Print Friendly HOUSE BILL NO. 113 – Sales tax, refunds, procedure
HOUSE BILL NO. 113
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H0113...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to update and clarify the time and manner
for obtaining refunds for overpayments of sales and use taxes; and to
01/29 House intro - 1st rdg - to printing
01/30 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 113
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES TAXES; AMENDING SECTION 63-3626, IDAHO CODE, TO UPDATE AND
3 CLARIFY THE TIME AND MANNER FOR OBTAINING REFUNDS OF OVERPAYMENTS OF SALES
4 OR USE TAXES, TO PROVIDE PROCEDURES AND TO MAKE A TECHNICAL CORRECTION.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 63-3626, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-3626. REFUNDS, LIMITATIONS, INTEREST. (a) If the tax commission deter-
9 mines that Subject to the provisions of subsection (b) of this section, if any
10 amount due under this chapter has been paid more than once or has been errone-
11 ously or illegally collected or computed, the tax commission shall set forth
12 that fact in its records and overpaid, the excess amount paid or collected may
13 be credited on any amount then due and payable to the state tax commission
14 from that person by whom the excess was paid and any balance refunded to the
15 that person. by whom it was paid or to his successors, administrators or exec-
16 utors; the tax commission is authorized and the state board of tax appeals
17 authorized to order the tax commission in proper cases to credit or refund
18 such amounts whether or not such payments have been paid under protest and
19 certify such refund to the state board of examiners.
20 (b) (1) No such credit or refund shall be allowed or made after three (3)
21 years from the time the payment was made to the state tax commission,
22 unless before the expiration of such period a written claim therefor is
23 filed with the state tax commission by the taxpayer or by the taxpayer's
24 representative, but only if the taxpayer has authorized in writing the
25 representative to file a claim.
26 (2) The three (3) year period allowed by subsection (b)(1) of this sec-
27 tion for making refunds or credit claims shall not apply in cases where
28 For periods in regard to which the state tax commission asserts a defi-
29 ciency under section 63-3629 or 63-3630, Idaho Code, . In such cases, no
30 credits or refunds shall be allowed or made after a claim for refund,
31 relating to that period of deficiency, must be made on or before the later
33 (i) Three (3) years from the time the payment was made The date
34 provided in subsection (b)(1) of this section; or
35 (ii) The date upon which amounts asserted by deficiency become
36 assessed; unless before the expiration of such period a claim there-
37 fore is filed by the taxpayer any administrative or judicial proceed-
38 ing relating to such deficiency is finally resolved; or
39 (iii) The date specified in any agreement under section 63-3633(g),
40 Idaho Code.
41 (3) In the case of claim for refund by a seller for an amount erroneously
42 collected by the seller from a purchaser, no refund shall be paid unless
43 such excess amount is refunded to the purchaser.
1 (4) A taxpayer desiring claiming a refund of amounts paid in obedience to
2 such deficiencies must do so by appealing within the time limits pre-
3 scribed in sections 63-3631 and 63-3049, Idaho Code.
4 (c) Interest shall be allowed on the amount of such credits or refunds at
5 the rate provided in section 63-3045, Idaho Code, from the date such tax was
6 paid to the state tax commission.
7 (d) If the state tax commission denies a claim for refund in whole or in
8 part, it shall provide notice of the denial in the manner provided in section
9 63-3629(c), Idaho Code. The claimant may petition the state tax commission for
10 a redetermination of the denial as provided in section 63-3631, Idaho Code.
11 The tax commission shall issue a final decision pursuant to the requirements
12 of section 63-3045B, Idaho Code. Appeal of a tax commission decision denying
13 in whole or in part a claim for refund shall be made in accordance with and
14 within the time limits prescribed in section 63-3 632049, Idaho Code.
STATEMENT OF PURPOSE
This bill updates and clarifies the statute of limitations on
claiming refunds of overpayments of sales and use taxes. The bill:
Extends the statute of limitations for refunds when the State Tax
Commission asserts additional liability.
Provides for written waiver of the statute of limitations by the
taxpayer and the State Tax Commission.
Clarifies that taxes erroneously collected for a purchaser must be
refunded to the purchaser.
Specifies procedures for review of denied refund claims.
Deletes excess language and corrects a cross reference.
Name: Dan John/Ted Spangler
Agency: State Tax Commission
STATEMENT OF PURPOSE/FISCAL NOTE BILL No. H11