2001 Legislation
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HOUSE BILL NO. 105 – Sales tax, food exempt

HOUSE BILL NO. 105

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H0105...............................................................by SALI
SALES TAX - Amends and repeals existing law to increase the grocery tax
credit on income tax returns for certain residents; to delete the grocery
tax credit, effective January 1, 2002; to provide an exemption from sales
and use tax for certain food sold for human consumption; and to provide for
an increase in the percentage of appropriated funds distributed to the
Revenue Sharing Account from sales tax moneys.
                                                                        
01/29    House intro - 1st rdg - to printing
01/30    Rpt prt - House desk
02/01    To Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 105
                                                                        
                                          BY SALI
                                                                        
  1                                        AN ACT
  2    RELATING TO CERTAIN CREDITS AND REFUNDS AND SALES AND USE TAX;  AMENDING  SEC-
  3        TION  63-3024A,  IDAHO  CODE,  TO INCREASE INCOME TAX CREDITS, REFUNDS AND
  4        PAYMENTS FROM THE REFUND FUND FOR CERTAIN RESIDENTS AND TO MAKE  TECHNICAL
  5        CORRECTIONS;  REPEALING  SECTION  63-3024A,  IDAHO  CODE; AMENDING SECTION
  6        63-3029F, IDAHO CODE,  TO  STRIKE  A   CODE  REFERENCE;  AMENDING  SECTION
  7        63-3619,  IDAHO  CODE,  TO PROVIDE AN EXEMPTION FROM SALES TAX FOR CERTAIN
  8        FOOD SOLD FOR HUMAN CONSUMPTION AND TO MAKE TECHNICAL CORRECTIONS;  AMEND-
  9        ING  SECTION 63-3621, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM USE TAX FOR
 10        CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMENDING SECTION  63-3638,  IDAHO
 11        CODE,  TO  PROVIDE FOR AN INCREASE IN THE PERCENTAGE OF APPROPRIATED FUNDS
 12        DISTRIBUTED TO THE REVENUE SHARING ACCOUNT AND TO MAKE  TECHNICAL  CORREC-
 13        TIONS;  DECLARING  AN EMERGENCY AND PROVIDING FOR RETROACTIVE APPLICATION,
 14        AND PROVIDING EFFECTIVE DATES.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION 1.  That Section 63-3024A, Idaho Code, be, and the same is  hereby
 17    amended to read as follows:
                                                                        
 18        63-3024A.  CREDITS  AND  REFUNDS. (a) Any resident individual not entitled
 19    to the credit allowed in subsection (b)(1), who is required to file by law and
 20    who has filed an Idaho income tax return, shall be allowed  a  credit  against
 21    taxes due under the Idaho income tax act equal to the amount of fifteen thirty
 22    dollars  ($1530.00)  for each personal exemption for which a deduction is per-
 23    mitted by section 151(b) and (c) of the Internal Revenue Code if  such  deduc-
 24    tion is claimed on the taxpayer's Idaho income tax return, and if the individ-
 25    ual  for whom the deduction is claimed is a resident of the state of Idaho. If
 26    taxes due are less than the total credit allowed, the taxpayer shall be paid a
 27    refund equal to the balance of the unused credit. If the credit or  refund  is
 28    not  claimed for the year for which the individual income tax return is filed,
 29    the right thereafter to claim such credit or refund shall  be  forfeited.  The
 30    state  tax  commission shall prescribe the method by which the refund, if any,
 31    is to be made to the taxpayer.
 32        (b) (1)  A resident individual who has reached  his  sixty-fifth  birthday
 33        before the end of his taxable year, who is required to file by law and who
 34        has  filed  an  Idaho income tax return, shall be allowed a credit against
 35        taxes due under the Idaho income tax act equal to  the  amount  of  thirty
 36        sixty  dollars ($360.00) for each personal exemption representing himself,
 37        a spouse over the age of sixty-five (65) years, or a  dependent  over  the
 38        age  of sixty-five (65) years, but shall be allowed a credit against taxes
 39        due under the Idaho  income  tax  act  equal  to  fifteen  thirty  dollars
 40        ($1530.00)  for each personal exemption representing a spouse or dependent
 41        under the age of sixty-five (65) years. If taxes due  are  less  than  the
 42        total  credit  allowed,  the  taxpayer shall be paid a refund equal to the
 43        balance of the unused credit. If the credit or refund is not  claimed  for
                                                                        
