2001 Legislation
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HOUSE BILL NO. 122 – Use tax, personally owned vehicles


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Daily Data Tracking History

H0122...............................................by REVENUE AND TAXATION
USE TAX - Amends existing law relating to the use tax to provide an
exemption from imposition of the use tax on certain personally owned
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax
02/07    Rpt out - rec d/p - to 2nd rdg
02/08    2nd rdg - to 3rd rdg
02/13    3rd rdg - PASSED - 67-0-3
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
      Marley, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wheeler, Wood, Young
      NAYS -- None
      Absent and excused -- Ellsworth, Moss, Mr. Speaker
    Floor Sponsor -- Gould
    Title apvd - to Senate
02/14    Senate intro - 1st rdg - to Loc Gov
02/19    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
      Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
      King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
      Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Whitworth
    Title apvd - to House
03/09    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/19    Governor signed
         Session Law Chapter 57
         Effective: 07/01/01

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 122
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  4    Be It Enacted by the Legislature of the State of Idaho:
  5        SECTION  1.  That  Section 63-3621, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
  7        63-3621.  IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise  tax
  8    is  hereby  imposed on the storage, use, or other consumption in this state of
  9    tangible personal property acquired on or after July  1,  1965,  for  storage,
 10    use,  or  other  consumption in this state at the rate of five percent (5%) of
 11    the value of the property, and a recent sales price shall be presumptive  evi-
 12    dence  of the value of the property unless the property is wireless telecommu-
 13    nications equipment, in which case a recent sales price  shall  be  conclusive
 14    evidence of the value of the property.
 15        (a)  Every  person  storing, using, or otherwise consuming, in this state,
 16    tangible personal property is liable for the tax. His liability is not  extin-
 17    guished until the tax has been paid to this state except that a receipt from a
 18    retailer  maintaining a place of business in this state or engaged in business
 19    in this state given to the purchaser is sufficient to  relieve  the  purchaser
 20    from  further  liability  for  the tax to which the receipt refers. A retailer
 21    shall not be considered to have stored, used or consumed wireless telecommuni-
 22    cations equipment by virtue of giving, selling or otherwise transferring  such
 23    equipment at a discount as an inducement to a consumer to commence or continue
 24    a contract for telecommunications service.
 25        (b)  Every retailer engaged in business in this state, and making sales of
 26    tangible  personal property for the storage, use, or other consumption in this
 27    state, not exempted under section 63-3622, Idaho Code, shall, at the  time  of
 28    making the sales or, if storage, use or other consumption of the tangible per-
 29    sonal  property is not then taxable hereunder, at the time the storage, use or
 30    other consumption becomes taxable, collect the tax from the purchaser and give
 31    to the purchaser a receipt therefor in the manner and form prescribed  by  the
 32    state tax commission.
 33        (c)  The provisions of this section shall not apply when the retailer pays
 34    sales  tax  on  the  transaction and collects reimbursement for such sales tax
 35    from the customer.
 36        (d)  Every retailer engaged in business in this  state  or  maintaining  a
 37    place  of  business in this state shall register with the state tax commission
 38    and give the name and address of all agents operating in this state, the loca-
 39    tion of all distributions or sales houses or offices or other places of  busi-
 40    ness in this state, and such other information as the state tax commission may
 41    require.
 42        (e)  For  the purpose of the proper administration of this act and to pre-
 43    vent evasion of the use tax and the duty to collect the use tax, it  shall  be
  1    presumed  that  tangible  personal property sold by any person for delivery in
  2    this state is sold for storage, use, or other consumption in this  state.  The
  3    burden of proving the sale is tax exempt is upon the person who makes the sale
  4    unless  he  obtains from the purchaser a resale certificate to the effect that
  5    the property is purchased for resale or rental.  It  shall  be  presumed  that
  6    sales made to a person who has completed a resale certificate for the seller's
  7    records  are  not  taxable  and the seller need not collect sales or use taxes
  8    unless the tangible personal property purchased is taxable  to  the  purchaser
  9    as  a  matter of law in the particular instance claimed on the resale certifi-
 10    cate.
 11        A seller may accept a resale certificate from a  purchaser  prior  to  the
 12    time  of  sale,  at the time of sale, or at any reasonable time after the sale
 13    when necessary to establish the privilege of the exemption. The resale certif-
 14    icate relieves the person selling the property from the burden of  proof  only
 15    if  taken  from  a person who is engaged in the business of selling or renting
 16    tangible personal property and who holds the permit provided  for  by  section
