shall establish provisions for
34 the administration, imposition and collection of sales and use taxes resulting
35 in revenues paid that are substantially the same as would be paid under exist-
36 ing law.
37 (2) Parties to the agreements are excused from complying with the provi-
38 sions of, chapter 36, title 63, Idaho Code, to the extent a different proce-
39 dure is required by the agreements, except for confidentiality of taxpayer
40 information as detailed in sections 63-4306, 63-3076 and 63-3077, Idaho Code.
41 (3) Agreements authorized under this section shall terminate no later
42 than December 31, 2001.
43 63-4306. CONFIDENTIALITY OF TAXPAYER INFORMATION. Return information sub-
44 mitted to any party or parties acting for and on behalf of the state shall be
45 treated as confidential taxpayer information. Disclosure of confidential tax-
46 payer information necessary under this chapter shall be pursuant to a written
47 agreement between the Idaho state tax commission and the party or parties.
48 Such party or parties shall be bound by the same requirements of confidential-
49 ity as the Idaho state tax commission, including applicable penalties.
50 63-4307. LEGISLATIVE OVERSIGHT. The council shall provide testimony and
51 information as requested by the president pro tempore of the senate and the
1 speaker of the house of representatives and shall provide quarterly written
2 reports to the governor, to the speaker of the house of representatives,
3 minority leader of the house of representatives, the president pro tempore of
4 the senate, senate minority leader and others designated by the president pro
6 63-4308. FINAL REPORT. By March 1, 2001, the council shall report to the
7 governor, the speaker of the house of representatives, minority leader of the
8 house of representatives, president pro tempore of the senate, the senate
9 minority leader and to any others designated by the president pro tempore of
10 the senate and the speaker of the house of representatives, on the status of
11 multistate discussions and, if a proposed system has been agreed upon by some
12 of the participating states, shall also recommend whether the state should
13 participate in such system.
14 SECTION 2. 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 shall be null, void and of no force and effect on
17 and after July 1, 2001.
STATEMENT OF PURPOSE
This bill authorizes the State of Idaho to participate, with other states, in
the development of a "Streamlined Sales Tax System for the 21st Century." It
creates a Sales Tax Council of legislators and private sector individuals to engage
in development and testing of such a system. The State Tax Commission will
provide support to the program.
CONTACT: State Tax Commission
Phone: (208) 334-7530
STATEMENT OF PURPOSE/ FISCAL IMPACT H 728