                                           2
                                                                        
  1        the  year  for  which the individual income tax return is filed, the right
  2        thereafter to claim such credit or refund shall be  forfeited.  The  state
  3        tax  commission shall prescribe the method by which the refund, if any, is
  4        to be made to the taxpayer.
  5        (2)  A resident individual who has reached his sixty-fifth birthday and is
  6        not required by law to file  an  Idaho  income  tax  return  and  who  has
  7        received  no  credit or refund under any other subsection of this section,
  8        shall be entitled to a refund  of  thirty  sixty  dollars  ($360.00).  Any
  9        refund  shall  be paid to such individual only upon his making application
 10        therefor at such time and in such manner as may be prescribed by the state
 11        tax commission.
 12        (c)  A resident individual of the state of Idaho who is:
 13        (i)   blind, or
 14        (ii)  a disabled American veteran of any war  engaged  in  by  the  United
 15        States,  whose  disability is recognized as a service connected disability
 16        of a degree of ten per cent percent (10%) or more, or who is in receipt of
 17        a pension for nonservice connected disabilities, in accordance  with  laws
 18        and regulations administered by the United States veterans administration,
 19        substantiated  by a statement as to status signed by a responsible officer
 20        of the United States veterans administration, or
 21        (iii) over sixty-two (62) years of age, and has been allowed none, or less
 22        than all, of the credit provided by subsection (a) or  subsection  (b)  of
 23        this  section,  shall  be entitled to a payment from the refund fund in an
 24        amount equal to fifteen thirty dollars ($1530.00), or the balance  of  his
 25        unused credit, whichever is less, upon making application therefor at such
 26        time and in such manner as the state tax commission may prescribe.
 27        (d)  Any  part-year resident entitled to a credit under this section shall
 28    receive a proportionate credit, in the manner above provided,  reflecting  the
 29    part of the year in which he was domiciled in this state.
 30        (e)  No  credit or refund may be claimed for an exemption which represents
 31    a person who has himself filed an Idaho income tax return claiming a deduction
 32    for his own personal exemption, and in no event shall more than one  (1)  tax-
 33    payer be allowed a credit or refund for the same exemption, or under more than
 34    one (1) subsection of this section.
 35        (f)  The  refunds  authorized by this section shall be paid from the state
 36    refund fund in the same manner as the refunds authorized by  section  63-3067,
 37    Idaho Code.
 38        (g)  An application for any refund which is due and payable under the pro-
 39    visions  of  this  section  must be filed with the state tax commission within
 40    three (3) years of:
 41        (i)  the due date, including extensions, of the return required under sec-
 42        tion 63-3030, Idaho Code, if the applicant is required to file  a  return,
 43        or
 44        (ii) the  15th  day  of  April of the year following the year to which the
 45        application relates if the applicant is not required to file a return.
                                                                        
                                                                        
 46        SECTION 2.  That Section 63-3024A, Idaho Code, be, and the same is  hereby
 47    repealed.
                                                                        
 48        SECTION  3.  That Section 63-3029F, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
                                                                        
 50        63-3029F.  SPECIAL CREDIT AVAILABLE -- NEW  EMPLOYEES.  (1)  Any  taxpayer
 51    shall  be  allowed  a  credit, in an amount determined under subsection (2) of
                                                                        
