2001 Legislation
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HOUSE BILL NO. 91 – Wheat Comm, tax rate, maximum


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Daily Data Tracking History

H0091...............................................by AGRICULTURAL AFFAIRS
WHEAT COMMISSION - Amends existing law to authorize the Idaho Wheat
Commission to establish the rate of tax imposed on wheat, not to exceed the
existing rate of two cents per bushel.
01/25    House intro - 1st rdg - to printing
01/26    Rpt prt - to Agric Aff

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 91
                             BY AGRICULTURAL AFFAIRS COMMITTEE
  1                                        AN ACT
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION  1.  That  Section 22-3315, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
  8        22-3315.  IMPOSITION OF TAX AND PROVISION FOR  LATE  FEES.  (1)  From  and
  9    after the first day of July, 1992, there is hereby levied and imposed a tax of
 10    not  to  exceed  two  cents (2) per bushel on all wheat grown in the state of
 11    Idaho or given to Idaho growers under a crop reduction program,  and  sold  or
 12    contracted through commercial channels, and each and every crop grown or wheat
 13    given  to  growers under a crop reduction program thereafter. The tax shall be
 14    due on wheat given to growers under a crop reduction program and sold or  con-
 15    tracted through commercial channels, regardless of any deduction of the tax on
 16    this same wheat prior to it being given to the grower. The tax shall be due on
 17    or  before the time when such wheat is first sold or contracted in the commer-
 18    cial channels and shall be paid at such time or times as the  commission  may,
 19    by rule, or regulation, prescribe, as hereinafter provided, but not later than
 20    the  15th day of the month next succeeding the three (3) month period in which
 21    such wheat is sold or contracted in commercial channels. The commission  shall
 22    designate the quarters (three (3) month periods) for the purpose of collection
 23    of this tax.
 24        (2)  The  tax  shall  be  levied and assessed to the grower at the time of
 25    delivery for sale and shall be deducted by the first purchaser from the  price
 26    paid to the grower at the time of sale or in case of a lienholder who may pos-
 27    sess  such  wheat  under his lien, the tax shall be deducted by the lienholder
 28    from the proceeds of the claim secured by such lien at the time the  wheat  is
 29    pledged  or  mortgaged.  The tax shall be deducted as provided in this section
 30    whether the wheat is stored in this or any other state.  The  commission  may,
 31    however,  permit  any  federal  corporation,  such  as  the Ccommodity Ccredit
 32    Ccorporation, to waive its responsibility for the collection of the tax,  pro-
 33    vided the amount of the tax is one dollar ($1.00) or less.
 34        (3)  It  shall be within the discretion of the commission to establish the
 35    amount of the tax to be levied. The amount of the tax to be levied  shall  not
 36    exceed  two cents (2) for any fiscal year. The decision whether to adjust the
 37    amount of the tax to be levied and the time for which the adjusted levy  shall
 38    be in effect shall require the vote of a majority of the commission members.
 39        (4)  The  tax constitutes a lien prior to all other liens and encumbrances
 40    upon such wheat except liens which are declared prior by operation of a  stat-
 41    ute of this state.
 42        (45)  Any  person  or  firm  who makes payment to the commission at a date
 43    later than that prescribed in this section may be subject to  a  late  payment
  1    penalty  as  set forth by the commission by rule. and regulation. Such penalty
  2    shall not exceed the rate of fifteen percent (15%) per  annum  on  the  amount
  3    due.  In  addition  to  the above penalty, the commission shall be entitled to
  4    recover all costs, fees, and reasonable attorney's fees incurred in  the  col-
  5    lection of the tax and penalty provided for in this section.

Statement of Purpose / Fiscal Impact

                   STATEMENT OF PURPOSE
This bill is to provide flexibility to the Idaho Wheat
Commissioners to adjust the wheat tax in conjunction with annual
production. The bill maintains the maximum wheat tax rate of
$0.02 per bushel previously established by the legislature, with
authority provided to the commissioners to reduce or increase the
tax up to the $0.02.

                      FISCAL IMPACT
There is no impact on the General Fund of Idaho.

The current cash balance of the IWC is $5,164,300. IWC has
maintained an average annual budget for the past four years of
$2, 1000, 000.

When the wheat tax was increased to $0.02 in 1992, to address
projected shortfalls, it was based on an average annual wheat
production of 80,000,000 bushels. The very next year, Idaho
production increased to 100,000,000 million bushels and has
remained close to that amount ever since. Estimated production
levels for the near future indicate a continuing level close to
100,000,000 bushels per year, although any year could be

Due to the IWC s current fiscal condition and future wheat
production estimates, at this time the commissioners are
considering a reduction of the tax, most likely to $0.015 per
bushel. With the proposed reduction the wheat producers of Idaho,
as an aggregate, would realize, on average, a yearly income
increase of $500,000. There is no negative impact to the general

            Name:     Dave Sparrow, Idaho Wheat Commission
                 334 2353
            STATEMENT OF PURPOSE/FISCAL NOTE                           H91