 17    63-3620,  Idaho  Code,  or  who  is a retailer not engaged in business in this
 18    state, and who, at the time of  purchasing  the  tangible  personal  property,
 19    intends  to  sell or rent it in the regular course of business or is unable to
 20    ascertain at the time of purchase whether the property will be sold or will be
 21    used for some other purpose. Other than as provided elsewhere in this section,
 22    when a resale certificate, properly executed, is presented to the seller,  the
 23    seller  has  no  duty or obligation to collect sales or use taxes in regard to
 24    any sales transaction so documented regardless of whether the purchaser  prop-
 25    erly  or  improperly claimed an exemption. A seller so relieved of the obliga-
 26    tion to collect tax is also relieved of any liability  to  the  purchaser  for
 27    failure  to  collect tax or for making any report or disclosure of information
 28    required or permitted under this chapter.
 29        The resale certificate shall bear the name and address of  the  purchaser,
 30    shall  be  signed  by the purchaser or his agent, shall indicate the number of
 31    the permit issued to the purchaser, or that the purchaser is  an  out-of-state
 32    retailer,  and  shall  indicate the general character of the tangible personal
 33    property sold by the purchaser in the regular course of business. The certifi-
 34    cate shall be substantially in such form as the state tax commission may  pre-
 35    scribe.
 36        (f)  If  a  purchaser  who gives a resale certificate makes any storage or
 37    use of the property other than retention, demonstration or display while hold-
 38    ing it for sale in the regular course of business, the storage or use is  tax-
 39    able as of the time the property is first so stored or used.
 40        (g)  Any  person  violating  any  provision of this section is guilty of a
 41    misdemeanor and punishable by a fine not in  excess  of  one  hundred  dollars
 42    ($100), and each violation shall constitute a separate offense.
 43        (h)  It  shall  be  presumed  that  tangible  personal property shipped or
 44    brought to this state by the purchaser was  purchased  from  a  retailer,  for
 45    storage, use or other consumption in this state.
 46        (i)  It  shall  be presumed that tangible personal property delivered out-
 47    side this state to a purchaser known by the retailer to be a resident of  this
 48    state  was purchased from a retailer for storage, use, or other consumption in
 49    this state. This presumption may be controverted by evidence  satisfactory  to
 50    the state tax commission that the property was not purchased for storage, use,
 51    or other consumption in this state.
 52        (j)  When  the tangible personal property subject to use tax has been sub-
 53    jected to a general retail sales or use tax by another  state  of  the  United
 54    States  in an amount equal to or greater than the amount of the Idaho tax, and
 55    evidence can be given of such payment, the property will  not  be  subject  to
  1    Idaho  use tax. If the amount paid the other state was less, the property will
  2    be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
  3    the other state. For the purposes of this subsection, a registration  certifi-
  4    cate  or title issued by another state or subdivision thereof for a vehicle or
  5    trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
  6    cient evidence of payment of a general retail sales or use tax.
  7        (k)  The use tax herein imposed shall not apply to the use by  a  nonresi-
  8    dent  of  this  state of a motor vehicle which is registered or licensed under
  9    the laws of the state of his residence and is not used in this state more than
 10    a cumulative period of time totaling ninety   (90)  days  in  any  consecutive
 11    twelve  (12)  months,  and  which is not required to be registered or licensed
 12    under the laws of this state.
 13        (l)  The use tax herein imposed shall not apply to the  use  of  household
 14    goods,  and personal effects and personally owned motor vehicles by a resident
 15    of this state, if such articles were acquired by such person in another  state
 16    while a resident of that state and primarily for use outside this state and if
 17    such  use was actual and substantial, but if an article was acquired less than
 18    three (3) months prior to the time he entered this state, it will be  presumed
 19    that  the  article was acquired for use in this state and that its use outside
 20    this state was not actual and substantial. For purposes  of  this  subsection,
 21    "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
 22        (m)  The  use  tax  herein  imposed shall not apply to the storage, use or
 23    other consumption of tangible personal property which is or will  be  incorpo-
 24    rated  into  real  property  and  which has been donated to and has become the
 25    property of:
 26        (1)  A nonprofit organization as defined in section 63-3622O, Idaho  Code;
 27        or
 28        (2)  The state of Idaho; or
 29        (3)  Any political subdivision of the state.
 30    This  exemption applies whether the tangible personal property is incorporated
 31    in real property by the donee, a contractor or subcontractor of the donee,  or
 32    any other person.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
      Amends section 63-3621, Idaho Code, of the Sales Tax Act to
    restore language relating to the exemption for certain
    personal motor vehicles. The language was inadvertently
    repealed in 1998. 
      No fiscal effect.  
    Name:  Dan John/Ted Spangler
    Agency:  State Tax Commission
    Phone:  334-7530