                                           3
                                                                        
  1    this section, against the tax imposed by this  chapter,  other  than  the  tax
  2    imposed  by section 63-3082, Idaho Code, for any taxable year during which the
  3    taxpayer's employment of new employees, as defined under section  63-3029E(1),
  4    Idaho  Code, increases above the taxpayer's average employment for either: (a)
  5    the prior taxable year, or (b) the average of three (3) prior  taxable  years,
  6    whichever  is higher. No credit shall be allowed under this section unless the
  7    number of new employees equals or exceeds one (1) person.
  8        (2)  The credit authorized in subsection (1) of this section shall be five
  9    hundred dollars ($500) per new employee, but the total  credit  allowed  shall
 10    not  exceed  three  and  one-quarter  percent  (3.25%)  of net income from the
 11    taxpayer's corporate, proprietorship, partnership, small business  corporation
 12    or limited liability company revenue-producing enterprise in which the employ-
 13    ment  occurred.  Additionally, the total of this and all other credits allowed
 14    under this chapter except for the credits  allowed  under  sections  63-3024A,
 15    63-3025D  and  63-3029,  Idaho  Code,  taken during any taxable year shall not
 16    exceed forty-five percent (45%) of the tax otherwise imposed on  the  taxpayer
 17    for the taxable year for which such credit is allowed.
 18        (3)  If  the  sum of the credit carryovers from the credit allowed by sub-
 19    section (2) of this section and the amount of credit for the taxable year from
 20    the credit allowed by subsection (2) of this  section  exceed  the  limitation
 21    imposed  by  subsection  (2) of this section for the current taxable year, the
 22    excess attributable to the current taxable year's credit  shall  be  a  credit
 23    carryover  to  the  three  (3)  succeeding taxable years. The entire amount of
 24    unused credit shall be carried forward  to  the  earliest  of  the  succeeding
 25    years, wherein the oldest available unused credit shall be used first, so long
 26    as the employment level for which the credit was granted is still maintained.
                                                                        
                                                                        
 27        SECTION  4.  That  Section 63-3619, Idaho Code, be, and the same is hereby
 28    amended to read as follows:
                                                                        
 29        63-3619.  IMPOSITION AND RATE OF THE SALES TAX. An excise  tax  is  hereby
 30    imposed  upon each sale at retail at the rate of five per cent percent (5%) of
 31    the sales price of all retail sales subject to taxation under this chapter and
 32    such amount with the exception of food sold for human consumption which  shall
 33    be  exempt  from sales taxation. The types and kinds of food products eligible
 34    for sales tax exemption shall be the same types and  kinds  of  food  products
 35    that  are  eligible  for  purchases made with coupons issued under the federal
 36    food stamp act of 1977 and the food security act of 1985 and  do  not  include
 37    restaurant sales of food. The excise tax as set forth herein shall be computed
 38    monthly on all sales at retail within the preceding month.
 39        (a)  The tax shall apply to, be computed on, and collected for all credit,
 40    instalment  installment,  conditional or similar sales at the time of the sale
 41    or, in the case of rentals, at the time the rental is charged.
 42        (b)  The tax hereby imposed shall be collected by the  retailer  from  the
 43    consumer.
 44        (c)  The  state  tax  commission shall provide schedules for collection of
 45    the tax on sales which involve a fraction of a dollar. The retailer shall cal-
 46    culate the tax upon the entire amount of the purchases of the consumer made at
 47    a particular time and not separately upon each item  purchased.  The  retailer
 48    may  retain  any amount collected under the bracket system prescribed which is
 49    in excess of the amount of tax for which he is liable to the state during  the
 50    period as compensation for the work of collecting the tax.
 51        (d)  It  is unlawful for any retailer to advertise or hold out or state to
 52    the public or to any customer, directly or indirectly, that  the  tax  or  any
                                                                        
                                           4
                                                                        
  1    part  thereof  will be assumed or absorbed by the retailer or that it will not
  2    be added to the selling price of the property sold or that if added it or  any
  3    part thereof will be refunded. Any person violating any provision of this sec-
  4    tion is guilty of a misdemeanor.
  5        (e)  The  tax  commission may by rule provide that the amount collected by
  6    the retailer from the customer in reimbursement of the tax be displayed  sepa-
  7    rately  from  the list price, the price advertised on the premises, the marked
  8    price, or other price on the sales slip or other proof of sale.
  9        (f)  The taxes imposed by this chapter shall apply to the  sales  to  con-
 10    tractors  purchasing  for  use in the performance of contracts with the United
 11    States.
                                                                        
 12        SECTION 5.  That Section 63-3621, Idaho Code, be, and the same  is  hereby
 13    amended to read as follows:
                                                                        
 14        63-3621.  IMPOSITION  AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
 15    is hereby imposed on the storage, use, or other consumption in this  state  of
 16    tangible  personal  property  acquired  on or after July 1, 1965, for storage,
 17    use, or other consumption in this state at the rate of five  percent  (5%)  of
 18    the  value of the property, and with the exception of food sold for human con-
 19    sumption which shall be exempt from use taxation. The types and kinds of  food
 20    products  eligible  for use tax exemption shall be the same types and kinds of
 21    food products that are eligible for purchases made with coupons  issued  under
 22    the  federal  food  stamp act of 1977 and the food security act of 1985 and do
 23    not include restaurant sales of food. Aa recent sales price shall be  presump-
 24    tive  evidence  of  the  value of the property unless the property is wireless
 25    telecommunications equipment, in which case a recent sales price shall be con-
 26    clusive evidence of the value of the property.
 27        (a)  Every person storing, using, or otherwise consuming, in  this  state,
 28    tangible  personal property is liable for the tax. His liability is not extin-
 29    guished until the tax has been paid to this state except that a receipt from a
 30    retailer maintaining a place of business in this state or engaged in  business
 31    in  this  state  given to the purchaser is sufficient to relieve the purchaser
 32    from further liability for the tax to which the  receipt  refers.  A  retailer
 33    shall not be considered to have stored, used or consumed wireless telecommuni-
 34    cations  equipment by virtue of giving, selling or otherwise transferring such
 35    equipment at a discount as an inducement to a consumer to commence or continue
 36    a contract for telecommunications service.
 37        (b)  Every retailer engaged in business in this state, and making sales of
 38    tangible personal property for the storage, use, or other consumption in  this
 39    state,  not  exempted under section 63-3622, Idaho Code, shall, at the time of
 40    making the sales or, if storage, use or other consumption of the tangible per-
 41    sonal property is not then taxable hereunder, at the time the storage, use, or
 42    other consumption becomes taxable, collect the tax from the purchaser and give
 43    to the purchaser a receipt therefor in the manner and form prescribed  by  the
 44    state tax commission.
 45        (c)  The provisions of this section shall not apply when the retailer pays
 46    sales  tax  on  the  transaction and collects reimbursement for such sales tax
 47    from the customer.
 48        (d)  Every retailer engaged in business in this  state  or  maintaining  a
 49    place  of  business in this state shall register with the state tax commission
 50    and give the name and address of all agents operating in this state, the loca-
 51    tion of all distributions or sales houses or offices or other places of  busi-
 52    ness in this state, and such other information as the state tax commission may
 53    require.
                                                                        
                                           5
                                                                        
  1        (e)  For  the purpose of the proper administration of this act and to pre-
  2    vent evasion of the use tax and the duty to collect the use tax, it  shall  be
  3    presumed  that  tangible  personal property sold by any person for delivery in
  4    this state is sold for storage, use, or other consumption in this  state.  The
  5    burden of proving the sale is tax exempt is upon the person who makes the sale
  6    unless  he  obtains from the purchaser a resale certificate to the effect that
  7    the property is purchased for resale or rental.  It  shall  be  presumed  that
  8    sales made to a person who has completed a resale certificate for the seller's
  9    records  are  not  taxable  and the seller need not collect sales or use taxes
 10    unless the tangible personal property purchased is taxable to the purchaser as
 11    a matter of law in the particular instance claimed on the resale certificate.
 12        A seller may accept a resale certificate from a  purchaser  prior  to  the
 13    time  of  sale,  at the time of sale, or at any reasonable time after the sale
 14    when necessary to establish the privilege of the exemption. The resale certif-
 15    icate relieves the person selling the property from the burden of  proof  only
 16    if  taken  from  a person who is engaged in the business of selling or renting
 17    tangible personal property and who holds the permit provided  for  by  section
 18    63-3620,  Idaho  Code,  or  who  is a retailer not engaged in business in this
 19    state, and who, at the time of  purchasing  the  tangible  personal  property,
 20    intends  to  sell or rent it in the regular course of business or is unable to
 21    ascertain at the time of purchase whether the property will be sold or will be
 22    used for some other purpose. Other than as provided elsewhere in this section,
 23    when a resale certificate, properly executed, is presented to the seller,  the
 24    seller  has  no  duty or obligation to collect sales or use taxes in regard to
 25    any sales transaction so documented regardless of whether the purchaser  prop-
 26    erly  or  improperly claimed an exemption. A seller so relieved of the obliga-
 27    tion to collect tax is also relieved of any liability  to  the  purchaser  for
 28    failure  to  collect tax or for making any report or disclosure of information
 29    required or permitted under this chapter.
 30        The resale certificate shall bear the name and address of  the  purchaser,
 31    shall  be  signed  by the purchaser or his agent, shall indicate the number of
 32    the permit issued to the purchaser, or that the purchaser is  an  out-of-state
 33    retailer,  and  shall  indicate the general character of the tangible personal
 34    property sold by the purchaser in the regular course of business. The certifi-
 35    cate shall be substantially in such form as the state tax commission may  pre-
 36    scribe.
 37        (f)  If  a  purchaser  who gives a resale certificate makes any storage or
 38    use of the property other than retention, demonstration or display while hold-
 39    ing it for sale in the regular course of business, the storage or use is  tax-
 40    able as of the time the property is first so stored or used.
 41        (g)  Any  person  violating  any  provision of this section is guilty of a
 42    misdemeanor and punishable by a fine not in  excess  of  one  hundred  dollars
 43    ($100), and each violation shall constitute a separate offense.
 44        (h)  It  shall  be  presumed  that  tangible  personal property shipped or
 45    brought to this state by the purchaser was  purchased  from  a  retailer,  for
 46    storage, use or other consumption in this state.
 47        (i)  It  shall  be presumed that tangible personal property delivered out-
 48    side this state to a purchaser known by the retailer to be a resident of  this
 49    state  was purchased from a retailer for storage, use, or other consumption in
 50    this state. This presumption may be controverted by evidence  satisfactory  to
 51    the state tax commission that the property was not purchased for storage, use,
 52    or other consumption in this state.
 53        (j)  When  the tangible personal property subject to use tax has been sub-
 54    jected to a general retail sales or use tax by another  state  of  the  United
 55    States  in an amount equal to or greater than the amount of the Idaho tax, and
                                                                        
                                           6
                                                                        
  1    evidence can be given of such payment, the property will  not  be  subject  to
  2    Idaho  use tax. If the amount paid the other state was less, the property will
  3    be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
  4    the other state. For the purposes of this subsection, a registration  certifi-
  5    cate  or title issued by another state or subdivision thereof for a vehicle or
  6    trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
  7    cient evidence of payment of a general retail sales or use tax.
  8        (k)  The use tax herein imposed shall not apply to the use by  a  nonresi-
  9    dent  of  this  state of a motor vehicle which is registered or licensed under
 10    the laws of the state of his residence and is not used in this state more than
 11    a cumulative period of time totaling  ninety  (90)  days  in  any  consecutive
 12    twelve  (12)  months,  and  which is not required to be registered or licensed
 13    under the laws of this state.
 14        (l)  The use tax herein imposed shall not apply to the  use  of  household
 15    goods  and personal effects by a resident of this state, if such articles were
 16    acquired by such person in another state while a resident of  that  state  and
 17    primarily  for  use outside this state and if such use was actual and substan-
 18    tial, but if an article was acquired less than three (3) months prior  to  the
 19    time  he entered this state, it will be presumed that the article was acquired
 20    for use in this state and that its use outside this state was not  actual  and
 21    substantial.  For  purposes of this subsection, "resident" shall be as defined
 22    in section 63-3013 or 63-3013A, Idaho Code.
 23        (m)  The use tax herein imposed shall not apply to  the  storage,  use  or
 24    other  consumption  of tangible personal property which is or will be incorpo-
 25    rated into real property and which has been donated  to  and  has  become  the
 26    property of:
 27        (1)  A  nonprofit organization as defined in section 63-3622O, Idaho Code;
 28        or
 29        (2)  The state of Idaho; or
 30        (3)  Any political subdivision of the state.
 31    This exemption applies whether the tangible personal property is  incorporated
 32    in  real property by the donee, a contractor or subcontractor of the donee, or
 33    any other person.
                                                                        
 34        SECTION 6.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 35    amended to read as follows:
                                                                        
 36        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 37    ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
 38    be distributed by the tax commission as follows:
 39        (1)  An  amount  of money shall be distributed to the state refund account
 40    sufficient to pay current refund claims. All  refunds  authorized  under  this
 41    chapter by the commission  shall be paid through the state refund account, and
 42    those moneys are continuously appropriated.
 43        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 44    ated and shall be distributed to the permanent building fund, provided by sec-
 45    tion 57-1108, Idaho Code.
 46        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 47    continuously appropriated and shall be distributed to the water pollution con-
 48    trol account established by section 39-3605, Idaho Code.
 49        (4)  An  amount  equal to the sum required to be certified by the chairman
 50    of the Idaho housing and finance association to the state tax commission  pur-
 51    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 52    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 53    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
                                                                        
                                           7
                                                                        
  1    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
  2    of  the Idaho housing and finance association shall be repaid for distribution
  3    under the provisions of this section, subject to  the  provisions  of  section
  4    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
  5    possible, from any moneys available therefor and  in  excess  of  the  amounts
  6    which the association determines will keep it self-supporting.
  7        (5)  An  amount  equal  to  the  sum required by the provisions of section
  8    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
  9    by section 63-709, Idaho Code.
 10        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 11    Code. of this section
 12        (7)  One  dollar  ($1.00)  on each application for certificate of title or
 13    initial application for registration of  a  motor  vehicle,  snowmobile,  all-
 14    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 15    transportation  department  excepting those applications in which any sales or
 16    use taxes due have been previously collected by a retailer, shall be a fee for
 17    the services of the assessor of the county or the Idaho transportation depart-
 18    ment in collecting such taxes, and shall be paid into the current expense fund
 19    of the county or state highway account established in  section  40-702,  Idaho
 20    Code.
 21        (8)  Thirteen  Sixteen  and three-quarters two-tenths percent (13.7516.2%)
 22    is continuously appropriated and shall be distributed to the  revenue  sharing
 23    account  which is created in the state treasury, and the moneys in the revenue
 24    sharing account will be paid by the tax commission as follows:
 25        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 26        ious cities as follows:
 27             (i)   Fifty percent (50%) of such amount shall be paid to the various
 28             cities, and each city shall be entitled to an amount in  the  propor-
 29             tion  that the population of that city bears to the population of all
 30             cities within the state; and
 31             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 32             cities, and each city shall be entitled to an amount in  the  propor-
 33             tion  that  the preceding year's market value for assessment purposes
 34             for that city bears to the preceding year's market value for  assess-
 35             ment purposes for all cities within the state.
 36        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 37        ious counties as follows:
 38             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 39             shall be distributed one forty-fourth (1/44) to each of  the  various
 40             counties; and
 41             (ii)  The  balance  of such amount shall be paid to the various coun-
 42             ties, and each county shall be entitled to an amount in  the  propor-
 43             tion  that  the  population of that county bears to the population of
 44             the state;
 45        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 46        ated in this subsection (8) shall be paid to the several counties for dis-
 47        tribution to the cities and counties as follows:
 48             (i)   Each  city and county which received a payment under the provi-
 49             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 50             calendar year 1999, shall be entitled to a like  amount  during  suc-
 51             ceeding calendar quarters.
 52             (ii)  If  the  dollar amount of money available under this subsection
 53             (8)(c) in any quarter does not equal the amount paid  in  the  fourth
 54             quarter of calendar year 1999, each city's and county's payment shall
 55             be reduced proportionately.
                                                                        
                                           8
                                                                        
  1             (iii) If  the  dollar amount of money available under this subsection
  2             (8)(c) in any quarter exceeds the amount paid in the  fourth  quarter
  3             of  calendar  year  1999, each city and county shall be entitled to a
  4             proportionately increased payment, but such increase shall not exceed
  5             one hundred five percent (105%) of the  total  payment  made  in  the
  6             fourth quarter of calendar year 1999.
  7             (iv)  If  the  dollar amount of money available under this subsection
  8             (8)(c) in any quarter exceeds one hundred five percent (105%) of  the
  9             total  payment  made in the fourth quarter of calendar year 1999, any
 10             amount over and above such one hundred five percent (105%)  shall  be
 11             paid fifty percent (50%) to the various cities in the proportion that
 12             the  population  of  the  city  bears to the population of all cities
 13             within the state, and fifty percent (50%) to the various counties  in
 14             the  proportion  that the population of a county bears to the popula-
 15             tion of the state; and
 16        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 17        this subsection (8) shall be paid to the several counties for distribution
 18        to special purpose taxing districts as follows:
 19             (i)   Each  such  district  which received a payment under the provi-
 20             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 21             calendar year 1999, shall be entitled to a like  amount  during  suc-
 22             ceeding calendar quarters.
 23             (ii)  If  the  dollar amount of money available under this subsection
 24             (8)(d) in any quarter exceeds the amount distributed under  paragraph
 25             (i)  of  this subsection (8)(d), each special purpose taxing district
 26             shall be entitled to a share of the excess based  on  the  proportion
 27             each  such district's current property tax budget bears to the sum of
 28             the current property tax budgets of all such districts in the  state.
 29             The  state  tax  commission shall calculate district current property
 30             tax budgets to include any unrecovered foregone amounts as determined
 31             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 32             district is situated in more than one (1) county, the tax  commission
 33             shall  determine the portion attributable to the special purpose tax-
 34             ing district from each county in which it is situated.
 35             (iii) If special  purpose  taxing  districts  are  consolidated,  the
 36             resulting  district  is entitled to a base amount equal to the sum of
 37             the base amounts which were received in the last calendar quarter  by
 38             each district prior to the consolidation.
 39             (iv)  If   a   special   purpose  taxing  district  is  dissolved  or
 40             disincorporated, the state tax commission shall continuously distrib-
 41             ute to the board of county commissioners an amount equal to the  last
 42             quarter's  distribution prior to dissolution or disincorporation. The
 43             board of county commissioners shall determine any  redistribution  of
 44             moneys so received.
 45             (v)   Taxing districts formed after January 1, 2001, are not entitled
 46             to a payment under the provisions of this subsection (8)(d).
 47             (vi)  For  purposes of this subsection (8)(d), a special purpose tax-
 48             ing district is any taxing district which is not a city, a county  or
 49             a school district.
 50        (9)  Any  moneys  remaining  over  and  above  those necessary to meet and
 51    reserve for payments under other subsections of this section shall be distrib-
 52    uted to the general account fund.
                                                                        
 53        SECTION 7.  An emergency existing  therefor,  which  emergency  is  hereby
 54    declared  to exist, Section 1 of this act shall be in full force and effect on
                                                                        
                                           9
                                                                        
  1    and after its passage and approval, and retroactively to January 1, 2001; Sec-
  2    tions 2 and 3 of this act shall be in full force and effect on and after Janu-
  3    ary 1, 2002; and Sections 4, 5 and 6 of this act shall be in  full  force  and
  4    effect on and after July 1, 2002.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                              
                          RS 10748
                              
To double the grocery tax credit for the calendar year 2001 and
repeal sales tax on "food" beginning July 1, 2002. When sales tax is
removed from food, the grocery tax credit would be repealed. The
definition for "food" would be the same as for food stamps.




                       FISCAL IMPACT
                              
                              
                              
Doubling the grocery tax credit would have projected general
fund impact of $18.6 Million for fiscal year 2002. Subsequently
repealing sales tax on "food" and repealing the increased grocery tax
credit would have a projected net general fund impact of $84,908,808
in fiscal year 2003.





STATEMENT OF PURPOSE/FISCAL NOTE                              H105






Contact
              Name:    Rep. Bill Sali
                     Phone:   332 1000